Page 7 - NorthAmOil Week 47 2021

NorthAmOil COMMENTARY NorthAmOil

(Left to right) Mexican
President Andres
Manuel Lopez Obrador,
US President Joe Biden
and Canadian Prime
Minister Justin Trudeau
are trying to revitalise
mutual co-operation.

US, Canadian and Mexican policy moved one step closer to establishing disincen-
In the US, the Environmental Protection Agency tives for methane emissions, though it will still
(EPA) recently proposed a Clean Air Act rule face a political battle over this issue. On Novem-
aimed at sharply reducing methane emissions ber 19, the same day as the North American
from oil and gas operations. Commenting on the summit, members of the US House of Repre-
rules earlier this month, investment bank Mor- sentatives voted 220-213 to approve the Build
gan Stanley noted that the US oil and gas indus- Back Better Act, a $2 trillion spending bill that
try had already made “significant” reductions in calls for imposing a tax on methane emissions.
methane emissions in recent years, with many of The measure will now move on the Senate, as it
the larger producers having set targets in excess must pass in the upper chamber before it can be
of the Biden administration’s goals. signed into law.
Ottawa, for its part, unveiled a new goal in Canada, for its part, recently pledged to invest
October, saying it aimed to cut methane emis- $10mn in the Climate and Clean Air Coalition
sions from oil and gas by 75% on 2012 levels by (CCAC) Trust Fund over the next five years.
2030. Few additional details on how the goal was This plan was announced on November 9 by
to be achieved were announced at the time. Canada’s Minister of Environment and Climate
Meanwhile, methane emissions – and cli- Change Steven Guilbeault, during a meeting
mate change more broadly – have been less of with US Special Presidential Envoy for Climate
a priority for Lopez Obrador, who has focused John Kerry and Ghana’s Minister of Environ-
on ramping up Mexico’s production of crude oil ment, Science, Technology and Innovation
and refined petroleum products instead. Mexi- Kwaku Afriyie. The officials were attending the
co’s state-owned Pemex has come under fire for Climate and Clean Air Ministerial meeting,
its record on gas flaring – and on environmen- which took place shortly after the end of COP26.
tal, social and governance (ESG) issues more The Biden
broadly. A study released by the Environmental Practical obstacles
Defense Fund (EDF) this year concluded that It remains to be seen whether last week’s high- administration
gas-processing facilities owned by Pemex were level meeting – or the high-level statements has moved one
emitting methane at 10 times the rate being uttered by Trudeau, Biden and Lopez Obrador
reported by the Mexican government. at the meeting – have any significant impact. step closer to
In the US, at least, climate commitments have
Other plans the potential to founder as a result of practical establishing
Despite this lacklustre track record, Lopez Obra- obstacles in the form of political battles. Mem-
dor did talk about climate change during the bers of the US Senate are hoping to secure the disincentives
summit. bill’s passage through the reconciliation pro- for methane
According to the statement issued by the cess, which requires only a simple majority for
White House, the Mexican president and his approval. However, that simple majority may be emissions.
US counterpart outlined their visions of North difficult to achieve.
America’s future energy strategy, including The proposed methane tax has drawn strong
plans for addressing climate issues. “Both noted opposition from oil and gas industry groups,
their commitment to work closely together and Republicans don’t favour it either. But with
to accelerate North American deployment of the upper chamber split, for all practical pur-
renewable energy, including catalysing finance poses, evenly between Republicans and Dem-
and technology in service of renewable energy,” ocrats, the legislation could falter – or pass
the statement said. only with the help of a tie-breaking vote from
Meanwhile, the Biden administration has Vice-President Kamala Harris.™

Week 47 25•November•2021 www. NEWSBASE .com P7