Tuesday, March 26, 2024

Looks like the impending Methane Emission Fees are having an impact on the oil and gas industry!

Happy Tuesday!

We love a follow-up!  We spoke in our Blog about the upcoming implementation of the Methane Rules and about the impending Methane Emission Fees.  We blogged about the new tools being used for example MiQ-Highwood Index, and MethaneSat, the satellite which was sent up earlier this month.  Looks like the EPA, the public, and the environmentalists have brought their A game and now looks like the oil and gas industry sees the writing and is changing the way they handle methane and other emissions. 

Did anyone happen to read The Houston Chronicle’s Business Section on March 25, 2024, their article titled, “’Methane police’ on patrol as scrutiny ramps up”?  The article was how flyovers by satellites, EPA hired airplanes, and other data collection tools are taking notice of the methane leaks and are reporting them, and the industry is cleaning itself up in response.  The methane police are here, and they may be overhead weekly or more often reporting what they see to the U. S. Environmental Protection Agency (EPA).  The company has the burden of proof of proving when the release began and if they don’t have documentation to prove otherwise it is assumed the leak began 182 days before, and once the methane fee begins later this year or early 2025 this could mean millions of dollars to the company for a single well violation.  The oil and gas industry in response has been hiring their own monitoring police in regard to airplane and satellite flyovers or buying infrared cameras to help them find leaks and getting their equipment in top condition or replacing it with more modern equipment.  The companies are going over their equipment like compressors, tanks, flaring equipment, and ectara with a fine-tooth comb looking for leaks in their systems and fixing or replacing now before they’re reported, and the methane fees initiate.  In the past, companies reported methane emissions themselves to the EPA, and data collection tools were not very accurate which made the estimate of emissions based on equipment type and amount of oil or gas they produced.  It has been found this way of figuring emissions has strongly led to underestimating the amount of methane released according to the International Energy Agency.  The upcoming new world order old and new wells will be scrutinized for methane leaks by the EPA’s now being developed rules and enforced by state environmental officials which will go into effect in the coming years.  Investors of oil and gas companies have made climate change a priority and the industry has heard them and are investing in improvements as well as better leak detection.  The new equipment for monitoring for example sensors and cameras still is imperfect in collecting data, if weather isn’t ideal or it is windy, so in the near future infrared cameras used by a person is still the best way to track what’s going on.  As the industry moves forward technology should improve the accuracy of data it collects as well as improvements in equipment, and this will help climate change and our strive for net-zero.  If you would like to read more of The Houston Chronicle’s article, please click the link: Oil companies ramp up monitoring as methane emission fees loom(houstonchronicle.com).

If you would like to see the EPA’s new Methane Rules for Oil and Gas, please click the link: EPA's Final Rule for Oil and Natural Gas Operations Will Sharply Reduce Methane and Other Harmful Pollution. | US EPA.

If you would like information about the technical and financial help offered by the Methane Emissions Reduction Program, please click the link: Financial and Technical Assistance from the Methane Emissions Reduction Program | US EPA.

If you would like to see some suggested equipment from the EPA to reduce emissions, please click the link: Methane Mitigation Technologies Platform | US EPA.

If you would like help in looking into how to reduce your methane emissions with emission controls and help with adopting best practices, contact us via email in the blog and check out our ESC's website!

We hope you have a wonderful evening!

**Disclaimer: You may be charged a fee to read The Houston Chronicle’s article. **