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Oil Industry

Will the SCOTUS EPA Ruling Affect Oilfield Production?

Posted by: Kemmy Law Firm

The Supreme Court of the United States (SCOTUS) often decides essential issues that impact millions throughout the United States. Their decisions could change how entire industries operate, including the oil field industry. In a recent court case called West Virginia v. EPA, the Supreme Court made a monumental decision that impacted not only the oil industry but everyone in the U.S.

What is West Virginia v. EPA?

West Virginia v. Environmental Protection Agency (EPA) is a recent court case ruling by the U.S. Supreme Court.
This court case stems from President Obama’s Clean Power Plan. That plan allowed enforcement of how much emissions power plants could produce. However, President Obama never implemented the plan because it was legally challenged. Then, the Clean Power Plan was abandoned under President Trump’s administration.

The court case continued to challenge the Clean Power Plan to establish whether the EPA can regulate emissions in the United States.

What Was the Case’s Outcome?

In a 6-3 opinion, the justices decided that the EPA does not have the authority to regulate specific industry greenhouse gas emissions. While the Clean Power Plan allowed the EPA to cap carbon dioxide emissions, the Supreme Court stated that Congress did not give the EPA the authority to adopt such a regulatory scheme “of such magnitude and consequence.” Such a decision, the justices said, should be left to Congress alone.

President Biden did not agree with the Supreme Court decision. He called it “devastating” and said it risks the nation’s ability to keep air clean and combat climate change.

How Does this Impact Oilfield Production?

The oil industry is a large producer of greenhouse gasses like carbon dioxide. Thus, the decision in West Virginia v. EPA has a significant impact on oilfield production. If the Supreme Court had ruled in favor of the EPA regulations, then the oilfield industry would have been forced to reduce emissions. However, as it stands, the EPA cannot impose such regulations. The oilfield industry may continue to operate as usual.

Contact Kemmy Law Firm Today

The accident-prone oil industry has been known to put workers at risk of severe injuries. If you have questions about how this ruling may impact you or other legal needs, contact Kemmy Law Firm today at 210-750-1019 or use our online contact form to reach out.

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