Shell supports the direct regulation of methane – here’s why

At Shell, we generally don’t make a habit of trying to tell governments how to do their jobs.

I am breaking that rule today to request that the Environmental Protection Agency continue the direct regulation of methane emissions. The agency is thinking about stripping out methane from the 2016 methane rule and regulating a different emission instead. I disagree. I want EPA to keep doing what it’s doing. In fact, I would support EPA regulating methane emissions from existing oil and gas assets as well.

Let me explain why someone like me, the President of Shell Oil Company, supports a regulatory approach some others consider controversial.

What exactly is methane?

There are compelling reasons to prevent methane from leaking from our facilities. For one thing, it harms the environment. Methane is a greenhouse gas that has a far more potent impact on global warming than does carbon dioxide. For another, to put it bluntly, failing to capture methane means Shell has less product to sell. And given the scale of Shell’s investment in natural gas as the cleanest-burning hydrocarbon, our view is that any methane emissions – across the industry – hurts our business, because it hurts the reputation of natural gas.

When regulation spurs innovation

Shell was one of the first oil majors to signal support for the EPA regulating methane from upstream oil and gas sources. Engaging with stakeholders in preparing for the regulation helped deepen our understanding of how methane behaves in oil and gas fields. The regulation, itself, has led to more efficient production and better mitigation technology, all of which have helped us to reduce methane emissions from our operations. Because of the methane regulation, industry has raced to develop better, more affordable methane technology such as airborne imagery.

Why this regulation makes sense

Shell recognizes methane emissions as a critically important climate issue. That’s why EDF called Shell “the company with the world’s most stringent methane target.”

At Shell, we simply believe that if we say we support reducing methane emissions, we have a responsibility to support a regulation designed to reduce methane emissions. Irrespective of any changes the Administration makes, Shell will continue taking voluntary action on this issue. Last year we took the bold step of declaring a methane intensity target of below 0.2 per cent by 2025.

Strong, targeted regulations . . . can improve environmental performance across the industry while spurring innovation. It is an essential step on a path to a more sustainable future.

We are proud of this status, but we want to do even more. Strong, targeted regulations, where appropriate, can improve environmental performance across the industry while spurring innovation. It is an essential step on a path to a more sustainable future.