Good morning, here's what the Oilman has for you today:

• Gas Industry Faces Methane Squeeze

• Most of IRA Money Goes to the Red States

• Upcoming Oil and Gas Events

• Tweet of the Day

Gas Industry Faces Methane Squeeze

The federal government has set its sights on methane emissions, seeking reductions of up to 50%.

This means regular tracking, reporting, and maintenance for pipeline operators.

Welcome to Season 45 of “Let’s Squeeze the Life Out of Oil and Gas.”

From business as usual to apocalypse now

For decades, regulators have ignored methane leaks from pipelines.

They were considered the cost of doing business and allowed to continue.

Unless, of course, they were bad enough to pose a fire hazard.

Now, everything’s changed.

Now, methane is Villain #2, right after CO2.

Because methane is an even more potent greenhouse gas than CO2.

It breaks down a lot more quickly, which diminishes its effect, but who cares?

If there’s an opening to hit oil and gas where it hurts, they will.

Make it all more expensive

Hurt it definitely will.

Per the Houston Chronicle:

“For natural gas and pipeline companies, the new rules could prove costly, requiring monthly surveys by airplane or helicopter, infrared equipment capable of detecting otherwise invisible methane leaks and sharp control on how pipeline companies operate their systems.”

Not a single methane molecule must get out, or we’re all going to die from climate change.

Also, every single methane leak must be fixed ASAP, according to the Pipeline and Hazardous Materials Safety Administration.

It was the PHMSA that came up with the new rule.

I guess it just wants to make sure pipeline operators stay busy.

Can’t have them get too much free time.

They might decide to build a new pipeline or two.

Today’s Edition Is Brought To You By ROX Exploration

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Most of IRA Money Goes to the Red States

Most low-carbon energy projects set to benefit from IRA subsidies are going to conservative states.

It turns out these are the states that have the resources necessary for these projects.

And their governments want the jobs.

Red goes green

West Virginia recently approved a $50-million project for a titanium factory plus utility-scale battery production to be powered by solar.

The project is one of three that the coal state has approved in the last year, the WSJ reported this week.

West Virginia, however, is by far not the only one.

It turns out conservative states have more sun, more wind, and more land than liberal states.

That makes them a magnet for investors in low-carbon energy.

It also makes them a magnet for IRA billions.

That titanium/solar/battery project, for example, can get up to 50% off its total investment thanks to the IRA.

It’s the same with other projects, too.

Investors love the IRA because of the subsidies.

They love the red states because of the resources.

Republican governors love the projects because they will create jobs.

Will there really be so many jobs?

The short answer is not really.

The long answer has to do with temporary and long-term employment.

Building a solar or wind farm can employ a large number of people at the construction phase.

But then employment drops sharply because how many people do you really need to keep an eye on a field of solar panels?

Not many, that’s how many.

Sure, those working in factories will get long-term jobs.

Yet, we’ve yet to see just how many factories will actually get built.

They do need to be profitable, after all.

Upcoming Oil & Gas Events

• September 11-14: American School of Gas Measurement Technology, Marriott Houston Westchase, Houston, TX

• September 14: KOGA Fall Meeting, CountryMark Pavillion, MT Vernon, IN

• September 14: PIOGA’s Birds & BBQ Clay shoot, West Penn Sportsmen’s Club, Murrysville, PA

• September 14: Dallas Cowboys Golf Tournament, Cowboys Golf Club, Grapevine, TX

Around the Global Patch

🌍 Europe's auto Titans lag in electric vehicle shift.
🇨🇦 Kingston's acquisition of Alberta pipeline from Rangeland.
🇦🇺 Australia avoids strike action for now.

Tweet of the Day

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