With the enactment of the New Clean Air Amendments, the regulations being promulgated nationwide on both state and local levels for inclusion in state implementation plans are relying to a large extent on the use of air emissions trade programs similar to those developed in the state of California. Exploration and production companies will have to operate and develop enhanced recovery techniques and maintain competitiveness in the world market while complying with the emissions trading regulations. In addition, production companies represent a substantial offset pool which will project them into the broad-based business development cycle.
The emissions trading or offset programs being proposed are taking various forms; some are informal, some are contract-based, and some are certificate-based. Each of these trading program methodologies or philosophies are examined. The broad experience in the state of California is utilized to identify beneficial aspects of the programs.
The emerging offsets trading regulations are analyzed. The optimum logic analysis results in a call for a standardized offsets trading scenario which will allow for maximum progress towards attainment of the Clean Air Standards within a functional business environment.