Critics warn of climate danger as president in Texas claims change will save companies and consumers billions
Donald Trump announced his administration is “terminating” Biden-era regulations holding oil and gas companies accountable for large leaks of planet-warming methane during a rally in Lubbock, Texas, on Tuesday evening.
Trump said during a campaign rally in Texas that the change would save consumers and energy producers $45bn and unlock 210 million barrels of oil – equivalent to about 10 days of US petroleum consumption. “Tonight, I’m officially terminating Biden’s expensive and unnecessary methane regulations to save consumers and energy producers,” Trump said, lifting what he called “crippling regulations on methane that caused prices to skyrocket” for small oil and gas operators.
The move aims to encourage more domestic drilling as Trump faces criticism over high fuel prices stemming from the US war in Iran.
This is a very big deal. Industry largely pushed to accept this regulation. Natural gas is already worse than coal for emissions when exported accross an ocean, even when methane leakage is accepted as minimized (pipe connections are tested/replaced instead of presumed to be 0 leakage).
Natural gas prices are low despite datacenter demand, and extreme disruption of global supply, and high US export capacity utilization, because maximum drilling for oil produces a lot of “free” natural gas. Regulations in question force to capture that natural gas and use it for something. Natural gas prices would skyrocket if rules removed, increasing Americans/global heating/electricity costs significantly, and at $100/bbl oil, more oil drilling incentives are not needed.
This is more of “Global collapse is making our oil companies $100s of Bs” mission accomplished speech, but adding that more wealth needs to be transferred to them.