Perhaps the COP 26 event had something to do with it, or the availability of satellite images showing what oil and gas methane emissions are really like. Time will tell if the regulatory environment will loosened to enable Russian supplies to be displaced more readily.
This post reviews the regulation and incentives in the US, EU and UK to drive reduced methane emissions from oil and gas production.
Future Energy Partners is a consultancy specialising in oil and gas emissions management, which can help you work out the best way to comply or achieve the required reductions. If you are interested in discussing a methane emissions management / assessment project, please let us know here.
The US Environmental Protection Agency announced in Nov 2021 plans for a new Clean Air Act rule to drive reductions in methane emissions and emissions of VOCs. EPA intends to issue the supplemental proposal in 2022, and to issue a final rule before the end of 2022.
The plan includes updated and broadened methane and VOC emission reduction requirements for new, modified,and reconstructed oil and gas sources, including from intermittent vent pneumatic controllers, associated gas, and well liquids unloading.
The EPA is taking comments on how to structure a community monitoring program that would empower the public to detect and report large emission events for appropriate follow-up by operators for possible further development in a supplemental proposal.
The EPA calculates that it's proposed rule would create costs of "pennies" per barrel of oil or thousand cubic feet of gas, and it would reduce 41m tons of methane emissions over 2023 to 2035, equivalent to the CO2 emitted from all US passenger cars and commercial aircraft in one year (2019), and mean a reduction in methane emissions by 74 per cent by 2050. It also calculates the climate benefit of the rule of $4.5bn a year, based on the social costs of greenhouse gases.
In December 2021 the European Commission presented a proposal to regulate methane emission reductions in the energy sector. A feedback period on the proposal opened on 15 December 2021 and closed on 28 March 2022. The aim is to align EU energy laws with EU Climate Law's 2030 emission reduction target.
It aims to address gaps in current legislation, including for methane emissions from upstream exploration and the production of oil and natural gas, but also those from the gathering and processing of natural gas, the transmission, distribution and underground storage of gas, and liquid gas terminals.
In the UK, industry body NS Transition Authority??? Or is it the old OGUK? Offshore Energies UK agreed a '6 key actions' plan with the UK government as part of the " North Sea Transition Deal" of March 2021.
FURTHER INFORMATION / SOURCE
We could segment the oil and gas sustainability challenge into three time scales - long term (field development), medium term (investment in existing operations) and immediate term (how we are operating today). And of these, the immediate term may be the most interesting.
Guyana’s new oil production may generate similar wealth per person as Qatar, Kuwait and Norway. But what should be done with the gas – and is the industry going to be well governed? Topics discussed at our webinar