IPAA: EPA’s “overbearing" methane regulations to harm U.S. oil, natural gas producers
WASHINGTON – Independent Petroleum Association of America (IPAA) President and CEO Jeff Eshelman released a statement ahead of the House Energy and Commerce Committee hearing on Wednesday, Jan. 10 at 10:00 a.m. ET examining Environmental Protection Agency (EPA) actions affecting American oil and natural gas operations, particularly those regulations and programs related to methane emissions.
IPAA President & CEO Jeff Eshelman said, "IPAA appreciates the committee’s review of this important issue – the EPA’s overbearing regulatory regime will undoubtedly harm America's oil and natural gas producers, increase energy supply costs and harm the economy. It is estimated that EPA’s recently finalized methane rules will lead to the shutdown of 300,000 of the nation’s 750,000 low production wells. The federal government should not use the regulatory process to eliminate much needed sources of energy. Independent oil and natural gas producers are committed to effectively managing their methane and volatile organic compounds (VOC) emissions. At issue is developing appropriate techniques that reflect both the emissions profile and the economic challenges of each segment of the industry from large to small."
Background. In Wednesday’s hearing, the Committee will hear from three independent producers:
- Drew Martin, Managing Member and Director of Finance, Miller Energy;
- Patrick Montalban, Chairman and CEO, Montalban Oil and Gas Operations;
- Mike Oestmann, President and CEO, Tall City Energy
The Methane Emissions Reduction Program (Methane Tax) that was included in the Inflation Reduction Act passed by Congress complicates industry efforts to plan and comply with EPA’s rule to address emissions from oil and natural gas production. The tax was passed without any committee hearings, expert testimony, or impact analysis on prices to consumers, impact on domestic production, or impact on industrial manufacturing consumers.
The Independent Petroleum Association of America (IPAA) is a national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 91% of the nation’s oil and natural gas wells. These companies account for 83% of America’s oil production, 90% of its natural gas and natural gas liquids (NGL) production, and support over 4.5 million American jobs.
