Jamie Dimon says cutting off oil and gas funding would be ‘road to hell for America’

Jamie Dimon says cutting off oil and gas funding would be ‘road to hell for America’

Stopping new oil and gas funding? “That would be the road to hell for America.”


— Jamie Dimon

JPMorgan Chase Chief Executive Jamie Dimon has assured lawmakers that his bank has no intention of stopping oil development financing.

Dimon, who appeared with other top banking executives on Capitol Hill Wednesday, was asked by Rep. Rashida Tlaib, D-Michigan, to answer “yes” or “no” to a handful of questions. This included whether JPMorgan JPM,
-1.14%
has a policy against financing new oil and gas products.

“Absolutely not, and that would be the road to hell for America,” said Dimon, whose bank is the largest provider of U.S. loans and other capital to the energy sector.

Sixty banks listed in a report issued earlier this year funneled $185.5 billion last year alone to the 100 companies that did the most to expand CL00 oil.
-0.57%
and the natural gas sector. The report came from a group of environmental nonprofits in their 13th annual Banking on Climate Chaos.

The Biden administration used its narrow majority in Congress to pass legislation beyond executive orders for a shift to alternative energy that aims to reduce US carbon emissions by 50% by 2030 and to zero by 2050. The energy sector contributes about 40 % of global heat-trapping CO2. Three-quarters of those emissions come from the six largest economies, including the US and China at the top, the World Bank says.

Republicans and some business executives argue that while solar, wind and nuclear ICLN,
-3.15%
can meet more of the nation’s energy needs, traditional oil and gas needs to play a role due to high energy costs and help strengthen US energy independence.

The release which examined the banks said that in the six years since the adoption of the Paris Agreement, which set a target for global warming of no more than 2 degrees Celsius and, ideally, 1.5 degrees, the world’s 60 largest banks financed the fossil fuels with $4.6 trillion in loans and other funds.

The report showed that overall fossil fuel financing is still dominated by four US banks, with Dimon’s JPMorgan Chase, Citigroup C,
-1.62%
Wells Fargo WFC,
-1.77%
and Bank of America BAC,
-1.96%
together they account for a quarter of all fossil fuel financing identified over the past six years.

On Wednesday, lawmakers asked bank CEOs further questions about inflation and home ownership on the same day the Federal Reserve moved ahead with another expected rate hike. House Republicans dismissed the appearances on Capitol Hill as unnecessary for the bank executives. CEOs largely pushed back on capital requirements and praised their role in keeping capital flowing as the economy navigates difficult terrain as the world bounces back from the worst of the COVID-19 pandemic.

The CEOs will testify before the US Senate Banking Committee on Thursday.

The Associated Press contributed.

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