EPA, DOE to distribute $850 million for methane reduction at oil and gas wells

The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) have selected multiple projects for negotiation of nearly $850 million in funding aimed at assisting small oil and gas operators, tribes and other stakeholders in reducing, monitoring, measuring and quantifying methane emissions in the oil and gas sector. Since 2023, federal agencies have taken more than 100 actions, including the EPA’s finalization of a rule projected to reduce methane emissions from regulated oil and gas sources by 80% between 2024 and 2038.

The agencies expect these investments will encourage companies to take immediate steps to conserve energy resources for American consumers, make operations more efficient in the global market and decrease methane emissions.

“The public health of our nation depends greatly on our ability to drastically reduce harmful pollution from America’s largest source of industrial methane – the oil and gas sector,” Energy Secretary Jennifer Granholm said. “This historic investment made possible by the Inflation Reduction Act is helping energy communities and deliver long-lasting health and environmental benefits across the country. At the same time, it will support small operators’ ability to replace and upgrade old equipment, reducing emissions from marginal conventional wells, improving their supply chains to meet the growing market expectations for cleaner fuel sources.”

The selected projects mark a critical advance in combating climate change and enhancing air quality. By addressing legacy air pollution and supporting small oil and natural gas operators, these initiatives are designed to lower methane emissions using both established and developmental technologies. The selected participants include a tribal consortium, 11 universities and 20 private companies undertaking projects across the country to implement and evaluate new and existing methane reduction technologies:

Three projects will assist small operators nationwide in significantly cutting methane emissions from low-producing oil and gas operations using commercially available technology.

An additional 31 projects will fast-track the use of early-commercial technology to reduce methane emissions from both new and existing equipment.

Four projects will improve community access to verified emissions data and increase participation in monitoring efforts.

Five projects will advance the detection and measurement of methane emissions from oil and gas operations on a regional scale.

These selections build upon $350 million awarded to states by the EPA and DOE in December 2023. The grants aim to support industry efforts to voluntarily reduce emissions at low-producing wells, monitor methane emissions and undertake environmental restoration at well pads. Collectively, these investments represent a significant milestone in advancing the Methane Emissions Reduction Program.

Photo by Tom Fournier