Trump Vows $45 Billion Savings by Scrapping Methane Drill Rules

President Donald Trump announced Tuesday that his administration is officially ending the federal rules designed to limit methane leaks from oil and gas drilling. Speaking at a campaign rally in Lubbock, Texas, the president stated that the action would save companies and consumers $45 billion in costs. He also claimed the decision would unlock 210 million barrels of oil, a volume equivalent to roughly 10 days of domestic petroleum use.

The policy reversal targets a rule finalized in 2024 under former President Joe Biden. That regulation required operators to inspect and repair major methane releases at both new and existing facilities. It also imposed stricter standards on small wells, which produce only 6% of the nation's oil and gas but account for up to half of the industry's total methane emissions. The Biden administration projected the rule would prevent 58 million tons of methane emissions by 2038.

EPA Administrator Lee Zeldin previewed the changes last month. He said the agency would eliminate its Super Emitter Program, which mandated investigations of large leaks. Zeldin argued the previous rule would have cost the industry $18 billion and held back energy production. Under the new approach, the EPA will set less restrictive standards for small oil and gas wells.

Trump framed the decision as a relief for small operators who he said were crushed by the previous regulations. He described the Biden plan as expensive and unnecessary. The move aligns with a wider push by Republicans in Congress to dismantle climate policies enacted during the last administration. Recent actions include revoking a key scientific finding on greenhouse gases and lowering vehicle fuel economy standards.

Environmental groups criticized the rollback. Fred Krupp, president of the Environmental Defense Fund, called the change a free pass for companies that allow polluting gas to escape. He argued that the EPA should be fighting waste rather than making it easier to release. Krupp noted that methane is the main component of natural gas and is far more potent than carbon dioxide in the short term.

The original rule was coordinated with a methane fee approved in the 2022 climate law. That fee program would have levied a waste emissions charge of up to $1,500 per metric ton on producers that exceeded specific limits. It marked the first direct federal tax on greenhouse gas emissions. Congress repealed the fee weeks after Trump took office. The new rules take effect as the administration seeks to boost domestic drilling amid high fuel prices caused by the war in Iran.