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Highlights
- US plans to introduce new measures to cut methane emissions from oil and gas sites amid the COP 26 climate talks
- EU and US are leading a global initiative to reduce methane emissions by 30 per cent from 2020 levels
The US is planning to outline measures to stop the leakage of methane gas from its oil and gas wells.
Methane gas is amongst one of the highest industrial contributors to greenhouse gas emissions as it accounts for 33 per cent of warming.
The US and EU, during the COP 26 climate summit being held in Glasgow, announced to lead a global partnership that will reduce methane emissions by 30 per cent from 2020 levels,
The Environmental Protection Agency’s (EPA) Methane Emissions Reduction Action Plan (MERAP) aims to introduce new measures to cut methane emissions, including requiring US states to develop plans to cut emissions across around 300,000 oil and gas sites.
Some other plans include abandoning several orphan oil and gas wells which emit methane, new safety regulations over methane leaks in pipelines, burning of methane waste, amongst others.
In view of this, let us take a closer look at 2 FTSE listed oil and gas stocks and how they have reacted to the development:
- BP PLC (LON: BP.)
FTSE 100 index listed BP is a UK based multinational oil major.
The company reported its Q3 2021 underlying replacement cost profits rose by 86 per cent to US$ 3.3 billion, up from US$ 86 million in H1 2020. The jump was higher due to oil prices rising this year amid soaring energy costs.
The company also announced another US$ 1.25 billion share buyback programme, which it aims to complete before its FY 2021 results announcement.
(Image source: EODHD/Others)
BP’s shares were trading at GBX 349.10, down by 2.21 per cent on 2 November at 13:11 hrs BST, while the FTSE 100 index was trading at 7,250.76, down by 0.52 per cent.
The company’s market cap stands at £71,170.51 million, and its one-year return is at 78.33 per cent on 2 November
- Harbour Energy PLC (LON: HBR)
FTSE 250 index listed firm Harbour Energy is the UK’s largest independent oil and gas company. The company recently made a senior note offering worth up to US$ 500 million.
The 5.50 per cent senior notes’ aggregate principal amount will be due in October 2026, while its interest is expected to be paid on a semi-annual basis.
The gross proceeds from the offering will be used to repay and cancel its Shell Junior Facility. It will also be used to partly repay drawings under its senior secured reserves-based lending facility and also to fund its transaction fees and other related expenses.
(Image source: EODHD/Others)
Harbour’s shares were trading at GBX 355.20, down by 2.26 per cent on 2 November at 13:20 hrs BST, while the FTSE 250 index was trading at 23,185.99, down by 0.11 per cent.
The company’s market cap stands at £3,363.39 million, and its one-year return is at 57.82 per cent on 2 November.
