What does the new methane fee mean for the oil and gas industry

The Biden administration plans to implement a new rule requiring oil and natural gas companies to pay a federal fee for excessive methane emissions starting in 2024. This rule follows a directive from the 2022 climate law aimed at reducing methane, a significant greenhouse gas that contributes about one-third of the total greenhouse gas emissions in the U.S. The Environmental Protection Agency (EPA) sets the fee at $900 per ton in 2024, increasing to $1,200 in 2025, and $1,500 in 2026. The rule seeks to minimize methane leakage and improve efficiency while potentially yielding a reduction of 1.2 million metric tons of methane by 2035 and generating climate benefits valued at up to $2 billion. Industry groups are likely to challenge the regulation, citing concerns over retroactive fees, while environmental advocates support the initiative as essential for addressing climate change. The EPA expects that companies will comply and reduce emissions, leading to fewer penalties over time. Learn more on this news visit us at: https://greyjournal.net/ Hosted on Acast. See acast.com/privacy for more information.