Methane is the primary component of natural gas and a potent greenhouse gas — roughly 80 times more warming than carbon dioxide over a 20-year horizon. The U.S. oil and gas sector is among the largest sources of methane emissions, primarily through leaks, venting, and flaring across wells, pipelines, and processing facilities.
EPA has issued rules requiring leak detection and repair (LDAR), limits on routine flaring and venting, and standards for both new and existing sources. The Inflation Reduction Act of 2022 created a Methane Emissions Reduction Program that includes a fee on excess methane emissions from large facilities, alongside grants to help operators reduce leaks.
Industry response is divided: larger operators have generally supported reasonable standards, citing the value of the gas captured and methane's reputational impact; smaller operators argue the rules impose disproportionate compliance costs and could shut in marginal wells.