Exxon Says EU Methane Rules Would Add 13% to Refiners’ Oil Costs

Article content(Bloomberg) — European Union rules intended to curb emissions of methane, a potent greenhouse gas, could add about 13% to the cost of crude oil imports and deal a hammer blow to the bloc’s industrial base, Exxon Mobil Corp. warned ahead of a meeting of leaders this week.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentAbout 80% of the EU’s current imports of crude oil would not satisfy the bloc’s methane criteria in 2027, Matt Crocker, Exxon’s president of product solutions, told Bloomberg. Securing alternate supplies from the smaller pool of compliant crudes would add about $9 to the average price the bloc pays per barrel, he said.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentA barrel of Brent crude oil, the primary benchmark in Europe, current trades near $70.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe warning comes the day before key industry executives meet with EU officials, as well as French President Emmanuel Macron and German Chancellor Friedrich Merz in Antwerp to discuss economic competitiveness.Article content“We’re very supportive of reducing methane emissions and are very active in the US, but what European policy is doing is taking that into an extreme,” Crocker said in an interview in Brussels on Tuesday, citing figures that have been presented to the European Commission, the bloc’s executive branch. “It’s about having policies that are sensible, proactive, and we can work through, rather than having these anti-competitive policies that just companies won’t be able to meet and comply with.”Article contentIt’s not the first time the EU’s methane-emissions rules have found themselves in the crosshairs of US producers. Previous complaints largely focused on easing the burden on imports of liquefied natural gas from the US — something the EU has promised to address through a “simple and pragmatic” implementation of regulations.Article contentArticle contentNext year, oil and gas imports will have to be aligned with the EU’s rules on monitoring, reporting and verification. The commission will also publish methodology for measuring methane intensity. By 2030, penalties will be issued for imports that are above a methane-intensity threshold.Article contentA promise made by the EU last year to buy $750 billion of American energy imports over three years helped clinch a trade deal with President Donald Trump. Since then, relations then have been strained by his demands to take over Greenland and threats to slap tariffs on those European countries who resist. Still, the US is set to remain a significant supplier of fossil fuels to Europe as it ends its dependence on imports from Russia following the invasion of Ukraine.Article contentEurope’s high energy prices have been blamed for shuttering key heavy industries and will be a major focus of debate when EU leaders meet with industry in Antwerp on Wednesday. There will be a retreat for the bloc’s 27 member states at the Alden Biesen castle in Belgium the following day.Article contentAlmost a third of Europe’s refineries have either closed or been converted to other uses since 2009, according to FuelsEurope, an industry lobby group.Article content“Almost day by day, there are closures, whether it’s companies leaving or plants getting shuttered,” Crocker said. “We could well be beyond the point of no return.”Article contentTrending As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News John Manley: Why Canada needs to play it cool on CUSMA — and keep its options open Economy 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate Posthaste: Debt loads hit record as Canadians in financial distress pile on the loans News WestJet, Air Transat, Sunwing join Air Canada in suspending service to Cuba Airlines Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News John Manley: Why Canada needs to play it cool on CUSMA — and keep its options open Economy 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate Posthaste: Debt loads hit record as Canadians in financial distress pile on the loans News WestJet, Air Transat, Sunwing join Air Canada in suspending service to Cuba Airlines