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EPA to hit oil and gas companies with “methane fee” for drilling waste — but will it last?

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EPA to hit oil and gas companies with "methane fee" for drilling waste — but will it last?


Washington — Oil and natural gas companies for the first time will have to pay a federal fee if they emit dangerous methane above certain levels under a rule being made final by the Biden administration.

The Environmental Protection Agency rule follows through on a directive from Congress included in the 2022 climate law. The new fee is intended to encourage industry to adopt best practices that reduce emissions of methane – the primary component of natural gas – and thereby avoid paying.

Methane is a climate “super pollutant” that is far more potent in the short term than carbon dioxide and is responsible for about one-third of greenhouse gas emissions. The oil and natural gas sector is the largest industrial source of methane emissions in the United States, and advocates say reduction of methane emissions is a crucial way to slow climate change.

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The rule, set to be announced Tuesday at an international climate conference in Azerbaijan, comes hours after President-elect Donald Trump named former New York congressman Lee Zeldin to head the agency in Trump’s second term. If confirmed by the Senate, Zeldin is expected to move to reverse or loosen dozens of environmental regulations approved under President Biden as Trump seeks to establish U.S. “energy dominance″ worldwide.

Trump is likely to target the methane fee amid a flurry of expected actions he has promised to deregulate the oil and gas industry.

As outlined by the EPA, excess methane produced in 2024 could result in a fee of $900 per ton, with fees rising to $1,200 per ton in 2025 and $1,500 per ton by 2026. Industry groups are likely to challenge the rule, including any effort to impose a retroactive fee.

The rule wouldn’t become final until early next year, following publication in the Federal Register.

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EPA Administrator Michael Regan said in a statement that the rule will work in tandem with a new EPA rule on methane emissions imposed this year. The rule targets the U.S. oil and natural gas industry for its role in global warming as Mr. Biden seeks to secure his legacy on fighting climate change.

The fee, formally known as the Waste Emissions Charge, will encourage early deployment of available technologies to reduce methane emissions and other harmful air pollutants, Regan said. The fee “is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air and reinforce U.S. leadership on the global stage,” he said.

Industry groups and Republican-led states have challenged the earlier methane rule in court, but lost a bid for the Supreme Court to block the rule while the case continues before lower-level judges.

Opponents argue that the EPA overstepped its authority and set unattainable standards with the new regulations. The EPA, though, said the rules are squarely within its legal responsibilities and would protect the public.

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Many large oil and gas companies already meet or exceed methane-performance levels set by Congress under the climate law, meaning they are unlikely to be forced to pay the new fee, Regan and other officials said.

Even so, the EPA estimates that the rule will result in cumulative emissions reductions of 1.2 million metric tons of methane (the equivalent of 34 million metric tons of carbon-dioxide) through 2035. That figure is similar to clean-air gains from taking nearly 8 million gas-powered cars off the road for a year, the EPA said. Cumulative climate benefits could total as much $2 billion, the agency said.

Like the earlier methane rule, the new fee faces a near-certain legal challenge from industry groups. The American Petroleum Institute, the oil and gas industry’s largest lobbying group, called a fee proposed earlier this year a “punitive tax increase” that “undermines America’s energy advantage.”

The API said it looks forward to working with Congress to repeal the “misguided new tax on American energy.”

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Environmental groups, for their part, have hailed the impending methane fee, saying oil and gas companies should be held accountable for pollution that contributes to global warming. Oil and gas companies routinely calculate that it’s cheaper to waste methane through flaring and other techniques than to make necessary upgrades to prevent leaks, they said.

The EPA said it expects that over time, fewer oil and gas companies will be charged for excess methane as they reduce emissions in compliance with the rule.



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Bizarre test shows light can actually cast its own shadow

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Bizarre test shows light can actually cast its own shadow


The shadow of a laser beam appears as a horizontal line against the blue background

Abrahao et al. (2024)

Light normally makes other objects cast shadows – but with a little help from a ruby, a beam of laser light can cast a shadow of its own.

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When two laser beams interact, they don’t clash together like lightsabers in Star Wars, says Raphael Abrahao at Brookhaven National Laboratory in New York. In real life, they will simply pass through each other. Abrahao and his colleagues, however, found a way for one laser beam to block another – and make its shadow appear.

The crucial ingredient was a ruby cube. The researchers hit this cube with a beam of green laser light while illuminating it with a blue laser from the side. As the green light passed through the ruby atoms, it changed their properties in a peculiar way that then affected how they reacted to the blue light.

Instead of letting the blue laser pass through them, the atoms affected by the green light now blocked the blue light, which created a shadow shaped exactly like the green laser beam. Remarkably, the researchers could project the blue light on a screen and see this “shadow of a laser” with the naked eye.

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Abrahao says he and his colleagues had a long discussion of whether what they created really qualified as a shadow. Because it moved when they moved the green laser beam, they could see it without any special equipment and they managed to project it onto commonplace objects, like a marker, they ultimately decided in the affirmative.

Historically, understanding shadows has been crucial for understanding what light can do and how we can use it, he says, and this experiment adds an unexpected technique into scientists’ light-manipulation toolbox.

Tomás Chlouba at the University of Erlangen–Nuremberg in Germany says the experiment uses known processes to create a striking visual demonstration of how materials can help control light. The ruby’s interactions with the laser, for instance, are similar to those of materials used in laser eye surgeries, which must be able to respond to laser light by blocking it if it gets dangerously intense.

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You can't put a price on the sense of awe particle physics inspires

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2C6F140 Atoms and their electron clouds , Quantum mechanics and atomic structure



Astronomy and particle physics are no longer seen as vital by the US establishment, so funding has fallen. But our work creates a sense of wonder, and wonder matters, says Chanda Prescod-Weinstein



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WTI rises to trade around $69 per barrel

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WTI rises to trade around $69 per barrel


Trump admin will quickly reduce red tape in energy production, says Skylar Capital's Bill Perkins

Crude oil futures rose slightly on Thursday, with the U.S. benchmark trading around $69 per barrel, though the market outlook remains bearish.

Global crude supplies are expected to outstrip demand by more than 1 million barrels per day next year led by robust growth in the U.S., according to the International Energy Agency’s monthly market report.

Here are today’s energy prices by 8:07 a.m. ET:

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  • West Texas Intermediate December contract: $68.92 per barrel, up 49 cents, or 0.7%. Year to date, U.S. crude oil is down more than 3%.
  • Brent January contract: $72.78 per barrel, up 50 cents, or 0.7%. Year to date, the global benchmark is down more than 5%.
  • RBOB Gasoline December contract:  $1.9711 per gallon, up 0.3%. Year to date, gasoline has fallen nearly 6%.
  • Natural Gas December contract: $2.966 per thousand cubic feet, down 0.6%. Year to date, gas has gained nearly 18%.

UBS slashed its price forecast for global benchmark Brent to $80 per barrel from $87 previously on weakening demand in China, the world’s largest crude importer.

OPEC on Monday cut its demand growth forecast for the fourth month in a row earlier this week.

U.S. crude oil has shed about 4% and Brent is down 3.5% since Donald Trump won the U.S. presidential as the dollar has surged. A stronger U.S. dollar can depress oil demand among buyers that hold other currencies.

Don’t miss these energy insights from CNBC PRO:



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Scientists say they’ve discovered the world’s biggest coral, so huge it was mistaken for a shipwreck

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Scientists say they've discovered the world's biggest coral, so huge it was mistaken for a shipwreck


Scientists say they have found the world’s largest coral near the Pacific’s Solomon Islands, announcing Thursday a major discovery “pulsing with life and color.” The coral is so immense that researchers sailing the crystal waters of the Solomon archipelago initially thought they’d stumbled across a hulking shipwreck.

“Just when we think there is nothing left to discover on planet Earth, we find a massive coral made of nearly one billion little polyps, pulsing with life and color,” marine ecologist Enric Sala said.

The standalone structure, formed from a “complex network” of tiny coral polyps, has likely been growing for 300 years or more, the researchers said.

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largest-coral-reef-solomons-natgeo.jpg
A diver from National Geographic Pristine Seas measures the world’s largest coral colony, in the Solomon Islands.

Manu San Félix/National Geographic Pristine Seas


At about 111 feet wide and 104 feet long, the team said the “mega coral” was three times bigger than the previous record holder — a coral dubbed “Big Momma” in American Samoa. The massive coral is not a coral reef, structures that can be far larger but are comprised of many distinct coral colonies, they explained.

“While Big Momma looked like a huge scoop of ice cream plopped down on the reef, this newly discovered coral is as if the ice cream started to melt, spreading forever along the seafloor,” said lead scientist Molly Timmers.

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It’s longer than a blue whale and thought to be “so colossal” that it could be seen from space.

solomons-coral-natgeo-7pghc8-q.jpg
A diver from National Geographic Pristine Seas measures the world’s largest coral colony, in the Solomon Islands.

ManuSan Félix/National Geographic Pristine Seas


The coral was discovered at the southeastern tip of the Solomon Islands, in an area known as the Three Sisters. It was spotted by a National Geographic team embarking on a scientific expedition in the region.

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Hotter and more acidic oceans have drained the life from corals in many of the region’s tropical waters, a process called bleaching, including Australia’s famed Great Barrier Reef. But this latest discovery offered a small glimmer of hope, the research team said.


Veterans group works to restore coral reefs

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“While the nearby shallow reefs were degraded due to warmer seas, witnessing this large healthy coral oasis in slightly deeper waters is a beacon of hope,” said coral scientist Eric Brown.

The lush rainforests and pristine waters of the Solomon Islands have long been celebrated for their ecological diversity. Wildlife observations made in the area in the 1920s helped prove a key part of Charles Darwin’s theory of evolution.

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“There is so much to learn about the richness of marine life and the ocean ecosystem, but this finding opens doors of knowledge,” said top Solomon Islands official Collin Beck. “More scientific research is needed to better understand our rich biodiversity and our planet.”

solomons-coral-largest.jpg
An aerial view of the world’s largest coral colony, seen right behind the boat, in the Solomon Islands.

Steve Spence/National Geographic Pristine Seas


The discovery was announced as representatives from around the world meet in Baku, Azerbaijan for the COP29 United Nations summit on climate change.

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The Solomon Islands national climate minister, Trevor Manemahaga, told CBS News’ partner network BBC News at the summit that his nation was proud to be the home of the massive, newly discovered coral.

“We want the world to know, that this is a special place, and it needs to be protected,” he told the BBC. “We rely mostly on marine resources for economic survival, so coral is very, very important.”

Small, low-lying island nations such as the Solomons are among the most vulnerable to the increasing effects of climate change and sea-level rise.

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Our lone oil-and-gas stock strikes 2 smart deals — plus, AMD sharpens its AI focus

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Our lone oil-and-gas stock strikes 2 smart deals — plus, AMD sharpens its AI focus


Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.



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How Trump policies may boost, and burden, energy stocks and crude oil

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How Trump policies may boost, and burden, energy stocks and crude oil




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