Our cost-mitigation continued initiatives and actions to increase operating efficiencies may not offset, largely or at all, the impacts of be successful in offsetting any future inflationary pressures on our operating costs and capital expenditures.
At the international level, in December 2015, the U.S. participated in the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France. The Paris Agreement (adopted at the conference) calls for nations to undertake efforts with respect to global temperatures and GHG emissions. The Paris Agreement went into effect in November 2016 and to which the United States formally rejoined in February 2021. The United States has established an economy-wide target of reducing its net GHG emissions by 50-52 percent below 2005 levels by 2030 and achieving net zero GHG emissions economy-wide by no later than 2050. In December 2023, the first global stocktake, also known as the “UAE Consensus,” was issued at the United Nations Climate Change Conference. The UAE Consensus is an assessment of members’ collective efforts and achievements to reduce GHG emissions and adapt to the impacts of climate change. The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050. In The U.S. withdrew from the Paris Agreement effective January 2025, 27, 2026 and, on January 7, 2026, it was announced that the United States submitted formal notification to U.S. will also withdraw from the United Nations that it intends to withdraw from the Paris Agreement. Pursuant to the terms of Framework Convention on Climate Change. For further discussion regarding the Paris Agreement, the withdrawal will take effect on January 27, 2026. Nevertheless, many state UAE Consensus and related matters, see ITEM 1, Business – Regulation – Climate Change – United States. State and local officials may may, however, continue efforts to uphold the commitments set forth in the international accord.
Our ability to achieve and, if achieved, sustain these targets and ambitions is subject to numerous factors and contingencies, some of which are outside of our control and include (among other commercial, operational, technological, financial, legal and regulatory factors and contingencies) evolving government regulation, the pace of changes in technology, the successful development and deployment of existing or new technologies and business solutions on a commercial scale, the availability, timing and cost of necessary equipment, goods, services and personnel, and the availability of requisite financing and federal and state incentive programs. For example, we are exploring technology to capture and store carbon dioxide emissions, which includes a pilot carbon capture and storage (CCS) project related to our operations. CCS projects face operational, technological, legal and regulatory risks that could be considerable due to the early-stage nature of such projects and the CCS sector generally. Our ability to successfully develop, implement and carry out our CCS activities will depend on a number of factors that we will not be able to fully control, including timing of regulatory approvals and availability of subsurface pore space. Further, financial or tax incentives in respect of CCS projects could be changed or terminated. In addition, our failure to properly operate a CCS project could put at risk certain governmental tax credits and potentially expose us to commercial, legal, reputational and other risks.
Lastly, as noted above, the SEC, in March 2024, finalized extensive climate-related disclosure rules that would require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings (although the new these rules have been stayed pending judicial review and in abeyance by the U.S. Court of Appeals for the Eighth Circuit until such time as the SEC has requested reconsiders the court to pause further judicial proceedings, pending the SEC's determination challenged rules by notice-and-comment rulemaking or renews its defense of the appropriate next steps). rules). To the extent the rules are implemented, we could incur increased costs related to the assessment and disclosure of climate-related information.
We have undertaken, and plan to continue with, certain these initiatives and actions (such as agreements with service providers actions. However, such efforts may not be successful or may not be sufficient to secure offset the costs and availability impacts of services) to mitigate any future inflationary pressures (such as from tariffs). However, there can be no assurance that such efforts will offset, largely tariffs, other trade barriers or at all, the impacts of any future inflationary pressures other macroeconomic factors) on our operating costs and capital expenditures and, in turn, on our cash flows and results of operations. For additional discussion, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments.
•the economic and financial impact of epidemics, pandemics or other public health issues, such as the COVID-19 pandemic. issues.
In addition, in recent years from time to time there has been increased particular investor and regulatory focus on environmental and social matters. In matters, including, in addition to climate change, there has been increased investor and regulatory focus on topics such as human rights and human capital management in companies' own operations as well as across their supply chains. matters. If our related initiatives, targets and ambitions do not meet our investors' or other stakeholders' evolving expectations and standards, investment in our stock may be viewed as less attractive and our reputation and contractual, employment reputation, relationships with investors and other business relationships may be adversely impacted.
•worldwide economic conditions, geopolitical factors and political conditions, including, but not limited to, the imposition of tariffs or tariffs; trade or policies, trade agreements and trade restrictions; other economic sanctions or barriers; and political instability or armed conflict conflicts in oil and gas producing regions;
