ExxonMobil and Suncor argue that climate change policy is strictly a federal matter, contending that state-level litigation effectively imposes an unauthorized carbon tax. They warn that a ruling in favor of Boulder County could trigger a wave of similar claims, potentially bankrupting the industry. Boulder County officials maintain their goal is limited to seeking compensation for specific local environmental damages rather than reshaping national energy regulation.

The industry's bankruptcy defense echoes historical patterns seen in asbestos litigation, where companies faced massive liabilities for health impacts. However, bankruptcy rarely results in the total cessation of operations for large firms. Instead, these entities typically reorganize under court supervision. If oil companies were held liable for hundreds of billions in damages, the most likely outcome would be a transfer of equity. Shareholders and executives would face significant losses, while control of assets could potentially shift toward the municipalities and states that brought the successful claims. This structural shift, rather than the industry's total collapse, is what currently drives the intense opposition from energy executives.