Here’s what oil and gas producers face in methane emissions fees

A new report suggests that had the Biden administration’s methane emissions fees been in effect last year, some of the top 25 U.S. oil and gas producers, including several in Oklahoma, would have been liable for $1.1 billion in charges.

It also means those same companies will likely be paying higher fees as the Environmental Protection Agency begins to implement a provision of the 2021 climate law known as the Inflation Reduction Act. The provision directs the EPA to charge $900 a metric ton of methane above a certain threshold released into the atmosphere this year, reported Grist.

The oil and gas industry is targeted because of its methane leaks from wells around the country. More than 2.5 million metric tons of methane were reported to have been emitted in 2022 across the U.S.

The $1.1 billion 2023 estimate came in an analysis by Geofinancial Analytics, a private data provider. It reviewed the top 25 oil and gas producers including Chesapeake Energy, ConocoPhillips, Continental Resources, Coterra Energy, Devon Energy, EOG Resources, Ovintiv and Southwestern Energy, the firm that earlier this year merged with Chesapeake Energy in Oklahoma City.

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The post Here’s what oil and gas producers face in methane emissions fees first appeared on Oklahoma Energy Today.