Regulating methane emissions through the US Environmental Protection Agency (EPA) is a central component of the Biden Administration’s plans to reduce methane emissions by 30% below 2020 levels by 2030. The initial November 2021 rule proposed to update performance standards and requirements around monitoring and repairing leaks for both new and existing wells. Older wells have previously not been subject to EPA methane standards.
In November 2022, the EPA released a supplemental proposal to its methane regulations. This second part of the rule builds on the initial proposal by specifying rules for methane emission leak detection and repair, including at smaller wells, alongside providing more details on key components such as flaring and technology use.
The EPA published its finalized methane rule in December 2023 following comment periods on its initial (Nov 2021) and supplemental (Nov 2022) proposals. Despite heavy negative engagement from the oil and gas industry, the final rule included leak detection and repair measures for small and large leaks, restrictions on routine flaring, and a zero-emitting standard for pneumatic controllers and pumps.
Final rule published in December 2023
Final rule published in December 2023
A number of oil and gas companies have provided statements on the US federal government's proposed supplemental regulations for methane emissions from the oil and gas sector. Chevron, BP, Devon Energy, and Occidental Petroleum issued mixed support for the proposals, expressing both positive and negative positions positions on the regulations. Shell, meanwhile, appears to communicate a more broadly supportive position, however, it also avoids commenting on key elements of the regulations.
Several oil and gas entities opposed the US federal government’s proposed supplemental regulations for methane emissions from the oil and gas sector. Comments submitted by ExxonMobil and Coterra Energy appear unsupportive of the proposal. Similarly, submissions made by industry associations such as the American Petroleum Institute (API), American Gas Association (AGA), American Exploration & Production Council (AXPC), Texas Oil & Gas Association (TXOGA), and the US Chamber of Commerce have opposed key elements of the proposal.
In a 20th November Financial Times article, BP’s head of US business stated support for the US Environmental Protection Agency’s 2022 Methane Regulations, and emphasized the need to stop flaring.
On July 6th 2022, the Vice President of Upstream Policy at the American Petroleum Institute (API), Kevin O’Scannlain, wrote an op-ed in Real Clear Energy advocating for the removal of restrictions on oil and gas leasing in US federal lands and waters. O’Scannlain also called for a “robust” 5-year leasing program in the Outer Continental Shelf. The article also opposed the US Environmental Protection Agency’s regulation of methane in the Permian Basin, calling it “unproductive” and “burdensome”, and went on to use this argument to support the expansion of Section 45Q tax credits for the development of carbon capture, utilization, and storage (CCUS).
The following table lists companies and industry associations that have engaged on the EPA's 2022 methane regulation. Click on an entity name to view the full profile on its climate policy engagement.
| Influencemap Performance Band | Organization | Policy Position | Policy Engagement Intensity |
|---|
