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Methane tax still part of Biden’s plan

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Methane tax still part of Biden’s plan

‘Every staple of modern life’ will cost more, energy insider says

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The 1,600-page draft of President Joe Biden’s latest social and climate spending plan released Thursday includes a revised version of a methane tax opposed by the oil and gas industry.

Although intended to be more palatable, the tax is only slightly modified from the measure that drew staunch opposition from Democrat lawmakers from oil producing states.

Instead of an immediate $1,500-per-metric ton penalty for methane emissions above a certain threshold, the new measure phases in the tax – $900 per metric ton in 2023, phasing into the $1,500 penalty by 2025.

Brook Simmons, president of the trade group Petroleum Alliance of Oklahoma, was among those who spoke out Friday.

“Oklahoma consumers have long enjoyed some of the lowest energy costs in the nation thanks to our proximity to oil and natural gas production, refining, natural gas-powered electricity generation and energy transportation infrastructure. The methane tax proposed in the updated climate and social spending bill threatens that paradigm,” he said in a written statement.

“Extremist office holders now in positions of power have long opposed the U.S. oil and natural gas industry even though consumer demand for petroleum products continues to rise.

“Their solution is to tax and regulate the domestic oil and natural gas industry into extinction, offshore the production of reliable energy sources to other nations, and drive up consumer costs for food, fuel, electricity, home heating, and every staple of modern life.

“This new tax would fall on the U.S. oil and natural gas industry simultaneously with what we expect to be the most stringent methane emissions regulations on the planet.”

Simmons is referring to a recent announcement that the U.S. will participate in a voluntary Global Methane Pledge to cut methane emissions 30% by 2030.

“The world’s biggest emitters are China and India. Our OPEC+ rivals competing to end the U.S. oil and natural gas industry face neither of these tax or regulatory burdens,” Simmons said.

“The U.S. is the global leader in both oil and natural gas production and in global greenhouse gas emissions reductions. Oklahoma is proud to be part of that success.

“It is time for us to leverage our success and bring U.S. manufacturing back home instead of surrendering our economic security, energy security, and national security to others.”

Simmons sat down recently for an in depth interview with the Times and Free Press about what he calls the “fragile recovery” of the oil and gas industry in Oklahoma and particularly in Kingfisher County. Watch for that story next week.