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Think energy is unaffordable now? Wait until 2029 | Opinion

The energy statistics in the U.S. have not changed: Pennsylvania remains the second-largest producer of natural gas in the country. If the Appalachia Basin region (Pennsylvania, Ohio and West Virginia) was its own country, it would be the fourth-largest producer in the world. From century-old “conventional” wells to far-larger Marcellus and Utica “unconventional” shale wells, these resources have supported grid reliability, driven industrial competitiveness, and supplied relatively affordable and reliable energy to millions of Pennsylvanians.

That could change drastically for tens of thousands of families in 2029 if the Department of Environmental Protection (DEP) implements a federal methane reduction rule known as Subpart OOOOc in a rigid manner.

Subpart OOOOc, adopted by the Biden-era U.S. Environmental Protection Agency (EPA), is scheduled to be enforced through Pennsylvania’s “State Implementation Plan” under the Clean Air Act beginning in 2029. The rule imposes sweeping new monitoring, reporting and equipment mandates across only the oil and gas sector to reduce methane emissions, but it does so by treating low-production conventional wells in largely the same way as high-volume shale facilities, despite vast differences in production levels, emissions profiles, operating margins and infrastructure.

Pennsylvania has roughly 100,000 conventional wells, many producing only a few barrels of oil or natural gas equivalent per day. Individually, these wells are small in total volume of energy produced. Taken collectively, however, they play a vital role in energy system reliability, particularly in rural areas, by feeding gathering systems largely cut off from interstate pipelines and providing a steady supply of energy during periods of peak demand that helps stabilize prices for consumers.

These wells also account for a very small share of national greenhouse gas emissions — under 1% by most estimates. Nevertheless, under the Subpart OOOOc requirements, conventional operators will face new regulatory burdens that are completely unaligned with emissions values, production levels and economic reality.

EPA estimates that the monitoring and compliance obligations under Subpart OOOOc can cost thousands of dollars per site annually, regardless of output, resulting in the potential that operators of small, conventional wells will be forced to comply at a financial loss or shut in production. This could in turn force wells to close prematurely, weakening Pennsylvania’s energy infrastructure and driving up energy costs.

Pennsylvania’s oil and natural gas sector has already delivered substantial emissions reductions, particularly with the huge transition from the use of coal for electricity generation. That progress was achieved through pragmatic and coordinated federal and state policies that paired strong standards with economic viability and lower energy costs. DEP’s approach to Subpart OOOOc would do the exact opposite of those common sense approaches.

Importantly, the federal rule includes provisions allowing states to tailor regulatory requirements for economically disadvantaged facilities. States can conduct economic analyses to permit facilities to use already existing and effective methane monitoring and capture techniques, rather than follow the costly mandates of Subpart OOOOc.

The Shapiro administration has so far refused to consider “right-sizing” Subpart OOOOc into more effective and manageable requirements for Pennsylvania’s industry and its citizens. Without question, this refusal will lead to environmental and economic hardships well beyond reducing a tiny amount of methane emissions.

This is an argument for smarter energy policy, not skirting reasonable regulations or accountability. Pennsylvania has balanced energy production and environmental protection before. Treating oil and natural gas as liabilities rather than assets risks higher costs and greater price volatility. Without action by the Governor and DEP to soften Subpart OOOOc’s impact, energy will become less reliable and less affordable for Pennsylvanians.

Daniel J. Weaver is the president and executive director of the Pennsylvania Independent Oil & Gas Association.

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