Enverus: New EPA Quad O Regulation Will Kill Small Producers of Marginal Wells

A new report published by energy big data consultancy Enverus this week finds that EPA’s revised Quad O regulation will raise costs on 34% of US oil and gas wells by as much as an average $10 per barrel of oil equivalent, a cost increase that will force the plugging and abandonment of thousands of domestic wells.

Most such wells are operated by the “moms and pops,” the small producers operating on the margins who have forever been the backbone of the domestic oil and gas industry.

For those unfamiliar with the industry jargon, here is a good synopsis of what the term Quad O means:

What does Quad O stand for?

“Quad O” is an abbreviation for EPA 40 Code of Federal Regulations, Part 60, Subpart OOOO. The EPA has developed new emissions standards defining what processes and equipment are affected, and by when. Emissions of volatile organic compounds (VOC's) contribute to the formation of ground-level ozone, or smog.

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