THE IMPACT OF U.S. ENVIRONMENTAL POLICY ON THE FINANCIAL STRATEGIES OF OIL AND GAS COMPANIES

Abstract

The article examines how U.S. environmental policies, such as the Clean Air Act and the Paris Agreement, influence the financial strategies of oil and gas companies. Focused on laws like the National Environmental Policy Act (NEPA), these policies mandate environmental impact assessments before initiating major projects, helping to mitigate potential risks. Carbon Capture, Utilization, and Storage (CCUS) plays a crucial role in reducing greenhouse gas emissions by capturing CO₂ from power plants and industrial facilities, often storing it in depleted oil and gas reservoirs. The article also analyzes Shell's carbon capture and storage project in Pennsylvania as a case study, demonstrating policy effectiveness in reducing emissions while maintaining economic growth. Shell’s carbon capture and storage project in Pennsylvania serves as a case study demonstrating the effectiveness of such policies in reducing emissions while supporting economic growth. The article highlights tighter environmental regulations, rising fiscal pressures on emissions, and increasing public demand for cleaner technologies as driving forces behind the industry’s adaptation. It discusses how proactive adoption of eco-friendly technologies enhances corporate reputation and opens opportunities for accessing government funding and entering new markets. The article states that balancing economic interests with environmental responsibilities remains challenging amidst fluctuating energy demands and market uncertainties.