The breathing space created by the Trump Administration has led to a healthy boost in oil and gas production in the US, which has shaken up the global market. Once mighty OPEC has lost the leverage it used for decades against industrial countries lacking their own resources. Even Qatar abandoned the formerly robust association and pledged billions in investment in both oil and gas production in the US.Also, expanding pipeline capacity led to last year serving as the highest oil production year ever in the US.
Much of the impetus in the market comes from confidence that President Donald Trump will not impose unreasonable regulations on the industry, especially in the environmental sector. With a production-friendly president in the White House and US fossil fuel pollution emissions expected to drop this year, should the industry shift resources away from advancing environmentally friendly technology, techniques, and products? This includes everything from drilling to oil rig cleaning services. Or, should the industry continue to push forward to continue the gradual improvement in environmental practice?
Should the Oil and Gas Industry Concentrate on Non-Environmental Issues for Now?
Some may argue that substantial improvements in emissions combined with a reduced threat from the federal government mean that the industry can focus on different priorities. The industry has embarked on a plan of upscaling production and distribution and needs an infrastructure capable of reliable delivery. Like federal and state highways, however, age and neglect have made repairs and replacement necessary.
There are also the foreign policy benefits from heightened exports. As Russia lurches back into an adversarial position against the US, cheaper American gas can undercut the industry that pays the Bears bills.
Industry resources are not unlimited. Shifting some away from environmental advancement, at least in the short term, can help to set the foundation for future growth.
Environmental Advancement Protects the Industry in the Long Term
Reality, however, dictates that the motivation of those who oppose natural gas and oil development will not simply disappear. A smart long-term strategy for the industry should lie in enhancing environmental performance as much as possible. This extends even to the use of products such as degreasers and other products and processes .
Continuing to strive toward cleaner extraction and production, especially during the Trump presidency, will demonstrate that the industry holds a serious commitment to improving itself.
Why the US Oil and Gas Industry Needs to Keep Striving for Environmental Improvement
For both long and short-term sustainability of the industry, the industry needs to focus on both infrastructure and environmental advancements. The US oil and gas industry needs to invest more in infrastructure. Additionally, the emerging US dominance of world oil and gas markets takes power and leverage out of the hands of other producers who have used past American weakness to their advantage.
However, the good times can end with the passage of a single law or the issuing of an executive order. A future president and/or Congress can pass laws and regulations that can change the US market dramatically.
Luckily, todays economy allows for a somewhat expanded pie compared to previous years. Resources are available to gradually push forward on multiple fronts, ensuring that we can continue to safely and effectively supply America and much of the world with ample and cheap energy while also improving our own environmental protection standards.