Methane Rule Puts US Output at Risk

摘要

The first-ever US federal regulation aimed at controlling methane emissions from new and modified oil and gas infrastructure is unlikely to have an immediate impact on natural gas output, where the bigger threat comes from low prices. But the standards, released last week, will create a massive headache for producers in terms of extra paperwork at a time when many are laying off staff, and the additional costs could have an impact on production longer term (WGI Nov.25 '15). "These producers are being asked to do more with regulations when they have less of a workforce," Sandra Snyder, an attorney with Washington-based Bracewell, said. "This means additional monitoring and equipment, and a lot of paperwork and record-keeping." Kyle Cooper, director of research at Houston-based consultancy IAF Advisors, agrees. Complying with the methane-curbing regulation from the US Environmental Protection Agency (EPA) isn't as simple as hiring a single person or adding work to existing employees' schedules. "Keeping extra records and having somebody oversee it requires a lot more manpower that doesn't actually produce anything extra except paperwork," Cooper said. "Eventually, that is going to restrain production because you are spending money on something other than production."