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article imageCanada fears U.S. repeal of methane rule will hurt competition

By Karen Graham     Feb 3, 2017 in Politics
The Canadian Association of Petroleum Producers (CAPP), reacted to the US House of Representatives' vote on Friday to repeal the Obama Administration's rule that limits methane emissions, saying the repeal will be harmful to the Canadian energy industry.
The U.S. House of Representatives voted to pass a resolution on Friday that would undo a regulation finalized in November 2016 requiring oil and gas companies to reduce methane leaks from operations on federal and tribal lands.
Alex Ferguson, the vice-president of policy for CAPP, is voicing his concerns, pointing out that while Canadian oil and gas producers must work to reduce the costs the industry faces in curbing methane gas emissions, a repeal of the rule in the US means that this will make the Canadian industry less competitive against their American counterparts.
The House proposal has been sent to the U.S. Senate for approval and if it passes there, President Trump is expected to put his signature on the repeal in what many people see as the most significant and underhanded Congressional attack on any administration's policies in American history.
The Obama methane rule is part of the broader North American climate and clean energy strategy formulated between the U.S., Canada, and Mexico last March when we were still good friends with the two neighboring countries.
Inspectors look over equipment a facility that emits methane gas.
Photo by polandeze
Caitlin Workman, a spokeswoman for Canada's Environment Minister Catherine McKenna said in an email on Friday that Prime Minister Trudeau's government is going forward with a plan to publish federal methane regulations for the oil and gas sector early this year, despite the U.S. decision, reports RD News Now.
A proposal by Ottawa would require the oil and gas industry to cut methane emissions in Canada by 40 to 45 percent by 2025. In the U.S., the Environmental Protection Agency (EPA) reports that the natural gas and petroleum industry is the largest source of methane emissions in the country, emitting 33 percent.
Actually, from 1999 through 2014, the U.S. saw a reduction of 6.0 percent in methane emissions from the oil and gas industry as a result of a series of voluntary programs and initiatives. Now a repeal of the rule will end up wasting more than $330 million in lost natural gas resources on public and tribal lands annually, as well as cut direct payments to the public by $800 million over the next 10 years.
More about methane rule, canada petroleum companies, energy industry, Greenhouse Gas, waste of taxpayer's money
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