The Extractive Industries Transparency Initiative (EITI) has little impact on the US domestic oil and gas industry but has been transformative in some parts of the world. So why did the US pull out?
On 2 November, the US government officially withdrew its membership from the EITI. On the surface, this sounds like another of the Trump administration’s efforts to disentangle the US from costly “bad deals” made through “big government overreach” in trade treaties, climate change agreements, or military and economic assistance whose benefits may not be worth the tradeoffs in costs, troops, and economic growth. But that is not the case with EITI.
EITI is a voluntary coalition of 53 countries and more than 80 large corporations (including ExxonMobil and Chevron) plus more than 30 civil society groups and international organizations (like the World Bank) committed to adhering to standards to increase transparency around payments made to governments in oil, gas, and mining activities. EITI was designed to serve in lieu of government-imposed requirements. In fact, the American Petroleum Industry successfully argued that, by virtue of its member companies’ active participation in EITI, the disclosure requirements mandated by the Dodd-Frank Act were not necessary.
EITI participation carries very little cost, no real downside risk, and the potential for great benefits. It has virtually no impact on the operations or profitability of the US domestic oil and gas industry. But not participating in EITI has the potential to destroy US international credibility and leadership on a range of issues.
Read the full story here.
Don't miss our latest HSE content, delivered to your inbox twice monthly. Sign up for the HSE Now newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
3 Dec 2019
- Cairo, Egypt
Enhance your understanding of process safety techniques by reserving a place at this 1-day training course
3 - 4 Dec 2019
- Kuala Lumpur, Malaysia
Strategic Partnerships for a Sustainable Future
20 - 22 Jul 2020
- Austin, Texas, USA
Take the lead - speak at URTeC 2020
13 - 15 Jan 2020
- Dhahran, Saudi Arabia
Plan to participate at this unique event
20 - 22 Oct 2020
- Perth, Australia
Abstract Submission deadline 13 January 2020
29 Jan 2020 22:30 GMT
- Live, then On Demand
19 - 20 Feb 2020
- Lafayette, Louisiana, USA
Covering issues related to the identification, prevention, and remediation of formation damage
HSE Now is a source for news and technical information affecting the health, safety, security, environment, and social responsibility discipline of the upstream oil and gas industry.
©2003-2019 Society of Petroleum Engineers, All Rights Reserved.