This blog was co-authored with Meghan Demeter, Program Analyst, EDF
With mounting concern about the state of the climate and increasing speculation about natural gas’ role in decarbonizing energy markets, oil and gas companies face growing scrutiny from the public and investors. Some companies are stepping up with pledges to reduce emissions of methane from their worldwide operations.
But there’s a catch. Read more
The credibility of recent industry methane commitments is under the microscope.
One year ago, many of the world’s top oil and gas companies publicly committed to support methane policies and regulations to reduce emissions from the global oil and gas industry. But today, serious doubts are emerging about whether the companies will keep their promise in the face of extreme regulatory rollbacks in the largest oil and gas producing nation in the world—the United States.
At Chevron’s annual general meeting last week, a shareholder resolution calling on the company to improve its methane management and disclosure received a 45% vote. This strong vote follows a majority vote at Range Resources, where 50.3% of voting shareholders supported a similar methane disclosure resolution (up from just 20% in 2013). Oil and gas industry shareholders are sending a powerful message– methane is a material risk that companies must manage to compete in a capital- and climate-constrained world.
Such resolutions are effective at driving change, even for non-majority votes like the 38% of shareholders at Kinder Morgan who supported a methane resolution. For example, last year ExxonMobil’s methane resolution received a 39% vote, and the company responded with a new methane emissions production program, which now includes a quantitative methane reduction target.