Last Tuesday, the Federal Administration finalized a methane tax targeting large oil and gas producers, aiming to curb emissions of this powerful greenhouse gas. Starting at $900 per metric ton in 2024 and rising to $1,500 by 2026, the tax applies to facilities emitting over 25,000 tons of CO₂ equivalent annually. Announced at the COP29 Climate Change Conference, the tax is part of a larger climate strategy, backed by the 2022 Inflation Reduction Act.
The EPA estimates this rule will reduce methane emissions by 1.2 million metric tons by 2035—equivalent to taking 8 million gasoline-powered cars off the road. However, industry leaders, like Christopher Guith of the U.S. Chamber’s Global Energy Institute, argue that the tax is unnecessary, punitive, and could raise energy costs. Guith stated,
“The Administration’s methane tax will contribute to inflation and punish American energy producers for meeting growing energy demand. The [U.S.] Chamber supports smart, balanced, direct regulation of methane emissions as part of our climate strategy, but taxing energy producers is duplicative and counterproductive given that existing regulations already govern methane emission levels.”
WY We Care: For Wyoming, a leading oil and gas producer, this tax could have significant repercussions. Many Wyoming companies have already invested heavily in emissions reduction technologies. The added financial burden may impact their ability to meet growing demand while staying competitive. Additionally, Wyoming’s energy producers support substantial employment and economic activity across the state. If the tax isn’t repealed, Wyoming businesses could face higher operational costs, potentially affecting jobs and the state’s overall economic stability.
The Wyoming Chamber of Commerce stands with the U.S. Chamber in opposing the methane tax and will closely monitor its impact to ensure it does not harm Wyoming’s energy producers or hinder energy production and innovation across the state.
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