EPA proposes to roll back methane rules for low-output oil and gas wells

The Environmental Protection Agency has prepared a draft rule that would dramatically reduce leak-inspection and equipment-upgrade mandates for over 700,000 low-output “stripper” wells, which together produce only 6% of the United States’ oil and natural gas but emit about half of the sector’s methane, a potent greenhouse gas. The agency claims that complying with current standards would be “unreasonable” for these wells, potentially shutting them down despite an estimated impact of just 0.4% on total U.S. oil and gas output.

The proposal, reviewed by the White House, is expected to cut industry costs by $42 billion by 2050 and aligns with a memo urging the “unleashing” of American energy. Environmental groups argue the move will not boost energy production but will raise climate risks and benefit oil-gas operators financially. The rule follows lobbying by the Independent Petroleum Association of America, the National Stripper Well Association, and Hilcorp founder Jeffery Hildebrand, with former Hilcorp lobbyist Aaron Szabo now overseeing the EPA effort. The rollback also seeks to eliminate a program that tracks large methane “super-emitter” events, a key element of the previous Biden administration’s climate agenda.