The US is offering $850 million in subsidies to clean up methane emissions from the oil sector

WASHINGTON (Reuters) – The U.S. government on Friday launched a tender that ends on Aug. 26 for $850 million in grants to help small oil and gas producers monitor and reduce methane emissions from their operations, a major part of the administration’s plan Biden’s effort to address leaks of the powerful greenhouse gas.

WHY IT’S IMPORTANT

Funds made available under the administration’s climate bill, known as the Inflation Control Act, will specifically help small oil and gas operators reduce methane emissions and gain access to methane detection and reduction technologies. It will be open to industry, academia, non-governmental organizations, Indian tribes, and state and local governments.

CONTEXT

Some smaller, independent oil and gas operators in the U.S. have strongly opposed the Environmental Protection Agency’s new methane standards, which affect hundreds of thousands of existing sources across the country, because they would place a financial burden on low-yielding wells, as well as the agency’s proposed methane fee on producers.

KEY QUOTE

“These investments under President Biden’s Investing in America program will deploy accessible and advanced technologies to better understand where methane emissions are coming from. It will help us better reduce harmful pollutants, address the climate crisis, and create good-paying jobs,” said EPA Administrator Michael Regan.

BY THE NUMBERS

Oil and gas production is the source of about one-third of the country’s methane emissions and is a key target for the Biden administration as it seeks to combat climate change. The United States is among more than 100 countries that have committed to reducing methane emissions by 30% by 2030 compared to 2020 levels. Low-production oil and gas drilling, which accounts for just 6% of total U.S. production, account for half of the methane emitted from all U.S. wells.

(Reporting by Valerie Volcovici; Editing by Jacqueline Wong)

Author: Valerie Volcovici