Democrats Likely to Ditch Methane Fee on US Oil and Gas Producers

A Democratic proposal to impose a methane fee on U.S. oil and gas producers is not likely to be included in the party’s massive spending bill in Congress amid opposition within its own ranks, two sources familiar with the negotiations said on Oct. 25.

The proposal to tax oil and gas producers for methane emissions above a certain threshold faces opposition from U.S. Senator Joe Manchin, who represents natural gas-producing West Virginia, along with Democrats from oil-producer Texas, the sources said.

The fee, supported by the White House, is part of a broader effort by Democratic President Joe Biden to curb the greenhouse-gas methane, considered the biggest cause of climate change after CO₂.