Michigan is taking major oil and gas companies to court, joining nearly a dozen other states that have brought climate lawsuits against ExxonMobil and its industry peers. But Michigan’s approach is different: Big Oil is accused not of deceiving consumers or misrepresenting the dangers of climate change, but of colluding to drive up energy costs while suppressing competition from clean and affordable technologies like solar power and electric vehicles.
Legal experts say this strategy is risky and could face challenges, but it could potentially be a game changer if the state can overcome initial dismissal efforts by industry defendants.
Michigan Attorney General Dana Nessel filed the lawsuit in federal district court last month against BP, Chevron, ExxonMobil, Shell and the American Petroleum Institute. The lawsuit, brought under federal and state antitrust laws, alleges a conspiracy to delay the transition to renewable energy and EVs and maintain fossil fuels’ market dominance.
Exxon said in a statement that the state’s action “is yet another legally inconsistent attempt to regulate by litigation. It will not reduce emissions, it will not help consumers, and it will not stand up to the law.”
Chevron did not respond to requests for comment, and BP and Shell declined to comment.
API Senior Vice President and General Counsel Ryan Meyers said the Michigan case is “baseless” and part of a “coordinated campaign against an industry that powers everyday life, drives America’s economy, and is actively reducing emissions.”
“We continue to believe that energy policy is a matter for Congress, not a matter for the courts,” Meyers said.
During a congressional hearing this week with testimony from Attorney General Pam Bondi, U.S. Representative Harriet Hageman (R-Wyo.) cited the Michigan lawsuit to argue that these “novel approaches” to climate law require a federal response. Hageman said she is working with House and Senate colleagues to craft legislation aimed at protecting fossil fuel companies from state climate liability laws and lawsuits.
<a href