EPA to Propose Rules Cutting Methane Emissions From Oil and Gas Drilling

The U.S. Environmental Protection Agency on Tuesday will propose the first-ever federal regulations to cut methane emissions from the nation’s oil and natural-gas industry, according to people familiar with the move, which is part of President Barack Obama’s climate agenda. The EPA is expected to propose regulations aimed at cutting methane emissions from the oil and gas sector by 40% to 45% over the next decade from 2012 levels, said a person familiar with the plan. That was the goal the agency said earlier this year it would pursue when it first unveiled its plans. The move is part of a broader regulatory agenda Mr. Obama is pursuing as he seeks to make addressing climate change a legacy of his time in the White House. Earlier this month, the EPA issued final rules cutting carbon emissions from power plants 32% by 2030 based on emissions levels from 2005. Meanwhile, with the onset of the fracking boom, concerns over methane, a potent greenhouse gas, have grown within the administration. Methane has a warming effect on the planet more than 20 times greater than carbon dioxide, according to the EPA. The plan is sure to draw fire from some energy companies who argue that new regulations will require the installation of costly mitigation systems, as low oil prices pinch profits across the industry. Companies will be required to install technology that prevents methane from being inadvertently leaked and to monitor their operations for possible leaks. Many companies are already using this kind of equipment, according to industry executives and the EPA. Thanks largely to hydraulic fracturing, since 2005, domestic oil production has nearly doubled and natural-gas production has risen by about 50%, according to the U.S. Energy Information Administration...more