ENB Pub Note: We will review these regulations and report on the first-, second-, and third-order magnitude impacts.
EPA has issued a final rule that will sharply reduce emissions of methane and other harmful air pollution from oil and natural gas operations — including, for the first time, from existing sources nationwide. The final action includes New Source Performance Standards to reduce methane and smog-forming volatile organic compounds from new, modified and reconstructed sources. It also includes Emissions Guidelines, which set procedures for states to follow as they develop plans to limit methane from existing sources. Oil and natural gas operations are the largest industrial source of methane pollution in the U.S.
Methane is a climate “super pollutant” that is more potent than carbon dioxide and is responsible for approximately one third of current warming resulting from human activities. Rapid, sharp cuts in methane can generate near-immediate climate benefits and are a crucial addition to cutting carbon dioxide in slowing the rate of warming of Earth’s atmosphere.
EPA will hold trainings in early 2024 to provide an overview of the final rule for communities, Tribes, tribal environmental professionals and small businesses. The Agency also will hold trainings on how to apply to use alternate test methods for detecting methane and on how to apply to be EPA-certified for the Super Emitter Program. We will post information on the trainings on this web page as they are scheduled.
From ESG University on Substack:
The Environmental Protection Agency unveiled sweeping new regulations targeting methane emissions from the oil and gas sector on Saturday morning. This is a significant action from President Joe Biden advancing his strategy and public policy of a “War on Oil and Gas”.
“The Biden administration’s ‘War on Oil and Gas’ has created another round of regulations that directs the marketplace to shut down American energy production,” The Crude Life founder Jason Spiess said. “It’s very unfortunate that political and energy leadership do not take Biden’s War on Oil and Gas more serious.”
According to the Wall Street Journal, the United States have sought to play a leading role in global efforts to reduce emissions, but the biggest challenge will be in the courts. This is where conservatives on the Supreme Court have slapped down regulations the justices viewed as White House overreach.
“This proposal oversteps their authority with third-party enforcement, disregards foundational principles of the Clean Air Act, duplicates existing regulations and forces new pressures on small, independent producers,” Spiess said. “This is another crude reality for the oil and gas leadership and the elected officials who claim to be friends of oil and gas. My heart goes out to all the families who have invested their family futures into an industry that continues to be used as a political weapon politicians and special interests.”
Spiess added there is also the layer of the heightened geopolitical tensions and global oil instability caused by OPEC too.
The EPA has estimated that the rule announced Saturday would prevent an estimated 36 million tons of methane emissions through 2035. That’s equivalent to 810 million metric tons of carbon dioxide, or about the same as “all greenhouse gas emitted from the nation’s fleet of coal-fired power plants in 2020”, the agency said.
As mentioned earlier, the rule does duplicate existing standards for new pollution sources and for the first time will require producers to upgrade equipment and actively search for leaks at hundreds of thousands of wells and other oil and gas infrastructure.
From the U.S. Environmental Protection Agency (EPA)’s website news release:
A final rule that will sharply reduce methane and other harmful air pollutants from the oil and natural gas industry, including from hundreds of thousands of existing sources nationwide, promote the use of cutting-edge methane detection technologies, and deliver significant economic and public health benefits. The final action was announced by Administrator Michael S. Regan and President Biden’s National Climate Advisor Ali Zaidi at COP28 in Dubai, United Arab Emirates (UAE), advancing President Biden’s historic climate agenda and day one commitment to restore the United States’ global leadership on climate change.
Oil and natural gas operations are the nation’s largest industrial source of methane, a climate “super pollutant” that is many times more potent than carbon dioxide and is responsible for approximately one third of the warming from greenhouse gases occurring today. Sharp cuts in methane emissions are among the most critical actions the United States can take in the short term to slow the rate of climate change.
EPA’s final rule leverages the latest cost-effective, innovative technologies and proven solutions to prevent an estimated 58 million tons of methane emissions from 2024 to 2038, the equivalent of 1.5 billion metric tons of carbon dioxide – nearly as much as all the carbon dioxide emitted by the power sector in 2021. In 2030 alone, the expected reductions are equivalent to 130 million metric tons of carbon dioxide – more than the annual emissions from 28 million gasoline cars. The rule would achieve a nearly 80 percent reduction below the future methane emissions expected without the rule. These reductions are greater than what was projected for the 2022 and 2021 proposals, thanks to changes that strengthen provisions to limit wasteful, polluting flaring of natural gas and analytical updates that better capture the impacts of this rulemaking.
Oil and natural gas operations are also significant sources of other health-harming air pollutants, including smog-forming volatile organic compounds (VOCs) that can increase asthma attacks and other respiratory problems, as well as toxic air pollutants such as benzene that can increase cancer risk. Pollution from oil and gas activities occurs in or near some communities where people live, work and go to school – including in low-income communities and communities with large numbers of people of color, which are especially vulnerable to the effects of climate change. Based on an analysis of populations exposed to oil and gas pollution, EPA expects the final rule will reduce these pollutants and provide a range of health benefits for communities, including those with environmental justice concerns.
EPA’s estimates show the final rule will also protect public health by avoiding 16 million tons of volatile organic compounds from 2024 to 2038, along with 590,000 tons of toxic air pollutants like benzene and toluene. In this same timeframe, the rule will prevent wasteful leaks and other releases of about 400 billion cubic feet of valuable fuel each year– enough to heat nearly 8 million American homes for the winter.
“On day one, President Biden restored America’s critical role as the global leader in confronting climate change, and today we’ve backed up that commitment with strong action, significantly slashing methane emissions and other air pollutants that endanger communities,” said EPA Administrator Michael S. Regan. “We’ve crafted these technology standards to advance American innovation and account for the industry’s leadership in accelerating methane technology. Thanks to robust public feedback and engagement with states, Tribes, companies, and organizations, we are finalizing this historic action to reduce climate pollution, protecting people and the planet.”
“Under President Biden and Vice President Harris’s leadership, the U.S is turbocharging the speed and scale of climate action, at home and abroad, including our collective efforts to tackle super-pollutants like methane,” said Assistant to President Biden and U.S National Climate Advisor Ali Zaidi. “From mobilizing billions in investment to plug orphaned wells, patch leaky pipes, and reclaim abandoned mines to setting strong standards that will cut pollution from the oil and gas sector, the Biden-Harris Administration is putting the full throw-weight of the federal government into slashing harmful methane pollution. Over just the last year, the Administration has taken over 100 actions to implement the U.S. Methane Emissions Reduction Action Plan — steps that cut pollution, promote public health, create thousands of jobs, and lower energy costs for Americans.”
“New Mexico embarked on drafting our oil and gas rules at a time when the United States’ climate leadership was lagging. Thanks to President Biden and his administration, we are once again leading,” said New Mexico Gov. Michelle Lujan Grisham. “We are proud to have laid the foundation for this national rule, which will not only reduce emissions, but spur innovation and economic development across the country.”
“As the world gathers to tackle the climate crisis, the U.S. now has the most protective methane pollution limits on the books. EPA’s limits on oil and gas methane pollution are a vital win for the climate and public health, dramatically reducing warming pollution and providing vital clean air protections to millions of Americans. With other countries also zeroing in on methane as a key climate risk, it’s a signal to operators worldwide that clean-up time is here,” said Fred Krupp, President of the Environmental Defense Fund. “EPA has shown tremendous leadership in establishing these leading clean air standards and we look forward to working with states and EPA to move quickly on implementation. The communities who fought long and hard for these protections now need to begin to reap their benefits.”
“bp welcomes the finalization of a federal methane rule for new, modified and – for the first time – existing sources,” said Orlando Alvarez, Chairman and President, bp America. “A well-designed rule will help drive material methane emission reductions this decade and beyond. We appreciate the collaborative way EPA, NGOs and industry worked together on this rulemaking. In the spirit of COP28, input from a broad range of stakeholders makes for more durable and effective policies. We congratulate the Administration on this important milestone and look forward to working together on the next phases of implementation.”
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor. He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino.
Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.
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