Search
Close this search box.
Search
Close this search box.

What Biden’s New Methane Rules Means for Businesses

Joe Biden

For several years, methane gas has been an essential part of our lives. Many observers believe that it’s one of the purest fossil fuels as it’s a component of natural gas. Methan powers our everyday automobiles, ovens, turbines, and whatnot. However, it can also be hazardous when in excess, causing global warming, vision problems, and other adverse health effects.

As a result, there’s the need to cut down methane emissions. President Biden’s new methane regulations, released just recently, intend to reduce methane emissions to a more manageable level.

What are these rules? And how do they affect businesses? This article is going to explore these questions.

What Happened?

According to experts, methane is a greenhouse gas that can cause global temperatures up to 80 times as much as carbon dioxide.

Since it’s a natural gas component that powers a substantial part of the US electricity sector, it can find its way into the atmosphere through leaks from oil and gas wells, processing equipment, or even pipelines. Methane is also a natural by-product of landfills and agriculture. 

Climate change experts believe that reducing methane leaks is the best way to mitigate its effects. The new methane regulations were initiated by the Biden administration to curb the alarming methane emissions from oil and gas drilling and its related infrastructure.

The Environmental Protection Agency (EPA) proposed these rules, hoping that with proper enforcement and dedication on the part of stakeholders, methane pollution from fossil fuel companies would be cut down significantly.

The recently launched Global Methane Pledge, signed by President Biden, the head of the EU, and 103 other countries, has enjoyed widespread support. However, China, India, and Russia – incidentally three of the largest global sources of greenhouse gas – have not yet signed the pledge as of 2021.

The recently launched Methane Rules initiative by President Joe Biden’s administration includes the inspection of well sites and compressor stations. In addition, the rules include zero-emitting pneumatic controllers, new standards for pneumatic pumps, and the elimination of venting of associated gas from oil wells.

It also includes stronger emission parameters and stricter performance standards for existing and new sources.

Who Is Being Affected?

At first, it may seem that only businesses in the oil and gas industry are affected. However, the new rules cause a string of chain reactions throughout the global supply chain.

First of all, companies that cause methane emissions have to monitor, detect and control leaks and other activities to keep their emission levels below a set threshold. A compliance analyzer might be a need for these companies.

This includes repairing leaks from new and existing wells, equipment, and pipelines. All these measures add significantly to operational costs. However, the price is also high for noncompliance: a fee will be imposed on oil and gas companies that emit methane above the thresholds. 

This and many other measures included in President Biden’s methane rules are expected to cost the oil and gas industry an estimated $1.2 billion annually. 

What does this mean for other businesses? The extra cost oil and gas producers incur as a result of compliance is passed down the supply chain. As a result, sectors that rely on fossil fuels such as transportation and manufacturing have to bear the cost as well. Other industries that rely on transportation and manufacturing might also be forced to adjust their prices as well.

Consequently, fuel prices shoot up, and prices of raw materials are along with it. The cost of transportation, both freight and public, also goes up. This causes a general increase in the price of other commodities and services.

Other sectors likely to be affected indirectly by the methane rules are the airline, aerospace, and automobile industries. Production levels are likely to fall as a result of reduced demand and increased costs of production.

Finally, the agricultural sector will also be impacted significantly by the new rules, and not just because it depends on fossil fuels to bring farm products to the market. Agricultural methane is a by-product of the decomposition of livestock manure. Paddy rice cultivation also encourages the growth of methane-emitting bacteria. 

Agriculture accounts for 9.6% of methane emissions in the U.S. Livestock alone generate 36% of agricultural methane emissions. Farmers need to play their part by taking advantage of incentives designed to battle methane emissions across the food chain to reduce these kinds of methane emissions.

The Way Forward

Despite the stringent nature of the methane rules, $775 million in incentives and grants have been made available to oil and gas companies in the sector. They are meant to help the companies stay and survive under the threshold.

Although the oil and gas industry is a pivotal part of the US economy, most other sectors rely on it; it’s also one of the largest greenhouse gas producers.

Considering the alarming effects of global warming as a result of methane and other related gasses, the best possible way to go is to try and reduce emission levels. The best path is to use emissions monitoring systems. 

Further, experts are developing more sustainable fuel and energy sources to substitute fossil fuels through research and industry innovation.

Businesses can rely on some of these sources, including solar and wind power, for their operations. Fuel-efficient machines and infrastructure are being designed day in day out to cut down methane emissions. Finally, new advancements in agricultural technology can help reduce emissions coming from livestock farming and other activities that produce methane.

 


Subscribe to Our Newsletter

Related Articles

Top Trending

Aria Lee Ethnicity
American Adult Entertainer Aria Lee Ethnicity Revealed [2024 Updates]
Jewelz Blu Age
Jewelz Blu Age: The Life and Career of The German Actress [2024 Update]
Trevor Bauer Case Legal Warning Entrapment
Legal Expert Warns: 'Some Women May Try to Ensnare You,' in Trevor Bauer Case
Famous People Birthday April 18
Famous People Birthday April 18: 15 Icons Born on This Day
victoria cakes age
Victoria Cakes Age and Vital Statistics: The Life of a Rising Star

LIFESTYLE

Gift Ideas for Men
10 Thoughtful and Unique Gift Ideas for Men Who Have Everything
pohela boishakh 2024
Pohela Boishakh: Celebrating Bengali Culture and Heritage Festivities
Korean Beauty Secrets
10 Korean Beauty Secrets for Youthful Energy: Stay Young & Vibrant
Ancient Philosophers Guide to Happiness
Unlocking Happiness: Timeless Lessons from Ancient Philosophers
eid decor diy
Eid Decor DIY: 15 Creative Ideas to Spruce Up Your Home for the Festivities

Entertainment

Aria Lee Ethnicity
American Adult Entertainer Aria Lee Ethnicity Revealed [2024 Updates]
Jewelz Blu Age
Jewelz Blu Age: The Life and Career of The German Actress [2024 Update]
Famous People Birthday April 18
Famous People Birthday April 18: 15 Icons Born on This Day
victoria cakes age
Victoria Cakes Age and Vital Statistics: The Life of a Rising Star
Lexi Luna Height
Lexi Luna Height: An Insight Into the American Model and Film Star

GAMING

Pokemon Go Updates Avatars Maps Photos
Pokemon Go Update: New Changes to Avatars, Map, Photos & More
Apple's First Approved iPhone Emulator Launches
Apple's First Approved iPhone Emulator Launches, Then Gets Removed
Prime Gaming
Is 2024 the Year Prime Gaming Takes Off?
Online Games for Stress Relief
Finding Calm in the Click: A Comparative Look at Online Games for Stress Relief
Apple Introduces Retro Game Emulators App Store
App Store Welcomes Retro Game Emulators: Apple's New Gaming Era

BUSINESS

Choose the Right ERP System
How to Choose the Right ERP System for Your Business?
Apple CEO Discusses Investment Plans
Apple CEO Discusses Investment Plans with Indonesian Leader
DEI Strategy
A Roadmap for Implementing and Sustaining a DEI Strategy
Goldman Sachs Crushes Estimates
Goldman Sachs Crushes Estimates: Stock Jumps on Stellar Q1 2024
Strongest and Weakest Currencies of Africa
List of 10 Strongest and Weakest Currencies of Africa in 2024

TECHNOLOGY

How to Use Technology Mindfully
How to Use Technology Mindfully: Essential Tips for Balanced Tech
Quick Ways to Remove a Trojan From Your Mac
Quick Ways to Remove a Trojan From Your Mac
Pixel Launcher Upgrades in Android 15
Explore the Latest Pixel Launcher Upgrades in Android 15!
Google One VPN Ends
Google One VPN Ends, Pixel VPN Upgrades Coming Soon!
How to Translate Video to English Online
How to Translate Video to English Online [Updated]

HEALTH

Rock Hudson Last Days
Rock Hudson's Last Days: The Untold Story of His Final Moments
Best Stress Relief for Each Zodiac Sign
Relaxation by the Stars: Best Stress Relief for Each Zodiac Sign
Covid 19 No Link Asthma Risk Study
COVID-19 Does Not Raise Asthma Risk, Researchers Confirm
Williams Syndrome Famous People
5 Famous People in the World Dealing With Williams Syndrome [2024 Update]
5 Reasons You Should Go for Facelift Surgery
5 Reasons You Should Go for Facelift Surgery