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E.P.A. Methane Leak Rules Take Aim at Climate Change E.P.A. Methane Leak Rules Take Aim at Climate Change
(35 minutes later)
WASHINGTON — The Obama administration on Thursday unveiled the first federal regulations to control emissions of potent planet-warming methane gas that could leach from new oil and gas wells, the next step in President Obama’s aggressive effort to combat climate change.WASHINGTON — The Obama administration on Thursday unveiled the first federal regulations to control emissions of potent planet-warming methane gas that could leach from new oil and gas wells, the next step in President Obama’s aggressive effort to combat climate change.
The methane rule is the final version of a draft regulation put forth last year by the Environmental Protection Agency, and would require oil and gas companies to plug and capture leaks of methane from new and modified drilling wells and storage tanks, not older, existing wells.The methane rule is the final version of a draft regulation put forth last year by the Environmental Protection Agency, and would require oil and gas companies to plug and capture leaks of methane from new and modified drilling wells and storage tanks, not older, existing wells.
The E.P.A. estimates that the rules could cost companies around $530 million in 2025, but the agency also estimates that they would yield companies savings from reduced waste of as much as $690 million, a potential net benefit of $160 million. The agency said the regulations would lower methane emissions by 510,000 tons in 2025, the equivalent of 11 million metric tons of carbon dioxide.The E.P.A. estimates that the rules could cost companies around $530 million in 2025, but the agency also estimates that they would yield companies savings from reduced waste of as much as $690 million, a potential net benefit of $160 million. The agency said the regulations would lower methane emissions by 510,000 tons in 2025, the equivalent of 11 million metric tons of carbon dioxide.
“These new actions will protect public health and reduce pollution linked to cancer and other serious health effects while allowing industry to continue to grow and provide a vital source of energy for Americans across the country,” said the agency’s administrator, Gina McCarthy.“These new actions will protect public health and reduce pollution linked to cancer and other serious health effects while allowing industry to continue to grow and provide a vital source of energy for Americans across the country,” said the agency’s administrator, Gina McCarthy.
Oil and gas companies, already reeling from sustained low prices, see only an economic burden and have vowed to fight.Oil and gas companies, already reeling from sustained low prices, see only an economic burden and have vowed to fight.
“It doesn’t make sense that the administration would add unreasonable and overly burdensome regulations when the industry is already leading the way in reducing emissions,” said Kyle Isakower, vice president for regulatory policy at the American Petroleum Institute. “Imposing a one-size-fits-all scheme on the industry could actually stifle innovation and discourage investments.”“It doesn’t make sense that the administration would add unreasonable and overly burdensome regulations when the industry is already leading the way in reducing emissions,” said Kyle Isakower, vice president for regulatory policy at the American Petroleum Institute. “Imposing a one-size-fits-all scheme on the industry could actually stifle innovation and discourage investments.”
The new methane rules are the latest part of a broader push by Mr. Obama to cut greenhouse gas emissions from industries across the economy. E.P.A. regulations would cut carbon dioxide emissions from cars, trucks and power plants, and new rules are in the works to reduce emissions from airplanes. Many of those regulations could face years of litigation before they can go into force.The new methane rules are the latest part of a broader push by Mr. Obama to cut greenhouse gas emissions from industries across the economy. E.P.A. regulations would cut carbon dioxide emissions from cars, trucks and power plants, and new rules are in the works to reduce emissions from airplanes. Many of those regulations could face years of litigation before they can go into force.
The rules governing carbon dioxide emissions from cars and power plants, the two largest sources of greenhouse gas emissions, form the centerpiece of Mr. Obama’s climate change agenda. They are at the heart of Mr. Obama’s pledge under last year’s Paris Agreement on climate change that the United States would reduce its greenhouse gas emissions between 26 percent to 28 percent from 2005 levels by 2025.The rules governing carbon dioxide emissions from cars and power plants, the two largest sources of greenhouse gas emissions, form the centerpiece of Mr. Obama’s climate change agenda. They are at the heart of Mr. Obama’s pledge under last year’s Paris Agreement on climate change that the United States would reduce its greenhouse gas emissions between 26 percent to 28 percent from 2005 levels by 2025.
Reducing methane is an important part of the administration’s climate change strategy because the gas is 25 times more effective than carbon dioxide in trapping heat. It does, however, dissipate in the atmosphere far more quickly than carbon. The administration has set a goal of reducing methane emissions by as much as 45 percent from 2012 levels by 2025.Reducing methane is an important part of the administration’s climate change strategy because the gas is 25 times more effective than carbon dioxide in trapping heat. It does, however, dissipate in the atmosphere far more quickly than carbon. The administration has set a goal of reducing methane emissions by as much as 45 percent from 2012 levels by 2025.
Within the United States, seepage from oil and gas wells is the largest source of methane gas in the atmosphere. In April, the E.P.A. released a report that concluded that the amount of the gas leaking from oil and gas wells is much higher than previously reported. The study concluded that methane from oil and gas leaks makes up about a third of total methane emitted in the United States. Earlier reports had suggested that the nation’s largest source of methane emissions may have been cattle and other livestock. Within the United States, seepage from oil and gas wells is the largest source of methane gas in the atmosphere. In April, the E.P.A. released a report that concluded that the amount of the gas leaking from oil and gas wells is much higher than previously reported. The study concluded that methane from oil and gas leaks makes up about a third of total methane emitted in the United States. Earlier reports had suggested the nation’s largest source of methane emissions may have been cattle and other livestock.
The rule on methane emissions from new oil and gas wells will not be enough to meet Mr. Obama’s methane reduction targets, but the E.P.A. is also expected to move forward with additional rules governing methane leaks from existing wells.The rule on methane emissions from new oil and gas wells will not be enough to meet Mr. Obama’s methane reduction targets, but the E.P.A. is also expected to move forward with additional rules governing methane leaks from existing wells.
“We will remain steadfast in our efforts urging E.P.A. to move expeditiously on its commitment to address existing sources of this highly potent greenhouse gas — which will continue to be responsible for the vast majority of this pollutant — and is essential in meeting the Paris climate agreement,” Michael Brune, executive director of the Sierra Club, said in a statement Thursday.“We will remain steadfast in our efforts urging E.P.A. to move expeditiously on its commitment to address existing sources of this highly potent greenhouse gas — which will continue to be responsible for the vast majority of this pollutant — and is essential in meeting the Paris climate agreement,” Michael Brune, executive director of the Sierra Club, said in a statement Thursday.
Oil and gas companies call the rules unnecessary and costly, maintaining that they already have an incentive to stop and prevent methane leaks, since methane can be sold. The companies say the rules impose new costs on an industry struggling with sustained low oil and gas prices.Oil and gas companies call the rules unnecessary and costly, maintaining that they already have an incentive to stop and prevent methane leaks, since methane can be sold. The companies say the rules impose new costs on an industry struggling with sustained low oil and gas prices.
The new methane rules are being closely watched in Canada, where Prime Minister Justin Trudeau has pledged to work with Mr. Obama on a joint methane reduction strategy. Ottawa is expected to produce a similar set of regulations for a country where oil and gas extraction is a larger part of the economy than in the United States.The new methane rules are being closely watched in Canada, where Prime Minister Justin Trudeau has pledged to work with Mr. Obama on a joint methane reduction strategy. Ottawa is expected to produce a similar set of regulations for a country where oil and gas extraction is a larger part of the economy than in the United States.