Energy principles
We routinely develop company positions on policy issues which we use in our ongoing dialogue with stakeholders and policymakers, guided by our Energy Principles.
- Safety and environmental stewardship are fundamental priorities.
- Energy policies should balance the need for secure, affordable energy with safety and environmental stewardship.
Governments should allow open access to energy resources while promoting international competition. - Governments should not pick winners or losers in the energy market.
- Regulations should not be complicated or duplicative and should balance the benefits of lower GHG emissions with the demand for abundant, affordable energy.
- Consumers should be free to choose energy sources, rather than being mandated to use a specific product.
- Market-based incentives should promote efficient energy use.
- Tax policies should remain stable over the long term and treat producers and consumers fairly.
- Government should invest in early research and development. This is essential for emerging technologies that cannot attract initial private-sector investment.
Climate-related policy
Climate-related policy action can facilitate the development of innovative technology and reduce the overall risks associated with climate. Since we published our first global climate change position in 2003, we have remained consistent in our view that market-based solutions at national and global levels, rather than a patchwork of less efficient regulatory approaches, will be most effective in reducing GHG emissions.
In April 2024, the National Petroleum Council, a federal advisory committee to the U.S. Secretary of Energy, approved a report titled, “Charting the Course: Reducing Greenhouse Gas Emissions from the U.S. Natural Gas Supply Chain.” With input from more than 200 experts, ConocoPhillips led this two-year study that provided consensus recommendations for meaningful actions to reduce emissions from the natural gas system. The report concluded existing policies and actions are expected to result in a 63% decline in methane emissions by 2030 relative to 2020. However, the existing policies will need additional efforts to reduce carbon dioxide which the study expects to increase under the Energy Information Administration (EIA) Reference Case. The greatest reductions will occur under the study’s Technology, Innovation and Policy Pathway (TIP) which implements all recommendations in addition to other measures. Under the TIP Pathway methane emissions will decrease by 70%, carbon dioxide emissions will decrease by 32%, and total GHG emissions will decrease by 52% by 2050 relative to 2020. about the study.
Methane public policy
In the absence of a carbon price in the U.S., the economy-wide direct federal regulation of methane would be effective. We have supported the development of federal regulations for methane emissions from oil and gas exploration and production by providing detailed technical comments via our trade associations and/or during direct communications with agency staff. In addition to those specific recommendations, we have continued to express our general support for a federal regulatory framework that:
- Encourages early adopters and voluntary efforts.
- Incorporates cost-effective innovations in technology.
- Supports appropriate state-level regulations.
Climate change public policy
We believe that effective climate change policy must be aligned with the following principles:
- Recognize that climate change is a global issue which requires global solutions. Economy-wide governmental GHG management frameworks should be linked to binding international agreements comprising the major GHG contributors.
- Result in the stabilization of global GHG atmospheric concentrations.
- Coordinate with energy policy to ensure a diverse and secure supply of affordable energy.
- Utilize market-based mechanisms rather than technology mandates.
- Create a level, competitive playing field among energy sources and between countries.
- Avoid overlapping or duplicating existing energy and climate change programs.
- Provide long-term certainty for investment decisions.
- Promote government and private sector investment in energy research and development.
- Match the pace at which new technology can be developed and deployed.
- Encourage efficient use of energy.
- Foster resiliency to the impacts of a changing climate.
- Avoid undue harm to the economy.
