EPA proposes easing methane rules for more than 700,000 low-producing wells

The US Environmental Protection Agency is proposing to reduce methane leak-inspection and equipment-upgrade requirements for more than 700,000 low-producing oil and gas wells.

The draft rule would largely ease requirements for “stripper wells”, defined as wells producing up to 15 barrels of oil a day. The EPA says existing compliance costs could force the lowest-producing wells to close, although an industry estimate cited in the proposal says those closures would remove 0.4% of US oil and gas production.

Studies cited by ProPublica say stripper wells produce about 6% of US oil and natural gas but account for roughly half the sector’s methane pollution. The wells are generally older and more prone to leaks. The proposal is projected to save companies US$42 billion through 2050.

The draft would also end or weaken a programme requiring companies to respond to major “super-emitter” methane releases. Environmental advocates said the change would do little to increase energy output while increasing climate pollution.

The proposal follows petitions from industry groups including the Independent Petroleum Association of America and the National Stripper Well Association. The methane rules targeted by the draft were introduced under former president Joe Biden’s administration.

The EPA proposal is under review by the White House Office of Management and Budget and has not taken effect. Its final provisions and environmental effects remain uncertain.