Climate Change: Chasing Compliance

The world’s converging energy, environmental, and political stresses present the upstream oil and gas industry with a set of complex challenges that are riddled with unexpected non-linear results and emergent properties.

As governments react to climate change concerns, new regulations and changes to existing frameworks emerge at a rapid and confusing pace. As Ottawa stands behind their Federal Carbon Pricing Backstop and faces off against the Provinces, companies trying to understand and drive decision-making are faced with significant challenges while chasing a moving target.

Complicated and overlapping emission limits, reduction targets and costs on carbon challenge industry to adapt while balancing production, environmental considerations and related financial obligations.

Regulatory Compliance Paradigm Shift

The implementation of carbon tax regimes, cap and trade systems, and methane reduction targets introduce new immediate, and long-term consequences that will cascade through all departments of your organization, from the field to head office. Without a doubt, adapting to the new regulatory landscape will require resources, ingenuity and continuous innovation.

While regulatory compliance is often considered a burden on industry, if we are well-prepared, these challenges may present opportunities to revive, refresh and improve your organization.

Satisfying methane reduction obligations, replacing non-compliant equipment, and managing a robust leak detection and repair program will come at a cost. However, they will also result in cost savings related to fuel use, maintenance and efficiencies.

Further, when accompanied by offset credit system protocols, regulatory compliance is coupled with immediate, and long-term opportunities to generate carbon credits. While these protocols are designed to reduce the financial burden associated to compliance, some of them are only here temporarily.

Identifying the most effective and efficient path to regulatory compliance requires a holistic approach that is guided by data-driven decisions. However, companies today often have to allocate significant resources just to determine their compliance status and understand how new requirements will affect their budget.

Compliance is far too often addressed by redundant work flows and siloed approaches that fail to reduce the effort required year over year, focus on a snapshot of the past and fail to provide the transparency required to identify opportunities to gain competitive advantage.

The rules have changed and so should the strategy.

Oil and Gas Regulatory Technology

Keeping up with the ever increasing demands of compliance within the upstream oil and gas industry requires interdepartmental transparency, communication and cooperation. Business decisions pertaining to regulatory compliance efforts should be made based on detailed data sets and a comprehensive understanding of their cascading effects throughout an organization.

Surviving the new regulatory landscape will require an understanding of both the consequences and opportunities associated with new requirements. Companies that get a head start on their transition will gain advantage over those that miss out on offset credit opportunities. Further, companies that are able to identify, analyze, and predict potential compliance measures will take the most direct and rewarding road to compliance while others fail to achieve the same level of efficiency.

The stage is set for regulatory technology to disrupt ineffective and outdated compliance approaches. Industry leaders of tomorrow are adopting emerging technologies that deliver richer and faster insights, drive efficiencies in compliance processes, reduce costs, and offer foresight into emerging risk issues.

Big data is readily available. It’s about time we utilize it to improve our organizations.

Clairifi: Compliance to Performance

Clairifi Inc. is a group of industry subject matter advisors that offer unique perspectives on how challenges related to air emission limits, reduction targets and costs on carbon can impact your organization. Our development team offers a diverse set of skills including professional services, artificial intelligence and machine learning, robotic process automation and quality assurance.

By combining these disciplines, we have created the Clairifi software-as-a-service (SAAS) solution for the upstream oil and gas industry that allows our users to:

• Alleviate new air emission regulatory burdens,
• Optimize resources dedicated to emission reduction efforts, and,
• Maximize opportunities to generate carbon credits.

Our platform makes it easy to understand how regulatory requirements apply to your organization, while minimizing the burden of quantification, analysis and reporting. By empowering our users with emerging regulatory technology, we aim to drive a shift in focus from the previous year’s emissions to maximizing savings, increasing operational efficiency and identifying opportunities to capitalize on carbon credit offset projects.

We’re focused on providing solutions that help our users innovate, reduce emissions, save money and grow, while most importantly, ensuring regulatory compliance.

Clairifi: Compliance Made Easy

We offer the tools and information you need to understand where you stand today, what regulatory obligations mean for tomorrow, and ultimately, the ability to identify the most efficient and rewarding path to compliance.