Oil and gas executives are finding a lot to like in the Senate climate and energy bill, though they are still opposed to some provisions, reports Energy Wire.
The “Inflation Reduction Act,” negotiated by Democratic Sens. Chuck Schumer of New York and Joe Manchin of West Virginia, is aimed at cutting U.S. greenhouse gas emissions by promoting cleaner forms of energy.
At Manchin’s urging, though, it would require the government to offer oil and gas leases on federal land and in the Gulf of Mexico, albeit at a higher royalty rate. It also provides tax incentives for projects that capture carbon dioxide and new forms of energy like hydrogen.
The downside for the oil industry is a required minimum tax rate and a new fee on emissions of methane, a potent climate-warming gas that’s a major source of pollution in the oilfield. Read the entire story.