ConocoPhillips goes green

ConocoPhillips (NYSE: COP) became the first U.S. based oil company to support mandatory national regulation of greenhouse gas emissions today. This is a great step for the oil industry and hopefully will create a domino effect through the industry.

Chairman and chief executive James J. Mulva said that it was just time for the company to join the fight. He stated that the science behind global warming was just too compelling to ignore and that "Now is the time we need a national mandated framework to deal with climate change." Good going James.

It's no secret that big oil has been hesitant to jump in on the fight against global warming. Other than ConocoPhillips (NYSE: COP) only one other oil company, British-based BP PLC (NYSE: BP), has so far been willing to join the U.S. Climate Action Partnership.

The company hasn't outlined exactly how they believe that they can contribute to the fight against global warming, but plans to release public targets for reducing its own greenhouse gas emissions later this year. Last year the company began producing renewable diesel fuel from vegetable oil and animal fats at a plant in Ireland.

While I view today's announcement as great news for the industry, I do not expect to see the other major players break their policy and join up with the U.S. Climate Action Partnership anytime soon. Those who oppose mandatory regulation of greenhouse gas emissions include Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and the Bush administration.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.