Monday, June 24, 2024

The U.S. EPA and DOE have opened funding opportunities to clean up, update, and/or monitor methane!

Happy Monday and welcome back to another week of ESC News Blog!

We love a follow-up to 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 being used to police the industry.  We blogged at the end of March about the Oil and Gas Industry stepping up and upgrading and implementing the latest technology to help clean up their emissions as well as monitor their own methane by satellites, cameras and other technology.  The U.S. Environmental Protection Agency (EPA) has taken notice of the under reporting and is implementing new standards called Greenhouse Gas Reporting Program (GHGRP) which we blogged about back in May.   We blogged about the fears and worries which affect small oil producers back in December.  The government said they would help the small producers and the disadvantaged communities which live near the oil and gas producers looks like the help is here.

Did anyone happen to read the Oil & Gas Journal’s Daily Update Newsletter on June 21, 2024, their article titled, “Biden administration targets methane releases from the oil, gas sector with $850 million in grants”?  The article was on how the U.S. EPA and Department of Energy (DOE) announced on June 21st they have opened the window for accepting applications for oil and gas producers and the communities affected by them for a chance to get federal funding to make a difference reducing methane emissions, other greenhouse gas, and other pollutants as well as monitoring them.   The funding is part of the 2022 Inflation Reduction Act (IRA) and the grants will be broken down into three groupings.  The first group will be grants for small oil and gas producers and their operations to update their equipment to help with their emissions controls and monitoring. The second group is to help clean up methane leaks from low-producing oil and gas wells by helping update compressors, engines and leaking equipment. The last group will be for the communities affected by the oil and gas industry with funding to help with policing the industry with monitoring equipment to help detect methane leaks.  The EPA over the past year have been letting the industry know they are watching the excessive methane leaks and are implementing changes to help us reach our climate goals, and the leaks or excessive flaring will no longer be tolerated and there is going to be a price to pay.   The Waste Emission Charge (WEC) which is a methane fee will be implemented later this year will cost the oil and gas industry $900 a metric ton on methane released over 25,000 tonnes per year (TPY), and the fee will increase every year after.  The deadlines for the federal grants are August 26, 2024, for the three groups.  You have to have respect for an administration which actually is putting their money where their mouth is, so good luck to all applicants!  If you would like to read more of Oil & Gas Journal’s article, please click the link:  Biden administration targets methane releases from oil, gas sector with $850 million in grants | Oil & Gas Journal (ogj.com).

If you would like to read the announcement from the DOE, please click the link: DOE and EPA Announce $850 Million to Reduce Methane Pollution from the Oil and GasSector | Department of Energy

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 to information on the revisions to the Greenhouse Gas Reporting Program for the oil and gas industry, please click the link: Revisions to GHGRP Subpart W (Petroleum and Natural Gas Systems) | 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.

How can we help you reduce your methane emissions on your liquid petroleum product? We can help update your emission controls or look to see what is under your feet to help lower your emissions, 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 Oil and Gas Journal’s article. **