Oil and natural gas companies have asked the Environmental Protection Agency to lower its carbon pollution standard by 10 percent, a move that would help the industry offset the $14 billion in cost savings from lower emissions and lower oil and gas drilling costs.
The White House on Monday issued a memo to EPA staff saying the agency should reduce the standard to 10 percent of greenhouse gas emissions by 2025, and it urged EPA staff to make the change now.
It said the goal of the new standard is to “create the conditions for significant reductions in emissions from existing sources of oil and natural-gas production in the near term.”
Apa, the largest U.S. natural gas producer, said in the memo that its $10.2 billion plan would offset $8 billion in carbon reductions from existing oil and chemical facilities, such as the new wellhead in Texas.
The company is also calling for an EPA-mandated carbon standard for oil production from new wells.
The letter came a day after EPA administrator Gina McCarthy announced the agency would take steps to lower carbon pollution, such the end of the rule to cut carbon emissions by 30 percent from 2005 levels by 2025.
The EPA has been facing pressure from oil and other industry groups, including the American Petroleum Institute, which argues the standard is too high and could cause job losses.