The President announced his Climate Action Plan at a speech at Georgetown University on June 25. The President also stated that he would reject the Keystone XL pipeline project if it “significantly exacerbates the problem of carbon pollution.” Pundits expect this language means that he will approve the pipeline permit.
The President’s Climate Action Plan has dozens of proposed actions to cut greenhouse gas emissions in the US and globally, encourage renewable energy and energy efficiency, and strengthen infrastructure to withstand the impacts of climate change.
Proposed actions that may impact oil and gas exploration and production include:
- EPA will develop carbon pollution standards for new and existing power plants.
- Streamline permitting process for electricity transmission projects to strengthen the grid.
- Increase federal investment in both renewable and advanced fossil energy projects. Solicitation should be released fall 2013. Carbon capture and storage (CCS) and possibly CO2 injection for enhanced oil recover (EOR) may be included.
- Develop a second round of heavy-duty vehicle fuel economy standards for 2018. This could encourage use of natural gas.
- Develop an inter-agency methane emissions strategy that will assess current emissions data, address data gaps, identifying technologies and best practices for reducing emissions, and identifying existing authorities and incentive-based opportunities to reduce methane emissions.
- Work to accelerate gas pipelines to reduce flaring in areas such as the Bakken play.
- Internationally promote fuel-switching from coal to gas for electricity production, and encourage the development of a global market for gas.