One Oklahoma energy company that could be affected by the Biden administration’s climate change efforts and those targeting the oil and gas industry is Tulsa-based Cypress Environmental Partners. The firm took note of those efforts in its recent filing of its 10-K or annual report with the Securities and Exchange Commission.
” To the extent that the United States and other countries implement the Paris Agreement or impose other climate change regulations on the oil and natural gas industry, it could have an adverse effect on our business,” stated the company as it referenced the President’s 2021 Climate Change Executive Order which did a number of things including the U.S. reentering the Paris Agreement.
The annual report left it clear that Cypress Environmental is fully aware of how actions of the EPA and other federal and state agencies addressing greenhouse gas emissions could affect its operations.
“It is also possible that other developments, such as the adoption of stricter environmental laws, regulations, and enforcement policies, could result in additional costs or liabilities that we cannot currently quantify.”
Cypress stated that changes in environmental laws could limit its customers’ businesses or encourage them to handle and dispose of oil and natural gas wastes in other ways “which, in either case, could reduce the demand for our services and adversely impact our business.”
Other efforts addressing Green House Gas emissions might also end up affecting the work of Cypress.
” We cannot predict with any certainty at this time how these possibilities may affect our operations, but effects could be materially adverse.”
Cypress has more than 100 different customers largely in its three areas of operations—inspection services, pipeline and process services and water and environmental services.
Its top five customers represented more than 50% of the company’s revenues in 2020. The ten largest customers generated 71% of revenue in 2020, down from 2019. One of its largest customers last year was Pacific Gas and Electric Company which filed for Chapter 11 bankruptcy in 2019 and has been in legal fights with California over the cause of deadly wildfires.
Click here for SEC filing.
