Regulations and Policies
In November of 2022, the EPA released new regulations to combat the release of air pollutants such as methane, VOCs, and benzene by both existing and new oil and gas operations. Another decisive move in 2023 by EPA enacted new policies to crack down on water pollution from coal plants. In these cases, oil and gas companies and coal plants would need to closely track pollutants and report numbers under the threshold to stay in operation. Some experts are expecting many coal plants to either switch to burning natural gas – the policy’s proposed alternative – or completely shut down to avoid the increased expense of compliance.
Compliance is growing more complicated for energy companies as the spotlight shines brighter and hotter on climate change and environmental governance. In this case, cracking down on tracking the types and amounts of pollutants in the wastewater would add even more to energy companies’ plates, both in labor and expense. For companies who have not yet streamlined processes, educated and trained employees on environmental, social, and governance (ESG), or implemented advanced tracking and reporting with the latest technology, the goals of compliance regarding new environmental laws feel increasingly further out of reach.
Environmental Policies and Commitments
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Detailed environmental policies and commitments can feel like an added burden to energy companies, as they not only require extensive capabilities for tracking KPIs but also for reporting results to the public, agencies, and investors. Despite the heavy load of ESG, meaningful and comprehensive ESG programs are an essential part of attracting and retaining investors, expanding and claiming new markets, and more. These programs are a pledge to monitor and reduce environmental impact, assuring discerning consumers who are becoming wiser about their energy usage.
As the focus on ESG and the expense of compliance grow, partnering with a strong digital transformation company with experience in oil, gas, and utilities would provide the support needed to comply with global ESG reporting requirements. This digital partner, with a commitment to the environment, like Perficient, would modernize processes and systems to enable advanced data tracking and reporting, resulting in greater transparency and improved compliance.
Improvements and Benefits
With streamlined and improved internal processes and solutions, energy companies can easily create and assess reports built on data regarding water usage, waste management, and contributions to carbon emissions. By capturing data in real-time and building comprehensive reports, energy companies can predict and plan new courses of action according to trends. With complete control over granularity and allocation, making improvements and scaling becomes effortless. Tax reporting, audits, and reconciliations become efficient if not completely automated.
Other benefits include replacing outdated and siloed systems and manual work with seamless and convenient tracking and reporting that saves money in the long run. Buyer and investor confidence will also grow as your reputation and pricing are protected. Ultimately, these initiatives will help energy and utility companies stay relevant and in step with a changing world that increasingly prioritizes best practices for environmental impact.