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Permian smog in EPA’s crosshairs -- what will it mean for crude output?

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Listen: Permian smog in EPA’s crosshairs -- what will it mean for crude output?

The oil and gas sector and policymakers in Texas and New Mexico are on high alert over a notice posted to the Environmental Protection Agency's regulatory agenda that they fear could have a crippling impact on domestic oil production.

That notice revealed that the EPA is considering redesignating portions of the Permian Basin as ozone nonattainment areas under the 2015 National Ambient Air Quality Standard. A redesignation could impose new requirements on producers and even cause some facilities to shut down in a region responsible for nearly 40% of US oil production.

Chris Colclasure, an attorney with the law firm Beatty & Wozniak, joined the podcast to shed some light on the notice, its potential impacts to the oil industry and how it might align with the EPA's proposed new methane rules. He also spoke about the potential timeline for action, what companies should be doing now and pushback the EPA may face if it decides to proceed down this path.

Stick around after the interview for Jeff Mower with the Market Minute, a look at near-term oil market drivers.

Related content:

Permian crude volumes surge despite supply chain hindrances: NuStar

EPA review of smog from Permian Basin could snag crude output from New Mexico, Texas (premium content)

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