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Opinion

A methane plan that makes sense

Biden has a deal energy producers and environmentalists can back.

This editorial is part of a series published by The Dallas Morning News Opinion section to explore ideas and policies for strengthening electric reliability. Find the full series here: Keeping the Lights On.

Here’s something oil barons and environmental activists can agree on: It doesn’t make any sense to let natural gas vent into the air. Not only is natural gas a valuable fuel, it’s also mostly made up of methane, a potent greenhouse gas that contributes to climate change. Polluting the planet by wasting a good product is bad for everybody.

That’s why President Joe Biden’s initiative to reduce methane emissions, announced at the U.N. climate summit this week, is good policy. The key plank of the plan is to significantly slash methane leaks from oil and gas equipment, a move supported by both environmental activists and oil and gas industry associations.

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The petroleum industry is key to Biden’s strategy because natural gas often leaks from equipment along the entire supply chain, from production to processing to pipelines. According to the Environmental Protection Agency, methane emissions account for one-third of the global warming caused by greenhouse gases, and the oil and gas industry is the largest emitter of methane. The EPA expects proposed rules to regulate methane emissions would cut emissions by 41 million tons between 2023 and 2035; that’s more greenhouse gas than all U.S. passenger cars and commercial planes emitted in 2019.

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When an oil well is drilled, natural gas often comes out as a byproduct. In the past, that natural gas was allowed to waft into the air. Now, many regulators including those in Texas do not allow producers to vent natural gas, so they often flare the gas, reducing the effect on global warming. (The Texas Railroad Commission also doesn’t allow producers to flare without special permits, but the regulator hands out plenty.)

A better approach is to capture the natural gas in a pipeline system and sell it to homes and power companies that can make use of the gas, which EPA policy would require where pipelines are available. Further, proposed EPA rules would require better leak detection controls for natural gas processing and pipeline equipment.

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The White House also importantly intends to address another source of methane, abandoned oil and gas wells. The EPA estimates there are more than 3 million abandoned wells in the U.S., and 40% are not plugged and may continuously emit methane. Unplugged or poorly plugged old wells can cause all sorts of problems beyond methane emissions, such as releasing other types of air pollution or leaching into underground aquifers.

The president’s Build Back Better spending plan includes funding for well-plugging projects, and the initiative deserves consideration, even if the broader spending plan needs a more thoughtful and pared down approach. Regulators around the country and the world use a variety of methods, including regulations, taxes and fees, to cover the cost of environmental remediation after an energy project is finished, from plugging an oil well to reforesting a strip mine. The U.S. can find a fair way to pay for this important work.

The EPA estimates the new rules won’t affect oil and gas prices much, increasing the price of a barrel of oil or a thousand cubic feet of gas by pennies. If you figure a barrel of oil is the equivalent of 42 gallons of gasoline, then the regulations end up costing less per fill-up than going inside QT for a fountain drink.

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The American Petroleum Institute, a key industry group, issued a statement generally supporting the president’s initiative: “We support the direct regulation of methane from new and existing sources and are committed to building on the progress we have achieved in reducing methane emissions.” But the group stopped short of unequivocal enthusiasm, saying it looks forward to working with the EPA on a rule “that is effective, feasible and designed to encourage further innovation.”

Even as we transition to a post-fossil-fuel world, we cannot abandon the oil and gas industry that will keep the lights on and the cars running for some time. Tough, thoughtful methane regulation can hit the sweet spot of holding the oil and gas industry to clean, efficient standards while ensuring that folks can afford to heat their homes and drive to work.

Find the full opinion section here. Got an opinion about this issue? Send a letter to the editor and you just might get published.