Impact of Oil & Gas Industry on Environment
Oil and gas companies lately have realized that there are a number of reasons to take action on Global Warming, including the multiplication of climate-related policies and regulation, competition from low-carbon generating energy resources, pressure from investors, and changing beliefs of society.
The reality is that as much as we know about fossil fuels denial and acceptance, we’ve really found those skeletons in the holes just by looking through a tiny keyhole – everything we know is based on just a few hundred documents gathered from various sources.
The world faces a dual challenge: meeting the growing demand for energy while also reducing environmental impacts, including the risks of climate change resulting in global warming. The major driver of climate strategies at oil and gas companies in the economic competitiveness of renewable and low emissions energy resources, clean energy technologies, particularly power generation technologies such as wind and solar, have experienced rapid cost declines in the past few years.
Leading companies are engaged in creating and executing a broad strategy to move from being an oil and gas company today to be an energy services company tomorrow. These companies are seeking to reduce their operational emissions, invest in technology development, set emissions reduction goals, and diversify their supply into renewable energy. They may be mainly focusing on one or two individual technologies, but they tend to spread their reach over many categories. They also tend to be companies motivated by the idea that the energy system is transforming in a way that will challenge the oil and gas industry at a fundamental level. These tend to be companies taking the most ambitious steps to investigate new business opportunities.
Moreover, launching a strategy to lower and rapidly cut pollution from the power plants and cars that run on the industry’s petroleum. To compensate this, an alternative known as Natural Gas – a fossil fuel that emits heat-trapping CO2 is helping to slow climate disruption by providing an alternative to coal.
To make the society aware of the alternative to coal, leading investors have started investing in the advertising sector of Oil & Gas. These include, a friendly-looking older woman in a hard hat beams at the camera and says, “Thanks to natural gas, the US is leading the way in reducing emissions,” reads the advertisement. The leading build Exxon’s YouTube page touts research on making biofuels from algae in order to cut climate pollution.
The renowned American Petroleum Institute (API) recently released a statement saying, “API could back some legislation to incentivize technology that would capture CO2 so that it cannot enter the atmosphere and hence urging House Committees to demand more information from oil companies about their influence over public policy regarding the implementations made on their behalf to curb Global Warming”.
In general, oil and gas companies are concerned about these policies affecting their businesses because, the design, taxes and mandates for low-carbon energy resources would reduce demand for their petroleum products, and subsidies can increase demand for alternatives.