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White House aims to enforce new sustainability standards in American aviation

President Biden’s administration pledges to reduce aviation emissions by 20% by 2030, focusing at the same time on creating new jobs in the industry. The key to success in this venture is sustainable aviation fuel (SAF).

This move comes to light as a means to achieve promised climate goals and bring forward carbon-free aviation before 2050 as part of President Biden’s Build Back Better Agenda. Since modern American aviation stands for 11% of all transportation-related emissions in the region, this share of emissions will only continue to grow without appropriate actions as the volume of commercial or not flights steadily increases. And prioritizing fuel produced from waste cooking oil, plants, and animal fats may be just the right answer, considering SAF could cut up to 80% of aviation emissions.

Such problems demand comprehensive measures, and for sustainable aviation to be achievable, the industry requires efficient innovations not only in aircraft technology but also in fuel extraction. And while hydrogen and electric-powered aviation may come to fruition in the future, bold decisions especially for long-distance travel need to be taken now.

The new SAF tax credit supports a significant reduction of greenhouse gas emissions up to 50% by cutting costs while rapidly scaling domestic production of sustainable fuels for aviation. This credit will work in concert with measures taken by the aviation-related industries to reduce their carbon footprints.

The White House's commitment to the transformation of aviation stems not only from the desire to address ecological challenges, but also to create union jobs, aid airport workers in improving environmental quality, and open rural economic opportunities to use sustainable fuels derived from a wide range of feedstocks and pathways. Aviation is changing toward a zero-carbon sector. To make this transformation, however, aircraft manufacturers, airlines, fuel producers, airports, and the Federal government will have to work together. And with the upcoming executive actions, new federal programs, and private sector commitments, the industry may very well soon be on its way to that cherished goal.

It is predicted that the domestic SAF market will increase rapidly in the coming years, with production reaching well over the current 4.5 million gallons per year. But SAFs production won't scale up domestically without the support of policy and producer commitments. Growing domestic production will require a wide range of feedstocks and paths, and the industry will explore a variety of possibilities. Ethanol conversion into jet fuel is one of these alternatives.

As evident, several airports already are in hot pursuit of the infrastructure needed to enable SAF deliveries in the future. While in Los Angeles, CA (LAX) and San Francisco, CA (SFO) it is readily in use on short domestic passenger flights. Additionally, many U.S. airports have individual road maps to achieve net-zero emissions and are actively participating in the Airport Carbon Accreditation certification program.

For our part, keeping ahead of sustainable fuel initiatives, Rextag will continue to add asset and infrastructure data to enhance business development, market surveillance, and competitive awareness in the industry.

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Exploring ESG in Upstream Operations: Examining Achievements, Obstacles, and Emerging Patterns

ESG considerations are becoming increasingly essential for companies operating in the upstream sector. Failure to address ESG concerns may result in financial and reputational risks, given the growing focus from investors, regulators, and other stakeholders. Companies must prioritize ESG performance and engage with stakeholders to address concerns and mitigate risks. By doing so, they can improve their reputation, attract investment, and contribute to a more sustainable future

To effectively manage ESG issues in O&G companies, a comprehensive approach is required, addressing multiple managerial issues. First, ESG considerations must be integrated into the corporate strategy, setting goals that align with business objectives, reflected in budgeting, capital allocation, and risk management. Accurate and efficient collection, management, and reporting of ESG data is necessary for identifying relevant metrics and indicators, such as greenhouse gas emissions, water consumption, and social impact indicators.

ONEOK Inc. and Magellan Midstream Partners LP have announced a merger agreement that will result in the formation of a formidable midstream company headquartered in Tulsa, Oklahoma. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Callon is set to purchase Percussion Petroleum's Delaware assets for $475 million while selling its Eagle Ford assets to Ridgemar for $655 million. In a strategic step to optimize its operations, Callon Petroleum recently made headlines by sealing two deals on May 3, totaling a staggering $1.13 billion. The company is taking confident steps to bolster its presence in the Delaware Basin while bidding farewell to its stake in the Eagle Ford Shale.

Permian Resources bolsters dominance in the Delaware Basin with strategic land acquisitions, expanding its portfolio by over 5,000 net leasehold acres and 3,000 royalty acres. In a stunning display of growth and strategic maneuvering, Permian Resources Corp., based in Midland, Texas, has made waves in the first quarter by securing a series of deals worth over $200 million in the highly sought-after Delaware Basin. This move solidifies their position as a player in the region.

2023 blog posts