FILE - A flare burns natural gas at an oil well in Watford City, N.D., Aug. 26, 2021. WASHINGTON — Oil and natural gas companies for the first time will have to pay a federal fee if they emit dangerous methane above certain levels under a rule being made final by the Biden administration.Methane is a climate “super pollutant” that is far more potent in the short term than carbon dioxide and is responsible for about one-third of greenhouse gas emissions.
The rule targets the U.S. oil and natural gas industry for its role in global warming as Biden seeks to secure his legacy on fighting climate change., will encourage early deployment of available technologies to reduce methane emissions and other harmful air pollutants, Regan said. The fee “is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air and reinforce U.S.
Even so, EPA estimates that the rule will result in cumulative emissions reductions of 1.2 million metric tons of methane through 2035. That figure is similar to clean-air gains from taking nearly 8 million gas-powered cars off the road for a year, the EPA said. Cumulative climate benefits could total as much $2 billion, the agency said.
API said it looks forward to working with Congress to repeal the “misguided new tax on American energy.”
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