20 U.S. oil and gas trade groups unite against Biden’s “misguided” methane fee

World Oil

(WO) – The American Petroleum Institute (API) joined with 19 associations representing all segments of the U.S. oil and gas industry operating across the country in calling on the U.S. Environmental Protection Agency (EPA) to revise its misguided methane fee on American energy.

In comments submitted to the agency on the “waste emissions charge” proposed rulemaking, the associations argued that EPA’s proposed rule creates an incoherent regulatory regime, fails to meet the statutory requirements outlined by the Inflation Reduction Act and disincentivizes emissions reduction efforts by the industry.

“This tax on American energy is a serious misstep that could jeopardize our nation’s energy advantage and weaken our energy security,” said API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer.

“U.S. oil and natural gas is innovating throughout its operations to reduce methane emissions while meeting growing energy demand. Yet this proposal creates an incoherent, confusing regulatory regime that will only stifle technology advancements and hamper energy development. With partners across the industry, we will consider all options to ensure a smart regulatory framework for continued American energy development.”

In their comment letter, the associations raised significant concerns about the proposed rule’s nexus to other methane regulations underway, highlighting the Biden administration’s disharmonized approach to methane regulations. The associations urged the administration to coordinate this proposed rule with other regulations, including Subpart W and EPA’s final Methane Rule.

Additionally, the associations called for more flexibility on netting requirements to incentivize greater emissions reductions, clarification to the rule’s exemptions as intended by Congress, and commonsense compliance and reporting timelines.

The U.S. oil and gas industry is taking action to reduce methane emissions while continuing to produce affordable, reliable energy. Thanks to industry action, average methane emissions intensity declined by nearly 66 percent across all seven major producing regions from 2011 to 2021.

Industry-led initiatives like The Environmental Partnership, whose members make up nearly 70% of U.S. onshore natural gas and oil production, are helping to accelerate progress on methane emissions reductions by driving collaboration and sharing best practices across the industry.

The associations joining API include:

1. American Exploration and Production Council
2. American Fuel and Petrochemical Manufacturers
3. Independent Petroleum Association of America
4. LNG Allies
5. Energy Workforce Technology Council
6. Western States Petroleum Association
7. Alaska Oil and Gas Association
8. Kentucky Oil & Gas Association
9. Louisiana Mid-Continent Oil and Gas Association
10. Michigan Oil and Gas Association
11. New Mexico Oil and Gas Association
12. North Dakota Petroleum Council
13. Ohio Oil and Gas Association
14. The Petroleum Alliance of Oklahoma
15. Pennsylvania Independent Oil & Gas Association
16. Texas Independent Producers and Royalty Owners Association
17. Utah Petroleum Association
18. Gas and Oil Association of West Virginia
19. Petroleum Association of Wyoming

Lead image (Credit: World Oil)