On April 30, 2024, the minority staff of the House Committee on Oversight and Accountability, together with the majority staff of the Senate Committee on the Budget, published a joint report on the oil and gas industry’s efforts to mislead the public about the impact of fossil fuel emissions and undermine federal action to curb these emissions. The report, “Denial, Disinformation, and Doublespeak: Big Oil’s Evolving Efforts To Avoid Accountability for Climate Change,” draws on more than 4,500 previously undisclosed documents subpoenaed from the oil and gas sector about their responses to climate change. Following the report’s release, the Senate Budget Committee held a hearing focused on the subpoenaed documents and the industry’s contribution to climate change.

Nearly two and a half years prior to the report’s publication, the House Oversight Committee subpoenaed leading U.S. oil and gas companies —ExxonMobil, BP, Shell, and Chevron— as well as the American Petroleum Institute and the Chamber of Commerce for internal communications regarding climate change, clean energy, and greenhouse gases. Leveraging this information —and sometimes the absence of it— the Committee convened multiple hearings and publicly released memoranda and documents in 2021 and 2022.

Methane emissions from fossil fuels are a primary driver of the increasing costs and devastating impacts of climate change. In 2020, natural gas and petroleum systems were responsible for 32 percent of emissions from human activities. Annually, oil and gas companies in the United States release hundreds of billions of cubic feet of natural gas into the atmosphere. An economic analysis commissioned by the Environmental Defense Fund and Taxpayers for Common Sense revealed that in 2019, oil and gas operations on U.S. public and tribal lands wasted over 163 billion cubic feet of gas, valued at $500 million.

These emissions not only impose climate liabilities on taxpayers but also squander taxpayer-owned resources, often without paying royalties. Between FY2012 and FY2021, operators reported a loss of 300 billion cubic feet of natural gas —worth $949 million— from federal lands alone. Had all reported lost gas been subject to the prevailing royalty rate of 12.5%, taxpayers would have received an additional $76 million in revenue. This figure is likely underestimated, as self-reporting provides little incentive for operators to check for leaks or accurately measure lost gas.

The joint committee staff report emphasizes that the oil and gas industry has long understood the dangers of their emissions and has actively sought to obscure scientific and public understanding of climate change, spreading misinformation to block climate action. The documents obtained illustrate how the industry’s campaign, “evolved from explicit denial of the basic science underlying climate change to deception, disinformation, and doublespeak,” according to the report. This includes portraying natural gas as a green energy source while internally doubting its environmental benefits, lobbying against pro-climate legislation and regulations while publicly endorsing them, and promoting low-carbon technology with minimal investment in its commercial use.

The report also pointed out that oil and gas companies strategically promote their climate goals and the use of climate-smart technologies, such as carbon capture and storage (CCS), without making substantial efforts toward positive climate impact. CCS, the process of capturing carbon emissions and sequestering them underground, is championed by the industry as a step towards net zero emissions. However, internal documents reveal that companies view CCS primarily as a means to extend the use of natural gas. During the hearing, Chairman Whitehouse (D-RI) noted that the industry has continued “pretending it is taking climate change seriously.”

Moreover, the subpoenaed internal communications indicate that oil and gas companies recognize the prohibitive costs of scaling CCS. Representative Raskin (D-MD), Ranking Member of the House Oversight Committee, stated that the industry treats CCS “as a shiny flashy object that would capture public attention,” but that it does not attract serious investment. Instead, the companies lobby for increased federal subsidies to support their CCS projects. Taxpayers annually invest billions in federal CCS support, including the carbon capture tax credit expanded by Congress in 2022. It is expected to cost taxpayers nearly $5 billion over five years and $36 billion over ten years. These subsidies, along with taxpayer-funded research and development and loans for CCS projects, increase the profitability of (already profitable) oil and gas companies without significantly benefiting the climate.

CCS subsidies come on top of the billions of taxpayer dollars oil and gas companies already receive through fossil fuel tax breaks and favorable oil and gas leasing policies. Oil and gas tax subsidies —such as intangible drilling costs, percentage allowance, and special rules for foreign fossil fuel income— are expected to cost taxpayers at least $110 billion over the next ten years. Favorable federal oil and gas leasing policies have also allowed oil and gas companies to leave billions on the table due to outdated royalty rates while releasing massive amounts of taxpayer-owned natural gas into the atmosphere royalty-free, although new rules on onshore leasing and methane will alleviate these taxpayer costs.

Every year, oil and gas companies spend millions on lobbying and political contributions to sustain favorable policies and taxpayer subsidies. According to a TCS analysis, using data from the Center for Responsive Politics, the industry has spent more than $100 million to influence federal policymakers every year since 2006. In 2021 alone, the industry employed 746 lobbyists—more than one for each member of Congress. The oil and gas industry has also contributed more than $900 million to political campaigns since the 1990 election, accounting for inflation. As profits continue to rise, much of it will likely continue to be used to advocate for more favorable treatment in federal policies and the tax code.

The costs of climate change are rising, and American taxpayers are paying the price. The National Oceanic and Atmospheric Administration reports that natural disasters are increasing in number and are becoming more costly. Over the past five years, taxpayers have borne an average annual cost of roughly $62 billion$62 billion, a 35 percent increase over the preceding five-year average, for various programs aimed at combating and mitigating climate impacts. As Sen. Van Hollan (D-MD) asked during the hearing, “why should the public be having to pay all the costs of harm that is due to the actions of big oil companies and other major emitter?”