Energy Policy: Trump Ends Methane Rules for Oil and Gas

The Trump administration is ending the primary federal rule designed to limit methane emissions from oil and gas production. President Donald Trump announced the termination of the policy during a campaign rally in Lubbock, Texas, on Tuesday. He stated that the decision removes regulations he described as costly and unnecessary for the energy sector. The administration projects the change will save consumers and producers $45 billion in total costs.

Trump said the new approach will unlock 210 million barrels of oil. That volume is equivalent to approximately 10 days of domestic petroleum consumption. The White House argues that removing these barriers encourages more domestic drilling. This strategy aims to address high fuel prices that have drawn criticism during the ongoing conflict with Iran. The president framed the action as a direct reversal of policies established during the previous administration.

EPA Administrator Lee Zeldin previewed the changes last month. He indicated that the agency would eliminate its Super Emitter Program. That program required companies to investigate and repair major methane leaks from oil and natural gas facilities. The agency will also set less restrictive standards for small oil and gas wells. Zeldin stated that the original rule would have cost $18 billion and held back the U.S. energy industry.

The Biden-era rule was finalized in 2024. It extended regulations to existing wells, not just new ones. Operators were required to plug leaking methane from smaller wells. These smaller wells produce only 6% of the nation's oil and gas. However, they account for up to half of all methane emissions from oil and gas fields. The rule was originally announced in 2023 at a United Nations climate conference in the United Arab Emirates.

Federal officials estimated the rule would prevent 58 million tons of methane emissions by 2038. Methane is responsible for about a third of planet-warming greenhouse gas emissions, according to scientists. It is far more potent to the atmosphere than carbon dioxide in the short term. The rule was projected to yield $98 billion in benefits by 2034. Those benefits were calculated based on the social costs of greenhouse gas emissions on public health and the environment.

Environmental groups have criticized the rollback. Fred Krupp, president of the Environmental Defense Fund, said the move gives companies a free pass. He argued that this comes at the expense of American consumers. Krupp stated that the EPA should fight waste rather than make it easier. He noted that the leaked gas could be captured to provide energy to millions of households.

The rule was designed to work alongside a methane fee approved in the 2022 climate law. That fee would have charged energy producers up to $1,500 per metric ton of excess methane. It marked the first time the U.S. government directly imposed a fee on greenhouse gas emissions. Congress repealed the fee weeks after Trump took office. The EPA had previously imposed an 18-month delay to give companies time to meet inspection requirements.

The administration’s action is part of a wider effort to dismantle climate policies from the Biden era. Previous moves included revoking a central scientific finding on greenhouse gas emissions. The administration has also lowered fuel economy standards for vehicles. It moved to repeal emission restrictions for coal and natural gas power plants. Trump said the new action officially terminates regulations that crushed small operators.