The Borneo Post

US methane pollution curbs on oil and gas wells to be relaxed

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THE TRUMP administra­tion on Tuesday proposed relaxing Obama- era mandates meant to block rogue methane leaks from oil and gas wells, part of a broader assault on federal regulation­s designed to combat climate change.

The Environmen­tal Protection Agency proposal takes aim at requiremen­ts forcing energy companies to find and stop methane leaks at new and newly modified oil and gas wells, amid industry concerns the mandates are unnecessar­y and too expensive.

The proposal would lessen the frequency of required inspection­s to hunt for methane leaks. remove a requiremen­t that profession­al engineers certify some equipment designs and make it easier for energy companies to deploy emerging technologi­es to monitor emissions.

The EPA said its changes would save an estimated US$ 484 million in regulatory costs from 2019 to 2025 – or US$ 75 million annually.

“These commonsens­e reforms will alleviate unnecessar­y and duplicativ­e red tape and give the energy sector the regulatory certainty it needs to continue providing affordable and reliable energy to the American people,” EPA Acting Administra­tor Andrew Wheeler said in a statement. “Removing these excessive regulatory burdens will generate roughly US$ 484 million in cost savings and support increased domestic energy production.”

The proposal will now be subject to a public comment period, paving the way for final changes next year. The effort dovetails with a separate Interior Department move to ease Obama administra­tion mandates requiring energy companies keep a better lid on natural gas escaping from wells on public land.

Both efforts are part of a broader assault by President Donald Trump on former President Barack Obama’s climate legacy. Obama built a three-part strategy for combating climate change, with regulation­s capping greenhouse gas emissions from power plants, automobile­s and oil wells.

Trump’s EPA already proposed relaxing carbon dioxide limits for two of those targets in August: power plants and vehicles. Now, with methane, the Trump administra­tion is taking aim at the third and final piece of Obama’s 2013 climate action plan.

The oil and gas industry is the leading source of methane, an intense but short-lived greenhouse gas shown to warm the atmosphere 84 times more than carbon dioxide when measured over two decade. That potency increases when measured over a century; methane is estimated to be 25 times more powerful at warming the atmosphere over that 100year timeline.

Under the EPA’s proposal, energy companies would generally have to search for leaks at oil and gas wells

These commonsens­e reforms will alleviate unnecessar­y and duplicativ­e red tape and give the energy sector the regulatory certainty it needs to continue providing affordable and reliable energy to the American people. Removing these excessive regulatory burdens will generate roughly US$484 million in cost savings and support increased domestic energy production. Andrew Wheeler, EPA Acting Administra­tor

annually, instead of twice a year as required under the 2016 rule. Very low-producing sites – generally known as “marginal” wells – would have to be inspected once every two years. And the requiremen­ts would disappear altogether when major production and processing equipment is removed from any site.

Oil industry leaders have said federal regulation­s are unnecessar­y in light of ongoing work to keep methane from escaping. Because methane is the primary ingredient in natural gas, energy companies have a financial incentive to keep it bottled up as it moves from the wellhead to compressor stations and into storage tanks.

“Methane emissions from the oil and natural gas industry are already down 14 per cent since 1990 while production has increased by 50 per cent, said Howard Feldman, senior director of regulatory and scientific affairs at the American Petroleum Institute. “We welcome EPA’s efforts to get this right and the proposed changes could ensure that the rule is based on best engineerin­g practices and cost- effective.”

Although some energy companies have worked aggressive­ly and voluntaril­y to plug methane leaks, environmen­talists and some investors worry the industry as a whole is not moving quickly enough to address the issue. Federal mandates provide essential incentive for companies to spend money capturing methane emissions when the investment­s won’t swiftly pay off, environmen­talists argue.

“With this methane safeguard rollback, President Trump’s EPA just sacrificed public health and climate for oil and gas industry profits,” said Lauren Pagel, policy director at Earthworks. “And he did so despite some of the world’s largest oil and gas companies endorsing the need for methane rules.”

Because methane is such a potent greenhouse gas, cutting it is seen as a way to swiftly make progress in a global fight against climate change. —

 ?? Bloomberg photo by Luke Sharrett. ?? Emissions rise from the Royal Dutch Shell Norco Refinery in Norco, La. on Feb. 9. —
Bloomberg photo by Luke Sharrett. Emissions rise from the Royal Dutch Shell Norco Refinery in Norco, La. on Feb. 9. —

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