Regulatory Push Risks Natural Gas Progress
Thursday August 4, 2016
Some context for legal challenges to EPA's proposed rule for new oil and natural gas sources, filed individually this week by a coalition of states, API and other organizations.
As we've noted before, methane emissions from field production of natural gas are falling mainly because industry wants to capture as much of the primary component of natural gas as possible, to deliver to customers. Industry is on it, deploying technologies and know-how to prevent emissions during production. Bottom line: In a period of soaring production, we've had falling methane emissions.
This is happening under the current regulatory regime. Kyle Isakower, API vice president of regulatory and economic policy earlier this year:
The industry is already leading the way on methane reductions because it is good for the environment and good for business. Even as oil and natural gas production has risen dramatically, methane emissions have fallen, thanks to industry leadership and investment in new technologies. It doesn't make sense that the administration would add unreasonable and overly burdensome regulations when the industry is already leading the way in reducing emissions.â€
Even so, EPA has chosen to embark on a new regulatory push, one that could potentially disrupt measures now in place. API's lawsuit asks the D.C. Circuit Court of Appeals to assess the EPA's rule on the grounds that the agency has exceeded its statutory authority. API managing counselJohn Wagner:
Consumers and businesses are seeing significant savings through lower energy costslargely driven by the revolution in U.S. shale energy production. The implementation of duplicative and costly regulations could discourage natural gas production, disrupt our progress reducing emissions, and increase the cost of energy for American consumers.â€...