Over the past few weeks, companies like BP, Equinor, Exxon and Shell have publicly stated their support for direct federal regulation of methane. It is not every day that a company asks for more rules rather than less. What’s one of the driving forces behind these public position reversals? Investors.
Investors have been an important pressure point in moving these companies to their new policy positions, and they continue to wield their influence to encourage more companies to join.
A new rule goes into effect today that will help protect California’s groundwater.
The rule applies to injection wells – the underground facilities that enable enhanced oil recovery and the long-term disposal of the oil industry’s wastewater. California has around 55,000 oilfield injection wells, nearly one-third of the nation’s total, and the state’s oil industry injects over 100 billion gallons of water a year into them. The Division of Oil, Gas and Geothermal Resources (DOGGR) came under scrutiny in recent years when the U.S. Environmental Protection Agency (EPA) discovered state regulators accidentally allowed thousands of wells to pump oilfield wastewater directly into drinking water aquifers, along with other program deficiencies.
The business and environmental case for electrifying large electric vehicles – such as buses, delivery trucks, garbage trucks and regional “day cab” tractors used at ports – is gaining traction, and there’s good reason to be excited about this momentum.
FedEx recently announced that it’s adding 1,000 EV delivery vans to its fleet. Amazon announced a $700 million investment in an electric truck start-up and then pledged to have half of its deliveries be zero-emissions by 2030. And in California, all new municipal buses will be zero-emissions within a decade, the result of a bold new program adopted by the state’s Air Resources Board last year.
As companies and local governments move from piloting electric fleets to full deployment, their climate potential is becoming clearer. For example, a recent Bloomberg report found that by the end of 2019, a cumulative 270,000 barrels a day of diesel demand will have been displaced by electric buses globally. That’s more than three times the displacement by all the world’s passenger electric vehicles.
In a new resolution on the European Union’s (EU) net-zero strategy, the European Parliament once again acknowledged the political urgency for legislation on what has, to date, been Europe’s climate blind spot: methane emissions. This vote on March 14, is the fourth significant development in the space of the last six months, raising expectations that the EU is finally embracing a major opportunity to better characterize emissions of methane and take action to unlock cost-effective mitigation.
Methane is a short-lived climate pollutant. Increases of methane in the atmosphere from human activity account for more than 25 percent of the warming we currently experience. According to the Intergovernmental Panel on Climate Change (IPCC), over a 20 year period, methane has a global warming potential (GWP) up to 87 times higher than CO2. While methane breaks down in a decade, carbon dioxide sticks around for more than a century. To avert climate catastrophe in the near term and long term, we must reduce both.