The Environmental Protection Agency (EPA) has proposed ending its Greenhouse Gas Reporting Program, which requires large industrial polluters, including many oil and gas companies, to report their annual greenhouse gas emissions. The agency says this move could save the industry up to $256 million a year, but many in the energy sector warn the change could cause more harm than good.
For over a decade, the reporting program has tracked emissions from roughly 8,000 facilities nationwide, with about 2,300 in the oil and gas sector alone. In 2023, these operators reported 322 million metric tons of carbon dioxide equivalent emissions, the same as the pollution from 75 million cars driven for a year. The EPA claims the program hasn’t made a meaningful impact on improving health or the environment. They argue stopping it could allow companies to spend money on more effective environmental efforts.
But industry groups, including the American Petroleum Institute (API) and energy companies like Chevron and Exxon Mobil, disagree. They say ending the program would create uncertainty for producers and complicate vital efforts to meet climate goals. The API, representing almost 600 members, argues that stopping the reporting could jeopardize companies’ ability to claim important tax credits designed to encourage carbon capture projects, which store CO2 underground to prevent it from warming the planet.
These tax credits, such as the 45Q credit for carbon capture and the 45V credit for clean hydrogen made from natural gas with carbon capture, rely on emissions data collected through the program. Without this data, companies might lose access to billions of dollars in investments already made in carbon capture projects. Industry insiders also warn that the proposal could harm U.S. liquefied natural gas (LNG) exports, especially to markets like Europe and Japan, where buyers increasingly demand proof of low-emission energy sources.
States could step in to collect emissions data if the federal program ends, but this could add costs and complications for companies operating in multiple states. The EPA is accepting public comments on the proposal until November 3, but the Treasury Department has so far declined to comment on how the change could affect tax credits.
Critics, including experts from the Carbon Capture Coalition and companies like Elysian Carbon Management, say the economic benefits of maintaining the reporting program far outweigh the costs of reporting. They see it as critical for helping the country reduce emissions and support cleaner energy technologies.
As the EPA weighs its decision, many in the oil and gas industry and beyond are watching closely. The program has been a key part of how the U.S. tracks and manages industrial emissions for years. Shutting it down could have wide-reaching effects on environmental efforts, business operations, and international energy trade.