US readies repeal of methane rules for oil sector

President Donald Trump's administration says it could rescind requirements for oil and gas companies to reduce their emissions of methane, a potent greenhouse gas, by the end of next month.

The US Environmental Protection Agency (EPA) on 29 May submitted its final rule on the methane standards for internal review, according to a court filing today. If the White House Office of Management and Budget approves a request to expedite internal review, the agency anticipates it can finalize the rule by the end of July.

Oil and gas companies have been complying with the methane restrictions since 2016. The rule was the last major climate regulation issued under former president Barack Obama, but it only applied to new and heavily modified facilities. Those facilities were required to install low-emissions equipment, look for methane leaks and make timely repairs.

The Trump administration's efforts to scrap the methane regulations has split the oil and gas sector. Leading industry trade groups have pushed to scrap the methane rules because of concerns about the cost. But Shell, ExxonMobil and other major companies have opposed scrapping the rules. They worry it will damage their image at a time the industry is attempting to show its commitment to addressing climate change. Methane emissions from oil and gas companies account for about 3pc of US greenhouse gas emissions.

The EPA in its repeal proposal argued that the Obama administration's decision to directly regulate methane was unnecessary, since methane was already controlled indirectly through existing rules targeting volatile organic compounds. But critics say that approach would fail to cover some new sources and exempts thousands of existing oil and gas facilities that account for most of the industry's emissions.

By Chris Knight