[ad_1]
Reducing or eliminating emissions is becoming an ever-more dominant focus for oil and gas companies, especially as the Biden administration implements policies designed address emissions.
The nation’s oil and gas industry is the primary focus of the administration’s US Methane Emissions Reduction Action Plan, according to David Elam, vice president and project director at TRC Companies. Elam addressed what is termed the methane agenda during his presentation at last month’s Permian Basin Environmental Regulatory Seminar at Midland College.
The methane agenda, he told the Reporter-Telegram by email, reflects the administration’s cross-economy approach to implementing the action plan, which aligns with the Global Methane Pledge. That pledge seeks to reduce methane emissions by 30 percent from 2020 levels by 2030.
The action plan targets five key areas:
• Oil and gas sources
• Landfills
• Abandoned coal mines
• Agricultural operations
• Industrial applications and buildings
“The US Methane Emissions Reduction Plan includes both regulatory and voluntary initiatives, with the oil and gas industry facing regulatory initiatives from the Environmental Protection Agency and Department of Transportation through its Pipeline and Hazardous Materials Safety Administration to monitor and reduce emissions,” Elam wrote.
Ultimately, the goal is to reduce methane emissions from a variety of sources and increase electrification in buildings and industrial processes, he added.
The EPA has proposed regulations to establish emissions guidelines under what the industry knows as Quad OC that the states would be required to implement.
“This means that methane regulations will become more stringent in most states,” Elam wrote. “However, there will be consistency from state to state, except in those cases where states promulgate regulations that are more stringent than those from EPA.”
A possible positive outcome of these regulatory developments is natural gas producers could begin to sell their production as responsibly sourced gas, which can carry a 1 to 3 percent price premium over conventional natural gas.
“Methane is a highly valuable fuel and feedstock. It has been fundamental in our transition to a clean energy economy, allowing us to replace coal-fired power plants with natural gas-fired power plants. It will be an important feedstock for hydrogen production,” Elam wrote.
As oil and gas operators work to tell the public – and investors and even future employees – how they’re working to eliminate emissions, Elam said companies should emphasize those efforts.
“Perhaps the key is for industry to emphasize what it is doing now to prevent leaks and make the most of this valuable commodity, garnering recognition and support for the continued use as both a fuel and feedstock,” he wrote.
[ad_2]
Source link
