Page 7 - NorthAmOil Week 46 2022

NorthAmOil POLICY NorthAmOil

Biden tightens

methane rules for US

oil and gas industry

US THE administration of US President Joe Biden
has unveiled proposed tighter methane rules for
the oil and gas industry as the US works to cut
greenhouse gas (GHG) emissions.
Biden, speaking at the COP27 climate sum-
mit in Egypt, announced the proposed sup-
plemental rule for methane along with other
emissions standards. According to the new rule,
the federal government will require oil and gas
producers to detect and fix methane leaks at all
sites, including at smaller existing sites that emit
less than 2.72 tonnes per year (tpy) of the gas.
The new methane regulation would add to a
rule announced last year at the UN COP26 in
Glasgow in 2021 targeting emissions from exist-
ing oil and gas wells, rather than only new wells
as was the case in previous EPA regulations. New
wells had routinely been checked but were rarely
reassessed.
The methane proposal also requires opera- administrator, Michael Regan, also at COP27.
tors to respond to “credible” third-party reports The new, more aggressive standards “will enable
of high-volume methane leaks, said a press innovative new technology to flourish while pro-
release by the US Environmental Protection tecting people and the planet,” he added.
Agency (EPA). This is called the Super-Emitter The rules would ensure that all well sites are
Response Programme. routinely monitored for leaks at less cost, and
The new methane rules would eliminate until they are closed properly. They would also
36mn tonnes of methane emissions from oil and offer industry flexibility to use innovative and
gas operations by 2035, said the EPA. Oil and cost-effective methane detection technologies,
natural gas operations are the nation’s largest and a streamlined process for approving new
industrial source of methane. detection methods as they become available.
“If finalised, these critical, common-sense The rules would leverage data from remote sens-
The federal standards will protect workers and communi- ing technology to quickly identify and fix large
methane leaks. They would require that flares
ties, maintain and create high-quality, union-
government will friendly jobs, and promote US innovation and are properly operated to reduce emissions, and
require oil and manufacturing of critical new technologies, all revise requirements for associated gas flaring.
while delivering significant economic benefits They would also establish emission standards for
gas producers through increased recovery of wasted gas,” said dry seal compressors, which are currently unreg-
ulated. Additionally, they would set a zero-emis-
the EPA.
“Sharp cuts in methane emissions are among sions standard for pneumatic controllers and
to detect and fix the most critical actions the US can take in the pneumatic pumps at affected facilities in all seg-
methane leaks at short term to slow the rate of climate change,” ments of the industry. And they would increase
all sites. the EPA added. recovery of natural gas that otherwise would go
Biden also said the new rule will help the US to waste – enough gas from 2023 to 2035 to heat
meet a goal set by a US-led group of more than an estimated 3.5mn homes for the winter.
100 countries to cut methane emissions by 30% The American Petroleum Institute (API) said
by 2030 compared with 2020 levels. it would work with EPA to ensure the final rules
“I can ... say with confidence, the United are cost-effective, promote innovation and cre-
States of America will meet our emissions tar- ate the regulatory certainty needed for long-term
gets by 2030,” he told delegates, negotiators and planning.
national leaders at the conference in Sharm “Our industry is taking action, and as a result,
El-Sheikh. methane emissions relative to production fell
“We must lead by example when it comes 60% from 2011 to 2020,” said the API’s senior
to tackling methane pollution – one of the big- vice president of Policy, Economics and Regula-
gest drivers of climate change,” said the EPA’s tory Affairs, Frank Macchiarola.™

Week 46 17•November•2022 www. NEWSBASE .com P7