Fining Exxon for flaring will not compensate for damage to the environment

ExxonMobil flaring at Guyana’s first FPSO, the Liza Destiny

…Guyanese scholar urges Govt. to ensure Exxon abides by Int’l best practices

By Davina Bagot

Kaieteur News – The Government of Guyana (GoG) often boasts of the introduction of a carbon tax, now imposed on oil companies, particularly the operator of Guyana’s prolific Stabroek Block, ExxonMobil Guyana Limited (EMGL).

Though this fee is intended to deter oil and gas companies from flaring associated gas during production activities offshore Guyana, the finances collected by government will not repair the significant damage being done to the environment.

Underscoring the importance of prudent management of the sector on Friday evening during a keynote address, in observance of World Press Freedom Day (WPFD), was Guyanese scholar, Dr. Ulric Trotz. He was invited by the Guyana Press Association (GPA) to deliver remarks since this year’s WPFD was observed under the theme ‘A Press for the Planet: Journalism in the face of the Environmental Crisis’.

The Scientist who served as Dean, Faculty of Natural Sciences, University of Guyana and former Director of the Institute of Applied Science and Technology is renowned for his contributions to the fight against Climate Change. Since 1997 Dr. Trotz has been giving direction to the Caribbean Region’s efforts to build capacity for Climate Change Adaptation.

Guyanese scholar, Dr. Ulric Trotz

In 2005, he assumed the post of Deputy Director and Science Advisor to the Caribbean Community (CARICOM) Climate Change Centre until 2020.
During a virtual presentation at Moray House, Camp Street, Georgetown to journalists, Dr. Trotz highlighted the crucial role of media workers in ensuring the protection of the environment. He was keen to note that the burgeoning petroleum industry in Guyana poses serious environmental challenges to the country, which must be carefully managed.

He charged, “Care has to be taken to ensure that there is minimal if any degradation of Guyana’s pristine terrestrial and marine space that would compromise the ability of the ecosystems they accommodate to provide the vital ecosystem services they contribute to our well-being.”

Dr. Trotz referenced a list of recommendations he had made in a paper on the Oil & Gas Industry and the Environment in Guyana.
According to the Scientist, “Operations for the development and production of oil and gas should adhere to the highest available standards for such activity with particular attention being paid to air emission, waste water discharges, solid and liquid waste management with specific attention to shore base disposal of radioactive wastes, noise generation (including underwater), oil spills, energy efficiency and resource conservation. Procedures that mimimise leakage of natural gas and its venting and flaring must be adopted.”

During a question-and-answer segment, Dr. Trotz was asked by Kaieteur News for his views on Guyana’s introduction of a flaring fee.
This mechanism is provided for in the Permits granted by the Environmental Protection Agency (EPA) to Exxon and stipulates that the operator will be fined a maximum of US$50 per tonne of carbon dioxide equivalents (CO2e) emitted as a result of flaring in excess of the startup and maintenance periods outlined.

Flaring is the burning of gas that is produced during the extraction of oil operations. During this process, harmful emissions are released into the environment, including methane which is 28 times as damaging as carbon dioxide (according to the US EPA)- another contributor to climate change.
For his part, Dr. Trotz said Guyana should be looking to adhere to the international best practices to cut methane pollution from flaring.

He told this newspaper, “The new trend now is the prevention of any sort of methane flaring or injection into the environment so I don’t know if Exxon will comply in terms of applying the same standards that they are held to in operating in the United States while in Guyana and if they don’t I think it’s in our interest for the government to insist that that is what is required.”

Additionally, Dr. Trotz pointed out that there is an international agreement to cut methane pollution from oil production activities where restrictions are being imposed on methane leakage from oil production facilities.

Consequently, he argued, “This whole question basically of flaring, the idea of putting a monetary penalty on flaring doesn’t compensate for the damage that it does to the environment.”

The PPP/C Government has often touted its commitment to Climate Change Adaptation and beats its chest over its 85% forest cover which makes the country carbon sink (removing more CO2 than it produces). The question is however, ‘does this authorise the oil and gas companies to pollute the environment?’

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