Big Oil spent a record $31.4 million in CA lobbying efforts in 2024's first 9 months

Sacramento — Big Oil has spent a record $31.4 million in California lobbying efforts in the first 9 months of 2024 in an effort to fend off polluter accountability and anti-price gouging measures.

California’s 2024 third-quarter disclosures reveal that the oil and gas industry spent an unprecedented $16.1 million on lobbying and influence activities from July through September, according to a press statement from the Last Chance Alliance.

“This spending easily surpasses the previous annual record of $26.2 million set in 2017, with a full quarter of payments yet to be disclosed,” the group wrote. “With a full quarter left—this year’s oil industry spending has reached new heights.”

Over the seven quarters of the current legislative session of 2023-2024, Big Oil has already invested $56.8 million in lobbying efforts, far exceeding the previous record of $44 million set during the 2017-2018 session, the alliance stated.

The Western States Petroleum Association (WSPA), Chevron, and Aera Energy, now merged into California Resources Corporation, collectively spent $14.5 million. WSPA topped the lobbying spending spree with an amazing $10,121,571. Chevron came in second with $4,106,389, while Aera Energy came in third with $302,093. 

The top five Big Oil influence spenders can be seen below. 

Company Spending
Western States Petroleum Association $10,121,571.13
Chevron $4,106,389.79
Aera Energy $302,093.60
Phillips 66 $223,503.08
Marathon Petroleum $154,011.81

Representatives of climate, consumer and environmental groups commented on the significance of the unprecedented lobbying spending by the oil industry in California.

“The fossil fuel industry is panicking,” said Allie Rosenbluth, U.S. Program Manager at Oil Change United States. “It’s spending tens of millions to counter the power of the Californians who are standing up against its deadly pollution, as well as the politicians who are taking notice of the climate, health, and safety impacts of fossil fuels.  But regardless of the industry’s desperate attempts to manipulate our political system with its dirty dollars, a clean energy future is on its way, thanks to the collective power of communities across California.”

“Fossil fuel money in politics is bad for us, bad for the planet, bad for frontline communities, and bad for democracy,” Rosenbluth explained. “To ensure a liveable future, we need a healthy democracy where our elected officials are free from the destructive fossil fuel industry’s dirty money. Nearly 700 California politicians have already pledged not to take fossil fuel money – it’s time for the rest to follow. ”

Advocates said most of the oil industry’s spending went not toward direct lobbying, but rather to broader “influence” activities that state law also requires them to disclose. Only $1.8 million was allocated to direct lobbying out of the $16.1 million spent in the third quarter. For example, WSPA spent just $203,374 on direct lobbying out of the $10.1 million it spent. 

Within these influence activities, the oil industry directed $1.25 million to the front group Californians for Energy Independence, with $1 million from Chevron and $250,000 from Aera. Another industry-backed front group, Californians for Affordable & Reliable Energy (CARE), reported $4 million in spending for the quarter, the Alliance reported.

Throughout the quarter, the oil industry focus its efforts on blocking the Make Polluters Pay legislative package, targeting bills including AB 1866 (idle wells reform), AB 2716 (marginal wells reform), and AB 3233 (reaffirming localities authority to regulate or ban oil drilling), according to the group. All three of these bills were ultimately signed into law by Governor Gavin Newsom.

“Big Oil also pushed back against legislative and regulatory measures aimed at increasing transparency and curbing price gouging in the refining sector, including efforts related to the ongoing implementation of SBX 1-2 and the debate and passage of ABX 2-1. Californians for Energy Independence disclosed spending to oppose AB 2716 and AB 3233, while CARE reported using its funds to oppose ABX 2-1,” the Alliance wrote.

“Several industry players—including the California Independent Petroleum Association, WSPA, Chevron, Shell Oil, Occidental Petroleum, and BP—also lobbied on the Low Carbon Fuel Standard (LCFS), a controversial regulatory program that oftenbenefits production of dirty and carbon-intensive fuels, despite its name.”

Environmental justice advocates are urging the California Air Resources Board to reject LCFS’s renewal when the program is up for a vote on November 8. 

“It is no surprise to see that Big Oil is spending unprecedented amounts of money on lobbying this quarter,” said Isabel Penman, Northern California Organizer for Food & Water Watch. “Governor Newsom must work to counteract the influence of Big Oil and push his agencies to make smart decisions that move us away from fossil fuels and center the health of the communities living in the wake of climate change and rampant pollution.”

“This includes CARB rejecting the amendments to the Low Carbon Fuel Standard that will incentivize major polluters to keep polluting, and the CPUC voting to shut down the dangerous Aliso Canyon gas storage facility – the site of the biggest methane and polytoxic blowout in U.S. history – by 2027,” Penman argued.

“Using a tactic that helps obscure their direct involvement in electioneering, oil majors have funneled much of their campaign finance spending through a Super PAC with a deceptively broad name: the Coalition to Restore California’s Middle Class Including Energy Companies Who Produce Gas, Oil, Jobs and Pay Taxes. This Super PAC has already spent $7.9 million, funded by $12 million from top contributors like Chevron ($4 million), Valero ($2.5 million), Phillips 66 ($2 million), Marathon ($2 million), and California Resources Corporation ($1.5 million),” the group continued.

Meghan Sahli-Wells, California Director of Elected Officials to Protect America and former Mayor of Culver City, slammed the unprecedented spending by the oil industry.

“For Big Oil, polluting our air, water and planet are not enough; they’re polluting our democracy with record-shattering amounts of lobbying money, too,” she said. “Shame on them. Furthermore, as a coalition of elected officials fighting climate change, we urge all candidates and current electeds to refuse dirty fossil fuel dollars. We win by creating safe and healthy communities, not by accepting contributions from corporations that put Californians in harm’s way.”    

Lobbying is just one tool that Big Oil uses to exert its power and influence in California.

WSPA and Big Oil wield their power in 8 major ways: through (1) lobbying; (2) campaign spending; (3) serving on and putting shills on regulatory panels; (4) creating Astroturf groups; (5) creating alliances with labor unions; (6) contributing to non profit organizations; (7) working in collaboration with media; and (8) sponsoring awards ceremonies for legislators and journalists.  

WSPA and Big Oil have for years worked closely with media outlets and more recently have sponsored awards for legislators and journalists. For example, the Western States Petroleum Association was one of the “lede sponsors” of the Sacramento Press Club’s Annual Journalism Awards for the past two years.

In one of many examples of oil industry advocates serving on advisory and regulatory panels, Catherine Reheis-Boyd, the President and CEO of the Western States Petroleum Association, served as the Chair of the Marine Life Protection Act (MLPA) Initiative Blue Ribbon Task Force to create “marine protected areas” in Southern California from 2009 to 2012. She also served on the task forces for the Central Coast, North Central Coast and North Coast from 2004 to 2012.

METHODOLOGY: The numbers for the Last Chance Alliance press release came from taking the original oil and gas industry list compiled by CalAccess and then removing any companies placed on the list which are part of the biomass or carbon removal industries.