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5mo ago

EPA Finalizes Methane Fee Targeting Oil and Gas Emissions

The new regulation imposes a financial penalty on companies for excessive methane emissions, as the Biden administration seeks to curb climate change impacts.

Oil well in Watford City,North Dakota
The new methane rule charges companies a fee for leaking or flaring methane into the atmosphere instead of capturing it.
HOUSTON, TEXAS - JUNE 14: An aerial view of smoke from the LyondellBasell Houston refinery on June 14, 2024 in Houston, Texas. The International Energy Agency is predicting a major surplus of oil by the end of the decade as production continues rising and demand declines. The decline is in part due to the switch from gasoline to electric vehicles and renewable energy. The agency has reported that the world's oil production is expected to increase to approximately 114 million barrels per day by 2030. (Photo by Brandon Bell/Getty Images)
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Overview

  • The Environmental Protection Agency has introduced a 'Waste Emissions Charge' on methane emissions from oil and gas companies.
  • The fee will start at $900 per metric ton in 2024, increasing to $1,500 by 2026, for emissions exceeding 25,000 metric tons annually.
  • The rule is part of the Biden administration's strategy to reduce methane emissions by 1.2 million metric tons by 2035.
  • Industry groups and some Republicans criticize the fee, arguing it could raise energy prices and strain the national grid.
  • President-elect Donald Trump has pledged to repeal the fee, but legal and legislative challenges may complicate such efforts.