In a major step towards combating climate change, the Biden administration has announced the final rules aimed at curbing methane emissions from the U.S. oil and gas industry. These comprehensive regulations were presented at the United Nations COP28 climate change conference in Dubai where the United States, along with other nations, is expected to outline their strategies to reduce methane emissions by 30% from 2020 levels by 2030.

Methane, a potent greenhouse gas, often escapes undetected from drilling sites, gas pipelines, and oil and gas equipment. It has a greater warming potential than carbon dioxide and breaks down in the atmosphere more quickly, making it crucial to rein in methane emissions to swiftly address climate change concerns.

The new standards, praised as a significant milestone in addressing climate change, will not only enable the United States to meet its international commitments but also improve air quality for communities across the country. U.S. Environmental Protection Agency Administrator, Michael Regan, emphasized the importance of these regulations in aggressively tackling climate change while ensuring cleaner air for everyone.

Vice President Kamala Harris, highlighting the methane regulations, proclaimed that these initiatives demonstrate the Biden administration's commitment to restore the United States as a global leader in the fight against climate change. She underlined that the administration's actions at COP28 mirror the urgent need to address this crisis collectively.

The Environmental Protection Agency's new policies encompass several crucial measures to combat methane emissions. Notably, the rules will prohibit the routine flaring of natural gas from newly drilled oil wells, require oil companies to monitor for leaks from well sites and compressor stations, and establish a program to detect significant methane releases from "super emitters" using third-party remote sensing. These regulations are estimated to prevent approximately 58 million tons of methane from entering the atmosphere between 2024 and 2038, equivalent to nearly all carbon dioxide emissions from the power sector in 2021.

New Mexico Governor Michelle Lujan Grisham commended the new methane rules, highlighting that the United States can now lead by example and encourage other countries to adopt similar measures. She stated, "Now we've got credibility to make sure that we can demonstrate to the whole world that we can hold polluters accountable and move the needle."

Environmental groups have applauded the efforts to establish strong methane standards, as they play a crucial role in curbing climate pollution and safeguarding the health and safety of workers and communities residing near fossil fuel extraction sites. Jill Tauber, Earthjustice's vice president of litigation for climate and energy, emphasized the significance of these standards in a statement.

According to the Environmental Protection Agency, these new rules are expected to generate annual climate and health benefits of up to $7.6 billion through 2038. Additionally, there is a potential to recover approximately $13 billion worth of natural gas during the same period.

Notably, the final rule incorporates some changes from draft proposals released by the Environmental Protection Agency in 2021 and 2022. These modifications provide the industry with additional time to comply with the regulations. The agency also revised the Super Emitter Program, ensuring that third parties directly send methane leak information to the EPA for verification rather than sending it directly to the companies. This change addresses concerns raised by the oil and gas industry, which believed that environmental groups would hold excessive power in searching for methane leaks.

The American Petroleum Institute, a prominent oil and gas industry trade group, has indicated that it is currently reviewing the new rule. Dustin Meyer, API's senior vice president of policy, economics, and regulatory affairs, emphasized the need for the rule to balance emissions reductions with the rising demand for energy.

Exxon CEO Darren Woods stated that while the company needs to review the final rule, they are conceptually supportive, provided it is reasonable and sound. Similarly, BP expressed active collaboration with the EPA during the rule-making process and welcomed the finalization of the regulations.

With the implementation of these stringent rules, the United States aims to set an example for other countries and make significant strides in reducing methane emissions in the oil and gas industry. The Biden administration's efforts reflect a commitment to address the urgent need to combat climate change and protect the environment for future generations.