Houston Oil Companies Warn Against U.S. Withdrawal From Paris Agreement

Exxon Mobil CEO Darren Woods and other industry leaders argue that emissions monitoring is crucial for global competitiveness.

Jan. 28, 2026 at 2:15pm

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Despite the U.S. officially withdrawing from the Paris Agreement this week, some of Houston's major oil and gas companies are voicing concerns about the move. Exxon Mobil CEO Darren Woods has repeatedly warned President Donald Trump against exiting the global climate pact, arguing that emissions monitoring and common-sense policies are vital for the industry's ability to operate internationally and attract foreign investment. Other Houston-based companies like Freeport LNG have also cautioned that eliminating emissions reporting programs will put U.S. energy exports at a disadvantage, especially in the lucrative European market.

Why it matters

The U.S. withdrawal from the Paris Agreement marks a stark contrast with the goals of the global climate accord, which aims to limit warming to 3.6°F by slashing greenhouse gas emissions. While the move aligns with the Trump administration's efforts to roll back environmental regulations, some of Houston's major oil and gas players warn that it could undermine their ability to compete internationally and access foreign markets and investment.

The details

The U.S. officially withdrew from the Paris Agreement this week, a global pact made by most of the world's nations to slow global warming. President Trump has been moving in the opposite direction, gutting emissions monitoring programs and withdrawing from international environmental and peace organizations. However, Exxon Mobil CEO Darren Woods has repeatedly warned Trump against exiting the Paris Agreement, arguing that emissions data transparency is crucial for the industry's global competitiveness and market access. Other Houston companies like Freeport LNG have also cautioned that eliminating emissions reporting will put U.S. energy exports, especially liquefied natural gas to Europe, at a disadvantage as the EU pursues aggressive climate goals.

  • The U.S. officially withdrew from the Paris Agreement this week.
  • Exxon Mobil CEO Darren Woods warned against withdrawing from the Paris Agreement in 2017 and again in 2024 after President Trump's re-election.

The players

Darren Woods

The CEO of Exxon Mobil, one of the world's largest oil and gas companies headquartered in Houston.

Exxon Mobil

A major American oil and gas company based in Houston, Texas that is considered one of the world's largest contributors to climate change.

Freeport LNG

A Houston-based company that operates one of the largest liquefied natural gas (LNG) export terminals in the world.

Shaw Ottis

The senior vice president at Freeport LNG.

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What they’re saying

“We need a global system for managing global emissions.”

— Darren Woods, CEO, Exxon Mobil (Houston Chronicle)

“The government role is extremely important and one that they haven't been successfully fulfilling, quite frankly.”

— Darren Woods, CEO, Exxon Mobil (Houston Chronicle)

“The EPA proposal to end reporting under the greenhouse gas reporting program... that's going to be detrimental. If we don't have that, even if it's a voluntary program, I think it's going to put U.S. LNG at a disadvantage.”

— Shaw Ottis, Senior Vice President, Freeport LNG (Houston Chronicle)

What’s next

The Biden administration has indicated it will seek to rejoin the Paris Agreement, which could impact the policies and regulations governing the oil and gas industry in the U.S.

The takeaway

Despite the Trump administration's withdrawal from the Paris climate accord, major Houston-based oil and gas companies are warning that eliminating emissions monitoring and reporting programs will undermine their global competitiveness and market access, especially in lucrative overseas markets like Europe that are pursuing aggressive climate goals.