A U.S. change in office means one thing is for certain: uncertainty for lower-carbon and clean energy regulations.

But when it comes to carrying out emissions reduction plans, panelists at a recently-held energy conference urged companies not to get distracted.

“There’s enough rules on the books that we know we have to do these things, and don’t let that blind you,” Paul Espenan, senior vice president of environmental health, safety and risk management for Diversified Energy, said on potential changes in the regulatory and compliance landscape during Hart Energy’s DUG Appalachia Conference & Expo.

While some moderation or explanation of existing regulations is necessary, the industry should see what it can live with, he added. “I think that’s a better approach than just trying to fight it for the fight’s sake.”

As some energy companies voluntarily pursued emissions reductions plans, given that molecules outside the pipe equate to lost revenue potential and missed opportunity to meet energy demand, the Biden administration led a massive crackdown on emitters in an effort to slow global warming.

Earlier this month, the U.S. Environmental Protection Agency finalized methane fees for emitters in the oil and gas industry. Other regulations put in place included standards to lower emissions from high-emitting equipment, mandated monitoring of methane leaks from well sites and compressor stations and directives to eliminate routine flaring of natural gas produced by new oil wells.

With a more oil and gas-friendly Donald Trump in the White House and a Republican-dominated Congress, the energy community is abuzz with speculation about the likelihood of easing stringent emissions regulations. However, many companies aren’t planning to ditch their emissions reductions plans in an effort to claim premiums for cleaner products and compliance-ready natural gas for new EU import regulations.

‘Impervious to regulation’

A clear desire for cleaner natural gas remains. While the greenhouse gas emissions profile of natural gas isn’t as low as renewables such as solar and wind, natural gas produces fewer emissions than its fossil fuel counterparts.

“What we’re seeing is that a lot of the compliance is driven by the consumers,” said Oleg Mikhailov, CEO and co-founder of Xplorobot, which provides methane detection, quantification and mitigation technology. The “European Union says, I want to clean gas, that’s fine, as long as they’re ready to pay for it. Hallelujah. We should be selling them the clean gas at the premium. Japan will go the same way.”

The same can be said for Big Tech companies looking for cleaner sources of energy to power data centers.

Xplorobot’s camera takes pictures fives time per second with methane measurements taken 10 times a second, Mikhailov said.

“As the operator scans the pipe, flanges, valves, et cetera, the device accumulates the information not only about the leak points that exist, but it actually records every flange and every valve that has been scanned and proven to be tight,” he explained. “The data goes into the Cloud. And then machine learning algorithm actually identifies each flange individually and catalogs them. So, we have a product that allows you to build an inventory of your components and proves zero emissions on the component level.”

Diversified Energy is among its customers.

A digital record of compliance for the equipment can be blockchain and attached to the physical molecule of gas, he said, adding that can be provided to MiQ, for example, for certification or set up as a data room for any potential buyer.

When producers take care to repair leaks quickly, halt routine flaring and venting and regularly check for leaks and emissions sources, among other efforts, the product is considered responsibly sourced and can be certified as such.

Companies such as MiQ, an independent not-for-profit, are focused on methane emissions abatement and certifying responsibly produced gas.

“We were designed to try and be impervious to changing [regulations] and with the philosophy that all these things can work together. They can work in an integrated way, but a market-based solution is one really, really important ingredient; one really, really important driver,” said Lara Owens, director of science and technology for MiQ. “And certification that can apply to investments, that can apply to stockholder price. These are things that also are going to be impervious to regulation.”

The ‘great equalizer’

Emissions management remains important, panelists agreed.

At Diversified, Espenan said the operational mindset is to be deliberate in efforts to keep the molecule in the pipe and get it sold. “You have to be strategic in how you’re going to reduce emissions and it takes a while to accomplish this. So, you have to have a bias for action,” he said.

There are thousands of paths that require monitoring, Mikhailov said, highlighting Xplorobot’s technology he says is 10 times cheaper than using an infrared OGI camera and doesn’t require special training. The technology enables customers to detect, repair and certify in one visit, he said.

MiQ creates standards that show how high performance looks and then helps producers get there. One of the attributes that makes MiQ’s program strong is it gives operators details such as to what precision and accuracy levels their efforts must reach, Owens said.

Having laid the groundwork and gained recognition for its technical standards, MiQ is now focused on “making sure that the gas buyers fully understand the importance of that. … This isn’t a greenwashing exercise,” she said. A goal is to make sure buyers understand the value and emissions reductions obtained with a certification.

Starting in 2027, natural gas imported into the EU must comply with the EU’s methane emissions intensity standard. The regulations require measurement, monitoring, reporting and verification of emissions associated with the production of natural gas imports.

The U.S. is the largest supplier of natural gas, in the form of LNG, to Europe. Data from the U.S. Energy Information Administration show the U.S. supplied 48% of Europe’s LNG imports in 2023. That’s 7.1 Bcf/d.

What’s great about the certification concept and markets-based approach, Owens said, is regardless of location or the administration, “markets are the great equalizer and are going to be a persistent driver regardless of who’s in office,” Owens said, noting companies can use MiQ certification for compliance with EU methane rules. “Right now, markets are going to be the great equalizer. They’re not changing, they’re not going away. In fact, the demand is only going to increase.”

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