oil and gas industry
Newsletter
Credit: WildEarth Guardians/Flickr
New Interior Department policy to increase costs for oil drilling on public land
A long-awaited Interior Department policy will raise financial assurance and royalty rates, aiming to ensure cleaner operations and better returns for the public.
In short:
- The Department of Interior issued a new rule imposing stricter financial requirements for oil and gas companies on federal public land.
- Companies will now have to provide higher financial assurances for well cleanup and pay increased royalty taxes on extracted minerals.
- These changes aim to cut wasteful speculation, increase returns for the public, and protect taxpayers from environmental cleanup costs.
Key quote:
“These new regulations are the kind of common-sense reforms the federal oil and gas leasing program has needed for decades.”
— Athan Manuel, Sierra Club lands protection program director
Why this matters:
The new policy signifies a noteworthy shift in oil drilling regulation, aiming to ensure environmental protection and fairer returns for public resources, while also addressing climate concerns associated with methane emissions from abandoned wells. Read more: Oil and gas production responsible for $77 billion in annual U.S. health damages.
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Credit: Amelia Martin/BigStock Photos ID: 396427748
The looming cost of unaddressed oil well closures
As the oil industry faces a downturn, unplugged oil and gas wells present significant environmental and financial challenges, potentially burdening taxpayers with the cleanup bill.
Mark Olalde and Nick Bowlin report for ProPublica and Capital & Main.
In short:
- More than 2 million unplugged wells across the U.S. pose environmental hazards and contribute significantly to climate change through methane emissions.
- The financial provisions for well cleanup cover less than 2% of the estimated costs, leaving a substantial financial burden on taxpayers.
- Regulatory loopholes and insufficient enforcement allow companies to evade cleanup responsibilities, exacerbating the problem.
Key quote:
"The data presents an urgent call to action for state regulators and the Department of the Interior to swiftly and effectively update bond amounts."
— Shannon Anderson, organizing director of the Powder River Basin Resource Council
Why this matters:
The environmental and financial fallout from unplugged oil and gas wells affects public health and climate change indicating a pressing need for policy reforms to protect both the environment and taxpayer interests. Lax oversight and accounting sleights-of-hand help to make passing the buck on abandoned oil and gas wells a persistent and pernicious burden on the public good.
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Credit: WildEarth Guardians/Flickr
Oil firm settles with US and New Mexico over pollution issues
A Texas-based oil company has agreed to a multimillion-dollar settlement to tackle air pollution in America's top oil-producing area, with measures aimed at reducing emissions.
In short:
- Apache Corporation will pay $4 million in fines and invest more than $5 million in emission reduction at its Permian Basin operations.
- The settlement addresses Apache's failure to capture and control emissions, with violations detected via advanced surveillance methods.
- This effort is part of broader regulatory actions to enforce Clean Air Act compliance in the oil sector, signaling a significant push for environmental accountability.
Key quote:
“The ozone levels are rising, and you know, I think this is that moment where we have to hold up the mirror to industry and say, ‘If you don’t like what you see, it’s a reflection of your own effort.”
— James Kenney, New Mexico environment secretary
Why this matters:
This settlement is part of increased regulatory scrutiny on fossil fuel industry practices, aiming for a cleaner, healthier environment amidst rising ozone levels and greenhouse gas emissions. The harms from the fracking boom go well beyond cranking up global temperatures.
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Credit: Ricardo Cabral/Flickr
Texas' oil and gas industry faces scrutiny as carbon tariffs advance
Congress is weighing legislation that would authorize tracking the carbon intensity across a wide variety of sectors.
Newsletter
Photo by Alexis Mette on Unsplash
New Mexico Bureau of Land Management office scraps proposed fossil fuel regulations
Ten years of meetings and plans abruptly dumped; future plans uncertain.
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Texas’ oil and gas production surges even as federal government clamps down on environmental regulations
Crude oil and natural gas extraction in Texas reached record levels in 2023, according to the industry’s annual report.
Photo by Brad Weaver on Unsplash
As carbon tariffs gain momentum, Texas' oil and gas industry could see huge implications
As nations worldwide examine carbon tariffs in the model of what the European Union is set to begin rolling out in 2026, Congress is weighing legislation that would authorize the Department of Energy to start tracking the carbon intensity across a wide variety of sectors.
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