Four Main Takeaways From the U.S. Leaving the Paris Agreement
By Chris Nichols, Content Strategist
President Trump’s recent decision to withdraw the U.S. from the Paris Agreement is still the topic of much discussion among environmental advocates, the leaders of other nations, state houses and mayors.
The debate as to what it all means and whether the move was the right one isn’t going to cease. Nonetheless, it’s possible to offer a few projections that seem reasonable. That’s exactly what Allegro Chief Strategy & Customer Officer Michael W. Hinton has done in a recent column published in Oil & Gas Financial Journal.
Here’s a summary of the key points he says we need to take away:
-For oil and gas companies based in the U.S., leaving the Paris Agreement may ease a certain amount of compliance and cost uncertainty in the near term. That said, even though the accord has never had a formal enforcement structure, thoughtful planning with regard to regulations in other nations, and the potential for changes at home, will still be necessary.
-At least some crude oil and natural gas producers will continue to tout their commitment to the environment. Why? Going green is viewed as good business, for one. Plus, anything that works in the favor of natural gas may be to the detriment of competing coal, for another.
-Even though we’ll have to rely on coal-fired plants for several more decades for at least part of our electricity, the fuel may have a difficult time re-emerging as a preferred power-generation source – with or without the Paris Agreement. Natural gas, combined with renewables, appears set to keep coal at bay.
-Finally, U.S. emissions, already down in recent years, may well continue to decline based on market forces. Assuming gas, wind, solar and hydro keep pushing out coal, there’s every chance emissions will drop further.
Read the full column at Oil & Gas Financial Journal: Leaving the Paris Climate Agreement.