Texas gas producers face uncertain future under new EPA power rules

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The Biden administration has announced new regulations that would require power companies to rein in greenhouse gas emissions, posing challenges for Texas natural gas producers. Under the finalized rules from the Environmental Protection Agency, coal and new natural gas plants would need to control 90% of their greenhouse gas emissions through carbon capture and storage systems by 2032, potentially leading to a shift away from fossil fuels in the power sector. However, the push for carbon capture technology, which remains expensive and unproven at scale, could create uncertainties for the industry.

While the regulations aim to address climate concerns and ensure reliable electricity for Americans, they face legal challenges from Republican state attorneys general, including Texas' Ken Paxton. Concerns have been raised by industry groups and oil companies about the readiness and costs of implementing carbon capture technology, which could impact natural gas plants and drive power companies towards alternative, cheaper energy sources like wind and solar. The rules have been revised from the initial draft, with exemptions for existing natural gas plants and stricter requirements for new plants, stirring mixed reactions from environmentalists and industry stakeholders.