API on NPC Studies: Industry, Policy Collaboration Essential for Accelerating Energy Innovation and Emissions Reductions

WASHINGTON, April 23, 2024 – The American Petroleum Institute (API) today released the following statement from President and CEO Mike Sommers on the National Petroleum Council (NPC) reports on Greenhouse Gas Emissions and Hydrogen:

“Today’s reports reinforce the critical role of America’s energy workforce in powering our economy, supporting U.S. security and driving innovation needed to reduce GHG emissions – both now and in the future. The U.S. oil and natural gas industry is leading the world in accelerating methane detection, reduction and reporting technology and is poised to unleash low-carbon hydrogen energy at scale.

“To fully leverage America’s energy advantage and advance climate progress, continued collaboration between energy producers and policymakers will be essential. These studies lay important groundwork for harmonized federal methane regulations and for a clear and consistent permitting process for energy infrastructure, and we look forward to working with both federal and industry stakeholders and communities across the country to advance these recommendations.”

Reducing methane emissions is a priority for the U.S. oil and natural gas industry to address the risks of climate change. Methane emissions from U.S. oil and natural gas operations have fallen 37% since 2015 while energy production increased 39% in the largest U.S. basins. Industry-led initiatives like The Environmental Partnership, whose members make up nearly 70% of U.S. onshore oil and natural gas production, are helping to accelerate progress on methane emissions reductions by driving collaboration and sharing best practices across the industry. API also supports cost-effective policies and direct regulation of methane for new and existing sources and is committed to working with EPA to ensure a regulatory frameworks that helps advance the progress made to date.

The U.S. oil and natural gas industry is also a leader in hydrogen - as producers, consumers and transporters of hydrogen. America’s oil and natural gas sector is expected to play a significant role across the low-carbon hydrogen value chain, supporting the administration’s stated goal of producing 10 million metric tons (MMT) of hydrogen by 2030 and 50 MMT by 2050. With the right policies, the U.S. hydrogen economy are projected to generate 700,000 jobs and an economic benefit of $140 billion by 2030, according to estimates, while driving down CO₂ emissions in hard-to-electrify sectors such as heavy industry, aviation, steel and cement.

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

###