The US Supreme Court has rejected a request to pause new methane regulations issued by the Biden administration while ongoing legal challenges work through lower courts. The application was denied without comment on Friday. Read the order here.
A coalition of oil and gas producers, joined by over 20 states, argues in the case, Oklahoma, et al. v. EPA, et al. , that the EPA’s new mandates exceed its legal authority. The regulations, introduced at the end of 2023, require operators to replace outdated equipment to limit accidental methane emissions and mandate increased testing for leaks. The rules also enforce stricter standards for mercury emissions.
Methane, a potent greenhouse gas, is believed to trap heat in the atmosphere at a rate approximately 80 times greater than carbon dioxide and is estimated to be responsible for up to 30% of global warming. Mercury, a neurotoxin, poses significant public health risks.
In addition to stricter environmental standards, the regulations expose energy operators to increased civil action from the private sector, making them more vulnerable to lawsuits.
Investors are watching the court’s approach to the methane suit closely for signals of how the justices may rule on other cases on the docket this term. A similar case before the court involving new EPA rules for carbon emissions could have an even larger impact on the energy industry.
Texas Attorney General Ken Paxton, a leading voice in the legal battle against the EPA, criticized the regulations: “The EPA is once again trying to seize regulatory authority that Congress has not granted,” he said in a March statement. “I am challenging this blatant overreach by the Biden Administration and will continue to defend vital sectors of the Texas economy.”
More stories we’re tracking at Equities:
BP scraps transition strategy
Oil giant BP announced a surprise move today to abandon its targets for reduced fossil fuel production. The company had originally planned to cut oil and gas production by 40% by 2030, a goal set in 2020. This reduction target was scaled back to 25% in 2023. The decision follows new investments in oil and gas facilities in the Gulf of Mexico. BP’s stock has underperformed other major oil producers since adopting its shift toward renewable energy, as investors have increasingly questioned the profitability of the strategy.
Uranium prices rise
Uranium prices reached their highest levels since late August, with near-month contracts trading at $82.50 per pound on the CME Globex platform this morning. Rising demand for nuclear energy to power AI data centers has been a major driver in recent months, and the underlying commodity market is now reacting to increased bullish sentiment in nuclear equities. Despite the surge, global prices remain well below all-time highs reached in 2007.
Case Western receives grant for AI solar research
The US Department of Energy has awarded Case Western Reserve University a $4 million grant to support an AI project aimed at improving the lifecycle of photovoltaic solar energy systems. The project, named ArgoPV, will utilize generative AI to optimize solar hardware performance — from fabrication and electricity production through end-of-service stages.
Read more: Amid Middle East escalations, clean energy stocks decline even as oil surges
