AM-94-60 POLLUTION PREVENTION - A GLOBAL PERSPECTIVE

Description:

The long-term solution to pollution is to prevent its formation. A graphic example of the implications of continuing to simply comply with environmental regulations, and treating waste as it is created, is provided by the recently completed National Petroleum Council report on the impacts of environmental regulations on the U.S. Refining Industry between 1991 and 2010. This report is an exhaustive look at the financial implications for the refining industry, assuming that regulations are complied with between now and 2010. Based on this study, the capital requirements for refining facilities are $36 billion, the onetime expenses are $7 billion and the ongoing incremental operating and maintenance costs associated with compliance are $109 billion. If these monies are actually spent, there will be significant impacts on the industry, including further capacity rationalizations. This paper provides details on the key components of this study as background for areas of emphasis in the development of environmentally-driven solutions to global competition by the refining industry.