Gas Industry Association Withdraws Support Over Negative Advertising and Anti-Oil Campaign

Strategic Insights -

The American Gas Association (AGA) has withdrawn its support from the Domestic Fuels Alliance over concerns about the lobbying group's negative advertising campaign and its support of an anti-oil document. The Domestic Fuels Alliance promotes alternatives to imported oil, but AGA deemed two of the group's ads as "totally unacceptable" due to their negative tactics. The ads, which appeared in Washington publications, included statements about major oil companies being responsible for one oil spill a day and attacking the health aspects of methyl tertiary butyl ether (MTBE), an oxygenate used in gasoline.

Key Takeaways:

  • The American Gas Association (AGA) withdrew its support from the Domestic Fuels Alliance due to concerns about negative advertising and an anti-oil document.
  • Two of the Domestic Fuels Alliance's ads were deemed "totally unacceptable" by AGA, including one stating that major oil companies are responsible for one oil spill a day.
  • The ads were run in Washington publications to target members of Congress and were considered by AGA to be negative tactics.
  • Ethanol and natural gas advocates have also been criticized for their attacks on MTBE, including a recent ad by the Natural Gas First Coalition claiming that babies are guinea pigs in a health-threatening national experiment with MTBE-blended reformulated gasoline.
  • The Oxygenated Fuels Association responded to concerns about MTBE by stating that virtually every major foreign and domestic automaker approves the use of reformulated gasoline blended with MTBE.
  • Archer Daniels Midland Inc. (ADM), a primary member of the Domestic Fuels Alliance, is a leading ethanol manufacturer.
  • The tactics used by the Domestic Fuels Alliance have caused some organizations to back away, including the American Gas Association's decision to leave the group.

Statistics:

  • Two of the Domestic Fuels Alliance's ads were deemed "totally unacceptable" by AGA.
  • One of the ads stated that major oil companies are responsible for one oil spill a day.
  • MTBE has been the subject of criticism from ethanol and natural gas advocates, who have attacked its health aspects.
  • The Oxygenated Fuels Association states that virtually every major foreign and domestic automaker approves the use of reformulated gasoline blended with MTBE.
  • Four studies finding no harmful effects from MTBE were published in December in the peer-reviewed journal Inhalation Toxicology.

Sources:

  • "AGA Withdraws From Domestic Fuels Alliance" by Jane Ulman, Washington Post, [n.d.]
  • "Domestic Fuels Alliance Promotes Alternatives to Imported Oil" [n.d.]