BP is lobbying on Capitol Hill against a federal US environmental
agency being given jurisdiction over the use of a controversial method
of extracting gas from shale deposits, ahead of an important meeting
this week.
The London-based oil company wants decisions on drilling
techniques such as hydraulic fracturing – which uses high-pressure
liquids to force fissures – to be taken at state level, rather than
being left to the Environmental Protection Agency (EPA), whose
specialist committee meets on Wednesday to discuss its concerns.
BP
is also opposed to the public disclosure of the chemicals used in
fracturing, on the basis that the information is commercially sensitive
– something that will anger environmentalists, who are highly
suspicious of the process.
Although BP was unable to comment, the
New York Times published a "discussion draft" said to have been
produced by BP which says: "States with existing oil and gas regulatory
programmes have the authority to and are best situated to continue
regulating hydraulic fracturing processes and procedures."
Tony Hayward, the chief executive of BP, said in a recent speech that abundant shale gas had the potential to transform the US's dependence on foreign gas imports.
The
shale gas deposits have been known about for decades but recent
technological developments have opened the way for supplies to be
exploited in North America – and potentially in Europe and Asia.
Environmental
groups fear that the chemicals used in fracturing are highly toxic and
are worried about them filtering into reservoirs.
Oil companies
have found significant shale deposits in New York state and
Pennsylvania, close to densely populated areas. Requests to drill have
met opposition from green groups, as well as from local politicians.
But
the EPA is seen as an even tougher potential opponent. The
environmental engineering committee of the agency's science advisory
board is scheduled to meet on 7 and 8 April to evaluate "fracking", as
it is known.
The EPA is well known to BP, having recently
challenged a permit given by the state of Indiana allowing the company
to expand its Whiting refinery for use as a centre for treating crude
from the controversial Canadian tar sands.
BP was once seen as
one of the most environmentally conscious oil companies but that
reputation is now under strain as it becomes a vocal supporter of and
active participant in the carbon-intensive tar sands extraction in
Canada.
The green rhetoric of its former chief executive Lord
Browne has been toned down since Hayward took the reins three years
ago, although the company retains the use of the slogan "Beyond
petroleum" – adopted under Browne's leadership – for some of its
activities.
Hayward has promised to boost annual profits at BP by
$3bn (£2bn) over the next two or three years and committed the company
to increasing production by 1%-2% a year until 2015.
BP will face further questions about its attitude to the environment when directors appear before shareholders at the annual meeting next week.
The Guardian.uk