Key facts
- The EPA is days away from proposing to rescind a Biden-era policy on methane leaks from oil and gas operations.
- EPA Administrator Lee Zeldin stated the policy change is needed to prevent unnecessary burdens on energy producers.
- The proposed changes would weaken requirements for leak inspections and equipment upgrades at over 700,000 low-producing "stripper wells".
- These stripper wells account for roughly half of the oil and gas sector's methane pollution, despite producing only 6% of the country's oil and gas.
- The EPA acknowledged that the cost of compliance would force the lowest-producing wells to shut down, which it deemed "unreasonable".
- The proposal is expected to save companies $42 billion through 2050 and is framed as a way to "unleash" American energy.
The US Environmental Protection Agency is preparing to propose rescinding a Biden-era policy that aimed to curb methane leaks from oil and gas operations, according to reports.
EPA Administrator Lee Zeldin stated that Americans need affordable energy for heating and transportation, and that the existing regulations place "unnecessary burdens" on energy producers. The proposed changes would significantly weaken requirements for leak inspections and equipment upgrades at over 700,000 low-producing "stripper wells."
These stripper wells, defined as producing up to 15 barrels a day, are often old and prone to leaking. While they account for only 6% of the nation's oil and gas production, studies indicate they are responsible for approximately half of the sector's methane pollution. The EPA acknowledged these figures in a draft rule, but argued that compliance costs would force the closure of the lowest-producing wells, which it deemed "unreasonable" despite an industry estimate suggesting it would only reduce US oil and gas production by 0.4%.
The proposal, which also targets methane controls in the broader oil industry, is projected to save companies $42 billion through 2050 and is described in a memo as a move to "unleash" American energy. Environmental advocates, however, argue that the deregulation will do little to boost energy output while substantially increasing climate pollution, with Darin Schroeder of the Clean Air Task Force stating it is "about padding the pockets of oil and gas operators and saddling society with the costs."
The changes are reportedly influenced by petitions from industry groups like the Independent Petroleum Association of America and the National Stripper Well Association. Jeffery Hildebrand, founder of Hilcorp, a company known for acquiring old stripper wells, became a significant donor to Donald Trump. Following Trump's return to office, Aaron Szabo, a former Hilcorp lobbyist, was appointed to a senior position at the EPA, overseeing the effort to dismantle the methane rules. Szabo had previously advocated against these regulations.