The American Petroleum Institute has come out in favor of direct federal regulation of methane emissions from oil and natural gas operations, and said it was willing to work with the new administration on a "regulatory regime that is sensible, workable, and promotes further technological advances and innovation." "This is a new position for API, but we think given where the industry is at this time and the continued importance of reducing methane, it was critical we update this position as the administration changes," said API President and CEO Mike Sommers.
It's much better to work with the new Administration on the inside, than being outside and having little influence.
Agreed. All O&G majors have slowly been moving to embrace some elements of a lower carbon future. Now they will take an additional step or two and try to convince the current administration, and the public, that they accept the reality of climate change and can be a partner in helping meet emission targets. It's not only a recognition that there will be new regulations but a concern for capital markets and shareholders who have been signaling their displeasure with C-suite managers for some time now. It is stunning to think how long most of those energy companies have been doubling down on strategies that served to decimate their market value and lead to massive write downs of reserves. If it were not for dividends, many investors would have bailed five years ago when it became obvious that the industry was incapable of managing supply to demand.