Texas gas producers face uncertain future

HOUSTON – The Houston Chronicle reports that Texas natural gas producers face an uncertain future under new regulations announced by the Biden administration Thursday that would force power companies to rein in greenhouse gas emissions. Under finalized rules from the Environmental Protection Agency, coal and new natural gas plants would be required to control 90% of their greenhouse gas emissions through the installation of carbon capture and storage systems by 2032, potentially forcing a shift away from fossil fuels in the power sector. Existing natural gas plants would be governed under separate rules, currently under study at EPA. The rules would make a large share of future natural gas demand dependent on a carbon capture technology that remains expensive and not yet proven at scale.

EPA Administrator Michael Regan said he was confident carbon capture technology, which is supported by new lucrative federal tax credits, would be ready, describing the regulations as “ensuring that power companies can make smart investments and continue to deliver reliable electricity for all Americans.” “We have engaged extensively with the industry, and representatives from multiple power companies indicated (carbon capture) is a viable technology for the power sector today,” he said. The rule faces formidable legal challenges, with Republican state attorneys general, including Texas’ Ken Paxton, already lining up to file suit. West Virginia Attorney General Patrick Morrisey said in a statement Thursday the EPA was aiming to, “strip the states of important discretion while using technologies that don’t work in the real world.”