Oil and Gas: Federal Actions Needed to Address Methane Emissions from Oil and Gas Development
Fast Facts
Methane, a greenhouse gas, is emitted during oil and gas production—either through intentional releases or leaks. It is also a lost source of revenue for the government when emitted from sources on federal lands. Methane emission rules are now being revised.
Some in the oil and gas industry are voluntarily reducing methane emissions, such as by using satellites to detect them, in addition to the EPA-required handheld devices. Well operators may seek EPA approval for detection alternatives, but few have. Some cited onerous burdens for approval.
We recommended that EPA give operators greater flexibility to use alternative technologies and more.
Satellite detection tools can show methane emissions
Highlights
What GAO Found
The Environmental Protection Agency (EPA) and the Department of the Interior's Bureau of Land Management (BLM) each issued regulations to reduce emissions of methane—a potent greenhouse gas—from oil and gas development. However, EPA and BLM encountered administrative and legal challenges in implementing them. For example, in 2016, EPA established national standards for methane emissions, but EPA repealed and curtailed those requirements in 2020. A June 2021 congressional resolution resulted in the reinstatement of the 2016 methane standards. EPA and BLM are in the process of developing proposed rulemakings to reduce methane emissions.
Several industry entities are voluntarily taking actions to reduce methane emissions, such as using aircraft and satellites to detect emissions (see fig.), in addition to the handheld devices required by EPA. However, few operators have applied to EPA for approval to use alternative technologies, which must achieve at least the same reduction in emissions as EPA's required technology. Representatives from some industry entities and stakeholders said they experienced challenges in meeting EPA's requirements, including that site-specific applications are time- and resource-intensive. Without greater flexibility in the process for approving alternative technologies, EPA may hinder the adoption of innovative approaches for detecting and reducing methane emissions.
Technologies Used to Detect Methane Emissions from Oil and Gas Development Include Piloted Aircraft, Satellites, and Ground-Based Sensors
Selected states have regulations to reduce methane emissions from oil and gas development that exceed BLM's requirements. Historically, gas could be emitted into the atmosphere if the operator did not have the ability to capture it, but three states require operators to submit plans for capturing gas when applying for a drilling permit. Two of these states have enforceable targets for capturing gas. BLM does not require operators on federal lands to submit plans, due to legal challenges. In September 2021, BLM officials said that the agency is considering requiring waste minimization plans from operators but does not expect to include gas capture targets in the proposed rule. Without taking steps to require gas capture during production, BLM is potentially forgoing revenue from wasted gas, which contributes to pollution and greenhouse gas emissions.
Why GAO Did This Study
Methane is emitted into the atmosphere during oil and gas production—either through intentional releases or leaks. These emissions also result in the loss of marketable natural gas. BLM oversees oil and gas operations on federal lands, and EPA regulates emissions from these operations.
GAO was asked to review methane emissions from oil and gas development on federal lands. This report (1) describes the steps federal agencies have taken to reduce methane emissions from oil and gas, and implementation challenges; (2) examines actions selected industry entities are taking to reduce methane emissions; and (3) examines how selected states regulate methane emissions and to what extent those efforts could inform federal actions.
GAO reviewed federal regulations and interviewed agency officials, industry representatives, and stakeholders, including environmental groups and academics. GAO analyzed documentation on industry efforts and reviewed academic studies, analyzed seven selected states' current and proposed methane regulations and interviewed officials from these states.
Recommendations
GAO is recommending that (1) EPA provide greater flexibility for operators to use alternative technologies to detect methane emissions; and (2) BLM consider whether to require gas capture plans similar to what states require, including gas capture targets, on federal lands. EPA and Interior concurred with GAO's recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Environmental Protection Agency | The EPA Administrator should provide greater flexibility to operators for using alternative technologies to detect methane emissions. (Recommendation 1) |
EPA generally agreed with this recommendation and, in November 2023, the agency issued a final rule that provided greater flexibility to operators for using alternative technologies to detect methane emissions. Specifically, the final rule provides greater flexibility by allowing the approval and use of alternative detection technologies, in some instances in combination with traditional technologies. For example, operators can reduce the frequency with which they use the required detection methods such as optical gas imaging cameras if they also use alternative detection technologies in combination, such as aerial flyovers. While these actions meet the intent of our recommendation, we urge EPA to pursue additional flexibilities with regards to approving alternative test methods for methane detection technologies that operators could use in lieu of the required detection methods.
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| Bureau of Land Management | The Director of BLM should consider whether to require gas capture plans that are similar to what states require, including gas capture percentage targets, from operators on federal lands. (Recommendation 2) |
Interior concurred with the recommendation. In April 2024, BLM published its Final Waste Prevention, Production Subject to Royalties, and Resource Conservation Rule. The final rule requires operators include a Waste Minimization Plan (WMP) when applying for a permit to drill oil on federal land. The WMP must include a certification that the operator has a valid, executed gas sales contract to sell to a purchaser 100 percent of the produced gas from an oil well prior to drilling. Alternatively, the WMP can include a self-certification that the operator will be able to capture 100 percent of the gas that the oil well produces, and that all non-emergency flaring of gas is subject to royalties. BLM can defer and ultimately disapprove the drilling permit if the WMP or self-certification is not technically or administratively sufficient. These actions meet the intent of our recommendation.
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