US to charge oil and gas producers for methane emissions for first time

Bloomberg revealed that US oil and gas producers will pay fees for some methane emissions for the first time under a new regulation expected to be finally approved by the Biden administration today.

This regulation is the final part of a three-part regulatory package aimed at regulating methane emissions, as it imposes penalties of $900 per metric ton of emissions exceeding the government limit, with these fees expected to rise to $1,500 per metric ton by 2026.

Trump had withdrawn the US from the Paris climate agreement during his previous term, pledging to increase US energy production.

The new fees have faced opposition from oil companies, which considered them a tax on gas production, and have lobbied lawmakers to cancel them next year.