Biden Inflation Act Gives EPA New Weapons to Pursuing Their Climate Change Jihad – Are You Stand Out for That?
Essay by Eric Worrall
Think gasoline is expensive now? From 2024, US oil and gas companies will face impossible operating conditions, with the US EPA promising to impose a $900/ton methane release fee, increasing to $1500/ton by year 2026.
Methane increases climate change. America has a new plan to cut it.
Under the Inflation Reduction Act, the United States could make the oil and gas industry pay for methane leaks — but the law eliminated a controversial source of pollution.
BYSARAH GIBBENS
PUBLISHED AUGUST 19, 2022The Inflation Reduction Act is the most significant investment the US government has made to combat climate change, placing more than $369 billion on projects that will reduce planet-warming emissions.
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Cutting methane emissions into the atmosphere is one of the easiest and most effective ways to combat climate change, according to a new study. The United Nations report was released last year.
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What does the new invoice do?
Shindell said environmentalists have long advocated charging for greenhouse gas emissions, and tackling methane could ultimately save oil companies money. When CO2 is released, it is a by-product of fossil fuel burning and is no longer valuable to companies. However, methane is still present when it leaks out of oil and gas facilities; if it can be caught it can used for energy. That means preventing leaks will save companies money.
To address methane emissions in water, The IRA will impose a fee of $900 per tonne of methane starting in 2024. By 2026, the per tonne fee will increase to $1,500. Notably, this charge will only affect larger oil and gas facilities, leaving around 60% of industries responsible for methane removed.Kleinberg estimates.
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The EPA is set to publish updated methane regulations early next year. These rules will dictate when methane emissions from a single facility are subject to a charge.
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It is clear that the United States has a few chances to vote for politicians who will repeal the misleadingly named Biden Inflation Act, before these punitive penalties are imposed.
Methane release is a fact of life if you run an oil and gas facility, there’s no way to avoid it. But the main threat of penalties is the huge operational risk, which will have to be insured – a significant and completely unnecessary addition to operating costs, that will be passed on to the consumer.
It is not possible to completely prevent methane leaks. Gas pipes suddenly cracked over time because Unrefined hydrocarbons clog pipe metal. Rigorous testing helps, but at any time a very small, overlooked defect can suddenly propagate right through the pipe wall, resulting in tons of product spilling through the crack before the problem is recognized. see. The problem cannot be eliminated – but trying to minimize the problem will impose huge costs on manufacturers.
In my opinion, this methane leak penalty is a punitive tax created by those who want to sabotage the entire domestic hydrocarbon mining industry of the United States, but have yet to take action and simply pay for it. its door.
Even the possibility that such penalties could be imposed would have a significant impact on domestic oil and gas investment in the United States, which in turn could put further pressure on gasoline and home heating prices.
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