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Adapting to regulatory changes is nothing new for the oil and gas industry , so when the new Methane Emissions Reduction Program ( MERP ) was introduced in 2022 ’ s Inflation Reduction Act , the industry braced for yet another transformation . But MERP is decidedly more challenging than previous evolutions in the regulatory landscape . Applicability and compliance are inexplicably intertwined with existing and evolving federal rules and programs , making it harder and more complex than ever to determine real risks and responsibilities .
To help guide oil and gas companies through these changes , my organization , Cority , recently sought input from Christi Wilson , an environmental and sustainability expert at Trinity Consultants . Wilson , who has dedicated her entire career to helping companies in the energy sector advance their decarbonization journeys , shared practical strategies for navigating MERP while accelerating efforts toward true sustainability .
1 . Think like an energy transition company
In an era dominated by the imperative of sustainability , Wilson advises traditional oil and gas companies to think like an energy transition company . This means strategically positioning their products and services to excel in a low-carbon economy by embracing both a long-term approach to planning and a focused effort to achieve organizational objectives . Industry leaders should identify and implement changes today that will deliver consistently over the next two , five , and ten years , looking beyond immediate gains and compliance obligations to consider sciencebased targets and reconciliation of top-down and bottom-up approaches . This will help companies make the difficult shift from aspiration to action .
Despite the obvious challenges , Wilson insists the obstacles are opportunities for innovation and transformation . She asserts that companies adopting this approach have found surprising ways to adapt and excel in their new , low-carbon identities .
2 . Maximize the quality and quantity of data collection
A critical step towards minimizing obligations under MERP and achieving a low-carbon identity requires maximizing the quantity and quality of the data you ’ re collecting . Oil and gas companies have a wealth of potential data at their disposal , but if they aren ’ t effectively collecting and processing everything from site-specific emission factors and source types to fugitive leak data , they are not taking full advantage of the potential actionable insights this data holds for charting an intelligent path into the future .
Wilson emphasizes that integrating advanced measurement systems and empirical data with specialized software provides realtime and more precise emission calculations . This enables significantly more informed emission-reduction decisions , reducing risk and increasing the likelihood for success . What ’ s more , using technology to streamline the data collection process ultimately allows companies to redirect their time to data analysis , offering more opportunities for potential emissions reduction .
3 . Create data-driven decisionmaking models
With improved data collection , companies can formulate data-driven decision-making models that can completely ( and sometimes surprisingly ) reshape how an organization approaches emission management challenges and opportunities .
Data-driven decision-making models allow organizations to use both historical and predictive data to create different scenarios that can aid significantly in budgeting , operating cost allocation , and liability forecasting . You can then evaluate mitigation strategies and rank
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