MAY 12, 2016: Today, the U.S. Environmental Protection Agency published its final rules for reducing emissions of methane from new and modified sources in the oil and natural gas industry.
For years, investors have pressed companies to reduce their methane emissions with proven, cost effective, technologies and have supported intelligent policy solutions to cut methane waste. Recently, $3.6 trillion in investors spoke up in support of the Obama Administration’s methane policy announcements.
These new rules are expected to reduce 510,000 short tons of methane in 2025, the equivalent of reducing 11 million metric tons of carbon dioxide. We believe this rule is important because methane that leaks is lost revenue for companies and investors and methane is 86 times more potent as a greenhouse gas than carbon dioxide, over a 20-year period. While fracking is most commonly associated with hazardous impacts to water sources, methane “flares” and leaks are an all too common consequence of oil and gas extraction. The potent climate impact of leaking methane lessens natural gas’ ability to play a role in a cleaner energy mix.
Trillium welcomes the EPA’s final rule on new and modified methane sources and see it as a critical step in addressing this issues that has loomed over the oil and gas industry. It also sets a strong foundation for the forthcoming rule on existing sources of methane emissions. We urge the industry to embrace the opportunity to fully adopt and implement proven and cost effective technologies to cut methane waste and to be fully transparent about its management of methane emissions.
For more information: Jonas Kron, Trillium Asset Management, email@example.com, (503) 894-7551.