US Lays Out Plan at COP28 to Slash Climate ‘Super Pollutant’ from Oil and Gas

 Michael Regan, administrator of the US Environmental Protection Agency, speaks at the US Center at the COP28 UN Climate Summit, Saturday, Dec. 2, 2023, in Dubai, United Arab Emirates. (AP)
Michael Regan, administrator of the US Environmental Protection Agency, speaks at the US Center at the COP28 UN Climate Summit, Saturday, Dec. 2, 2023, in Dubai, United Arab Emirates. (AP)
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US Lays Out Plan at COP28 to Slash Climate ‘Super Pollutant’ from Oil and Gas

 Michael Regan, administrator of the US Environmental Protection Agency, speaks at the US Center at the COP28 UN Climate Summit, Saturday, Dec. 2, 2023, in Dubai, United Arab Emirates. (AP)
Michael Regan, administrator of the US Environmental Protection Agency, speaks at the US Center at the COP28 UN Climate Summit, Saturday, Dec. 2, 2023, in Dubai, United Arab Emirates. (AP)

The Biden administration on Saturday unveiled final rules aimed at cracking down on US oil and gas industry releases of methane, part of a global plan to rein in emissions that contribute to climate change.

The rules, two years in the making, were announced by US officials at the United Nations COP28 climate change conference in Dubai. The United States and other nations attending the summit were expected to detail how they will achieve a 150-country pledge made two years ago to slash methane emissions by 30% from 2020 levels by 2030.

Methane tends to leak into the atmosphere undetected from drill sites, gas pipelines and other oil and gas equipment. It has more warming potential than carbon dioxide and breaks down in the atmosphere faster, so reining in methane emissions can have a more immediate impact on limiting climate change.

"On day one, President Biden restored America's critical role as the global leader in confronting climate change, and today we've backed up that commitment with strong action," US Environmental Protection Agency Administrator Michael Regan said in a statement.

EPA's new policies would ban routine flaring of natural gas produced by newly drilled oil wells, require oil companies to monitor for leaks from well sites and compressor stations and establishes a program to use third party remote sensing to detect large methane releases from so-called "super emitters," the agency said in a statement.

The rules would prevent an estimated 58 million tons of methane from reaching the atmosphere between 2024 and 2038 -- nearly the equivalent of all the carbon dioxide emissions from the power sector in the year 2021, EPA added.

Environmental groups praised the rules.

"Strong methane standards are essential to curb climate pollution and better protect the health and safety of workers and communities living near fossil fuel extraction," Earthjustice's vice president of litigation for climate and energy, Jill Tauber, said in a statement.

The rule will produce climate and health benefits of up to $7.6 billion a year through 2038, EPA said. It will also increase recovery of up to $13 billion of natural gas over the time period.

The rule differs somewhat from draft proposals EPA released in 2021 and 2022, in part by giving the industry more time to comply.

The agency also tweaked the Super Emitter Program so that third parties send information on methane leaks to EPA directly for verification. Previously they would have been able to send the information directly to companies, a provision the oil and gas industry said would put too much power in the hands of environmental groups that search for methane leaks.

The American Petroleum Institute, an oil and gas industry trade group, said it was reviewing the rule.

"To be truly effective, this rule must balance emissions reductions with the need to continue meeting rising energy demand," Dustin Meyer, API senior vice president of policy, economics and regulatory affairs, said in a statement.



Saudi Energy Minister: Petroleum and Petrochemical Law Guarantees Fair Competition for Investors

Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
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Saudi Energy Minister: Petroleum and Petrochemical Law Guarantees Fair Competition for Investors

Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)

Shortly after the Saudi Cabinet approved the Petroleum and Petrochemical Law, Energy Minister Prince Abdulaziz bin Salman said on Tuesday the regulation aims to achieve a set of goals, mainly regulating petroleum and petrochemical operations, in a manner that contributes to economic growth.

The law also backs efforts to attract investments, elevates employment rates, upgrades energy efficiency, safeguards consumers and licensees, while ensuring product quality and creating a competitive environment that fuels fair economic yields for investors, the Minister said.

Prince Abdulaziz expressed his gratitude to Custodian of the Two Holy Mosques, King Salman bin Abdulaziz and Prince Mohammed bin Salman, Crown Prince and Prime Minister, for the Cabinet’s decision to approve the new law.

He praised the Saudi leadership for its support and empowerment of the energy sector, and its contribution in boosting the sector’s productivity to achieve the targets of Vision 2030.

The new law helps in building the local energy sector’s legislative framework, Prince Abdulaziz went on to say.

“This is accomplished by leveraging the top-tier international practices, boosting performance, achieving national objectives, and ensuring the optimal use of petroleum and petrochemical resources,” he said.

The new law, replacing the Petroleum Products Trade Law, helps ensure the security and reliability of local petroleum and petrochemical supplies, the minister explained.

This is on top of achieving optimal utilization of raw materials, supporting the localization of the industry’s value chain, enabling national strategies and plans, and enhancing the control and supervision of petroleum and petrochemical operations to step up compliance with laws and regulations, he added.

The new law combats practice violations by regulating the activities of use, sale, purchase, transportation, storage, export, import, packaging, and processing of these resources.

It also regulates the establishment and operation of distribution channels and petrochemical facilities, said Prince Abdulaziz.