Natural Gas is Making Risky Energy Policy Moves

 The European Union and the United States have lately announced strong plans to reduce greenhouse gas emissions and assert their global leadership in the battle against climate change. These plans call for stricter methane regulations as well as investments in carbon capture and storage technology. These measures hold considerable promise for assisting Europe in reducing its reliance on coal and other dirty fuels while meeting its climate goals.

Gas is the most environmentally friendly fossil fuel, emitting less carbon emissions than coal. Because of recent technology developments, the development of unconventional natural gas deposits is also becoming less expensive. This fuel is a bridge fuel to a new energy economy for the twenty-first century. With the potential to substitute coal, the EU should prioritize LNG port building.

The EU has committed to reducing methane emissions from the domestic energy sector by 2030 and is working with international partners to achieve this goal. However, while the EU and its allies have made progress, there is still much more to be done. Even the most ambitious plans could be jeopardized if the EU maintains current levels of Russian gas imports. Furthermore, the EU Commission has stated that it will not allow gas imports from nations who do not track methane emissions.

California has also taken significant steps to make buildings more energy efficient. The addition of a compliance pathway for all-electric low-rise structures by the energy commission is a significant step forward. The state is presently exploring additional building electrification measures, such as forcing new structures to be entirely electrified. This provision does not outright prohibit natural gas, but it does make electric heat pumps more cost-effective and ensures that new buildings are wired for future all-electric equipment.

Consumers, regulators, investors, and the environmental community have all put pressure on the oil and gas business to do better. Operators are increasingly understanding the need to offer energy assets in a sustainable manner in response to this challenge. It is not only the correct thing to do, but it is also the only route forward.

China and India have also announced programs aimed at reshaping energy demand. The transition to a low-carbon economy must be global, and such measures will almost certainly involve gas. However, the change will be incomplete until a plan for the transition to clean energy is developed.

To ensure the success of the transition to renewable energy, oil and gas firms must take decisive steps to tackle climate change. While net-zero emissions are still a long way off, an 80 percent decrease is a feasible target. The energy transfer requires the activation of all three sets of operations. The oil and gas business has a one-of-a-kind opportunity to steer this process.

As the globe transitions to a low-carbon economy, oil and gas corporations are rethinking their business models. They can invest in electrification infrastructure to meet end-user demand while also assisting upstream activities in reducing GHG emissions. This allows the industry to remain competitive.