US EPA’s methane rules seen as too restrictive, threatening innovation

S&P Global Commodity Insights

November 15, 2023

Environmental Protection Agency rules should help drive methane emission reductions in the US oil and gas industry this decade, but they risk stifling innovation if they are overly prescriptive, according to speakers at a Nov.15 event hosted by the Center for Strategic and International Studies.

EPA proposals for updates to methane performance standards have included language that technology must be 'commercially available,' which producers like Chevron and BP have criticized as potentially restricting innovation.

“Right now the proposals seem to dis-incentivize [new technologies] so I'm really hoping when we get to final we're going to be encouraging people to use the most sensitive, accurate technologies," said Vanessa Ryan, methane reduction manager at Chevron.

Ryan pointed to the rapid pace of change in developing technologies. "We've desktop evaluated 60 technologies and field piloted almost 20. This is up from just two five years ago."