The US Government has announced plans to provide $700m in federal funding to reduce methane emissions from the country’s oil and gas industries.
The US Environmental Protection Agency (EPA) and the US Department of Energy revealed the Methane Emissions Reduction Program (MERP) in a joint announcement.
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Drawn from the Inflation Reduction Act, each eligible state in the US will receive as much as $350m of funding from the total MERP funding pool of $1.55bn.
The $350m will be used by states to help oil and gas companies identify and subsequently reduce methane emissions in their operations voluntarily.
In April, a study found that methane emissions from oil and gas companies in the US were 70% higher than EPA estimates.
“The amount of methane emitted from oil and gas operations is enough to fuel millions of homes a year and is a major driver of the climate crisis,” said Joe Goffman, Principal Deputy Assistant Administrator for EPA’s Office of Air and Radiation.
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By GlobalData“These programs will help minimise that waste, a benefit for nearby communities and businesses alike,” he added.
The US Government claims that the funding will help small and medium-sized producers as the funding and voluntary identification is centred specifically on low-producing conventional wells.
Companies can use the funding to invest in monitoring technologies for these wells to better identify and mitigate future emissions.
Brad Crabtree, Assistant Secretary of the US Office of Fossil Energy and Carbon Management, stated: “These programs will help states and industry to accelerate methane monitoring and mitigation efforts, which will increase efficiency and reduce costs for oil and gas producers, while providing long-lasting climate and health benefits to communities across the nation.
“Methane’s potency as a greenhouse gas makes targeted emissions reduction efforts essential to slow the rapid rate of climate change,” he added.
A portion of the funding for each state could also be used to support environmental restoration initiatives.
