EPA Targets Methane: Game Changer for Clean Gas Market?

From Dirty Driller to Eco Hero: Can Gas Make the Green Cut?

• The EPA issued a final rule on December 2nd, 2023, aiming to significantly reduce methane emissions from oil and gas operations.

• The rule mandates stricter monitoring, leak detection & repair (LDAR), and phasing out routine flaring.

• This raises the bar for methane emissions, but some producers already achieve much lower levels with certified/differentiated gas.

• The rule supports the certified/differentiated gas movement by pushing emissions reduction and requiring monitoring equipment used to score this gas.

• However, the 0.2% methane target isn't a high bar - producers with <0.05% emissions still see room for a differentiated market.

• Next steps: examine how production of low-emissions gas is tracked and verified, as there's no established consensus yet.

• Rule applies to new and existing facilities, with phased-in requirements over several years.

• Super Emitter Program allows third-party detection of large emission events.

• Methane Emissions Reduction Program (MERP) from the Inflation Reduction Act charges fees for non-compliant facilities starting in 2025.

• The Chambers Brothers' song "Time Has Come Today" serves as a metaphorical call to action for this environmental fight.