API and oil and gas firms oppose Methane Emissions Reduction Act
The American Petroleum Institute (API) and 130 energy and manufacturing firms across the natural gas and oil supply chain are opposing legislation that would place a fee on methane.
The group recently sent a letter to the US Senate Committee on Environment and Public Works to voice their concerns.
The organisations, led by API, explain that the proposal is a “pay-for” that “could jeopardise affordable and reliable energy with likely little reduction in greenhouse gas (GHG) emissions" and that cost-effective regulation is a better approach.
“The undersigned organisations, on behalf of their diverse memberships and representing a substantial cross-section of the US economy as producers, distributors, and users of oil, natural gas, and natural gas liquids, join together to oppose the Methane Emissions Reduction Act due to the adverse environmental and economic impacts it will likely cause and because methane emissions are already being mitigated via appropriate regulatory programs,” the groups wrote.
“To impose a misguided punitive tax on natural gas could significantly undermine any purported effort of this legislation to reduce GHG emissions,” the groups continued.
“In addition to potentially detrimental environmental outcomes, the Methane Emissions Reduction Act could have adverse and disproportionate economic impacts nationwide.
“The potential direct cost of the bill to the economy, not including import fees, could initially be as high as US$14.4 billion (€12.2 billion), increasing 5% above inflation annually. As many as 155 000 jobs could be impacted by the tax, with the largest impacts concentrated in the health care and social assistance industries.”
The group recently sent a letter to the US Senate Committee on Environment and Public Works to voice their concerns.
The organisations, led by API, explain that the proposal is a “pay-for” that “could jeopardise affordable and reliable energy with likely little reduction in greenhouse gas (GHG) emissions" and that cost-effective regulation is a better approach.
“The undersigned organisations, on behalf of their diverse memberships and representing a substantial cross-section of the US economy as producers, distributors, and users of oil, natural gas, and natural gas liquids, join together to oppose the Methane Emissions Reduction Act due to the adverse environmental and economic impacts it will likely cause and because methane emissions are already being mitigated via appropriate regulatory programs,” the groups wrote.
“To impose a misguided punitive tax on natural gas could significantly undermine any purported effort of this legislation to reduce GHG emissions,” the groups continued.
“In addition to potentially detrimental environmental outcomes, the Methane Emissions Reduction Act could have adverse and disproportionate economic impacts nationwide.
“The potential direct cost of the bill to the economy, not including import fees, could initially be as high as US$14.4 billion (€12.2 billion), increasing 5% above inflation annually. As many as 155 000 jobs could be impacted by the tax, with the largest impacts concentrated in the health care and social assistance industries.”
