• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Oil prices going Up? NO!
  • 13 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 13 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 18 hours Oil prices going down
  • 21 hours Could oil demand collapse rapidly? Yup, sure could.
  • 11 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 2 days Gazprom Exports to EU Hit Record
  • 18 hours Saudi Arabia turns to solar
  • 2 days Could Venezuela become a net oil importer?
  • 5 hours Are Electric Vehicles Really Better For The Environment?
  • 5 hours Kenya Eyes 200+ Oil Wells
  • 20 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 19 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 11 hours OPEC soap opera daily update
The Last Oil Frontier In The Gulf Of Mexico

The Last Oil Frontier In The Gulf Of Mexico

The potential of the U.S.…

Global Energy Advisory – 22nd June 2018

Global Energy Advisory – 22nd June 2018

Bottlenecks in the Permian are…

Obama Moves To Limit Methane Emissions

In the last year of his presidency, Barack Obama appears determined to leave a legacy of limiting greenhouse gases believed to cause climate change, first by reducing the industrial burning of coal, and next by limiting the emission of methane from oil and gas fields on federal lands.

On Friday the Interior Department’s Bureau of Land Management proposed limits on flaring, the practice of burning off excess methane produced in drilling for oil and gas, and a requirement that energy companies conduct periodic inspections for methane leaks.

Related: How Soon Could A Sustained Oil Price Rally Occur?

The rules, which would go into effect by the end of the year after public hearings on their implementation, would apply only to drilling on federally owned lands, which host drilling for only 5 percent of the country’s oil supply and 11 percent of its gas.

During the growth of U.S. energy production over the past decade, due in large part to new drilling techniques such as hydraulic fracturing, companies drilling in the United States have relied on flaring or simply allowing excess methane to escape into the atmosphere if there’s no way to capture the gas. The new rules would require drillers to capture methane and make it available as fuel.

But the Interior Department says it would go a long way to achieving Obama’s goal of reducing U.S. methane emissions by between 40 percent and 45 percent below their levels in 2012 by 2025. The bad news is that, if approved, they would cost the domestic energy industry between $125 million and $161 million a year.

Related: Iran Poses A Threat To Gazprom

The White House says methane is a greenhouse gas 25 times stronger than carbon dioxide in warming the Earth’s atmosphere, but methane emissions from oil and gas production dropped about 15 percent between 2005 and 2012, according to administration data. Still, Washington estimates these emissions will rise by 25 percent by 2025 unless it acts to limit them.

“[W]e should be using our nation’s natural gas to power our economy, not wasting it by venting and flaring it into the atmosphere,” Interior Secretary Sally Jewell said in a statement. “We need to … cut down on harmful methane emissions and use this captured natural gas to generate power and provide a return to taxpayers, tribes and states for this public resource.”

Environmental groups applauded the move. “[T]oday’s action from the Bureau of Land Management represents a positive step towards reining in this industry’s misuse of our public lands,” said Michael Brune, president of the Sierra Club.

Related: Citigroup: Oil Is The “Trade Of The Year”

Republicans in Congress rejected the move. One, Rep. Rob Bishop of Utah, chairman of the House Natural Resources Committee, said in a statement that it would be too expensive and “further dissuade and expel [energy] producers from federal land.”

Republican House Speaker Paul Ryan of Wisconsin said the plan would hurt individual Americans. “As the markets drop, and America’s saving and retirement portfolios suffer, it’s astonishing that this president would seek to further cripple America’s energy industry,” he said. “The American people’s welfare should not have to compete with the president’s desire to cement his climate legacy.”

In fact, even if the rules survive the public-comment hearings, there’s a chance they’ll never get a chance to go into effect. They’re not due to be implemented until the end of December, only weeks before Obama leaves office. If he’s succeeded by a Republican, the new president may rescind them.

By Andy Tully of Oilprice.com:

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • erin wells on January 27 2016 said:
    So what is Obama doing about plugging the leak in California? Should be moving heaven and earth to fix this huge 100,000 lb per hour methane leak! But just all talk!
  • EdBCN on January 25 2016 said:
    "...limiting greenhouse gases believed to cause climate change." That kind of phrasing makes you look like one of those insane denialists.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News