Texas has taken the lead on challenging firms that actively work to boycott the oil and gas industry.
The state’s Comptroller, Glen Hegar, wrote to several firms March 16 believed to be enacting policies to promote the boycott of the industry, according to a Houston Daily report. Firms that do not reply to the letters will be assumed to be participating in a boycott, according to a recent press release from Hegar’s office.
West Virginia also recently advanced legislation that would take similar action and Texas Public Policy Foundation’s Jason Isaac commented on the decision in a newsletter March 17.
“A free market is no longer free when the major financial players are colluding—not behind the scenes but out in the open—to gut politically targeted businesses while forcing dollars into their own green investments” Isaac wrote in his newsletter. Isaac was referring to the advancement of Senate Bill 262 in West Virginia.
“That’s exactly what’s happening on Wall Street with the rise of ESG (Environmental, Social and Governance) investing,” he wrote.
West Virginia officials are pleased with the advancement of the legislation.
West Virginia has taken a significant step to protect coal, oil and natural gas industries and jobs in the state with the passage of Senate Bill 262 on Saturday, West Virginia Treasurer Riley Moore, said in a March 14 press release.
“I am proud to lead the way to protect our coal, oil and natural gas companies from unfair, anti-American attempts to cut off their access to capital and banking services,” Moore said in the release. “The current situation in Europe clearly demonstrates the dangers of letting woke capitalists weaken and destroy our domestic energy producers. It’s time to fight back against those who are trying to wipe out thousands of middle-class jobs, and once again put America first and restore our energy independence."
Senate Bill 262 enables the Treasurer’s Office to start a “Restricted Financial Institution List” including banks that have refused to terminate or limit commercial activity with coal, oil, or natural gas companies without a reasonable business purpose, according to the release. The bill must still be signed by West Virginia Gov. Jim Justice.
Moore revealed Jan. 17 that the Board of Treasury Investments, who manages the state's $8 billion in operating funds, will no longer use BlackRock Inc., according to the SWFI Institute. The decision was propelled by recent allegations that BlackRock was urging companies to embrace "net zero" investments and investment strategies that would damage the coal, oil and natural gas industries in West Virginia, Moore said.
Blackrock's investments in Chinese firms that create investment risks are not in the interests of the United States, according to a report by Mountain State Times. Moore claimed that there was significant financial risk associated with firms that majorly invest in China in the report.
Larry Fink, BlackRock CEO, wrote a letter recently to BlackRock invested companies in which he said businesses not expecting a carbon-free future, risk being left behind and that it was an emphasis of BlackRock to assist in the switch to net-zero emissions, according to Mountain State Times.