Sounds sensational, doesn’t it? Click bait. Well, after reading this, you tell me.
It’s not widely known but over the past 100 years, investors have demanded agreements and treaties from the governments of countries they invest in. There are thousands of these treaties, including with the United States. Investors understandably don’t like risk and do everything possible to eliminate risk. Countries, especially poor countries, will jump through hoops, bend over backwards, go to any length to attract foreign investment. They’ll give everything up and sign such agreements in order to attract foreign money.
In the case of fossil fuel companies, such treaties enable them to demand hefty compensation if the government interferes with the business in any way, revokes permits to drill, delays or refuses permits to lay pipelines, restricts extraction, and so forth. We’re talking payouts that can amount to hundreds of billions of dollars if/when these treaties are invoked, far beyond the means of many countries.
And, it’s starting already. The U.S.A. is being sued to the tune of a billion dollars for cancelling the Keystone Pipeline. The governments of Italy, the Netherlands, Poland, and others are being sued for four billion dollars over their phasing out of coal power plants, requiring environmental impact assessments, and blocking of extraction projects. Anything that interferes with the business is grounds to sue for damages.
These treaties enable fossil fuel companies to hold us hostage and prevent the implementation of measures to mitigate climate change. Oil companies can make it too expensive to wean ourselves off of fossil fuels, hamstringing the ability of countries to deal with climate change.
It’s an insane situation where the urgent need to act on climate change will be derailed by old treaties from the middle of the last century. But here we are. They have us over a barrel (of oil).