Exxon Says EU Methane Rules Would Add 13% to Refiners’ Oil Costs

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(Bloomberg) — European Union rules intended to curb emissions of methane, a potent greenhouse gas, could add about 13% to the cost of crude oil imports and deal a hammer blow to the bloc’s industrial base, Exxon Mobil Corp. warned ahead of a meeting of leaders this week.

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About 80% of the EU’s current imports of crude oil would not satisfy the bloc’s methane criteria in 2027, Matt Crocker, Exxon’s president of product solutions, told Bloomberg. Securing alternate supplies from the smaller pool of compliant crudes would add about $9 to the average price the bloc pays per barrel, he said.

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A barrel of Brent crude oil, the primary benchmark in Europe, current trades near $70.

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The warning comes the day before key industry executives meet with EU officials, as well as French President Emmanuel Macron and German Chancellor Friedrich Merz in Antwerp to discuss economic competitiveness.

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“We’re very supportive of reducing methane emissions and are very active in the US, but what European policy is doing is taking that into an extreme,” Crocker said in an interview in Brussels on Tuesday, citing figures that have been presented to the European Commission, the bloc’s executive branch. “It’s about having policies that are sensible, proactive, and we can work through, rather than having these anti-competitive policies that just companies won’t be able to meet and comply with.”

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It’s not the first time the EU’s methane-emissions rules have found themselves in the crosshairs of US producers. Previous complaints largely focused on easing the burden on imports of liquefied natural gas from the US — something the EU has promised to address through a “simple and pragmatic” implementation of regulations.

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Next year, oil and gas imports will have to be aligned with the EU’s rules on monitoring, reporting and verification. The commission will also publish methodology for measuring methane intensity. By 2030, penalties will be issued for imports that are above a methane-intensity threshold.

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A promise made by the EU last year to buy $750 billion of American energy imports over three years helped clinch a trade deal with President Donald Trump. Since then, relations then have been strained by his demands to take over Greenland and threats to slap tariffs on those European countries who resist. Still, the US is set to remain a significant supplier of fossil fuels to Europe as it ends its dependence on imports from Russia following the invasion of Ukraine.

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Europe’s high energy prices have been blamed for shuttering key heavy industries and will be a major focus of debate when EU leaders meet with industry in Antwerp on Wednesday. There will be a retreat for the bloc’s 27 member states at the Alden Biesen castle in Belgium the following day.

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Almost a third of Europe’s refineries have either closed or been converted to other uses since 2009, according to FuelsEurope, an industry lobby group.

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“Almost day by day, there are closures, whether it’s companies leaving or plants getting shuttered,” Crocker said. “We could well be beyond the point of no return.”

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