US proposes to cut methane from oil, gas by nearly half

Associated Press

WASHINGTON

The Obama administration on Tuesday proposed cutting methane emissions from U.S. oil and gas production by nearly half over the next decade, part of on ongoing push by President Barack Obama to curb climate change.

The administration’s target is to cut methane from oil and gas drilling by 40 to 45 percent by 2025, compared with 2012 levels. The move was not unexpected; officials had set the same goal in a preliminary blueprint in January. Still, by moving forward with the official proposal, Obama is adding to a list of energy regulations that have drawn applause from environmentalists and ire from energy advocates.

To help meet the goal, the administration issued a rule cutting emissions from new and modified oil and natural-gas wells, along with updated standards for drilling to reduce leakage from wells on public lands.

The rule would require energy producers to find and repair leaks at oil and gas wells and capture gas that escapes from wells that use a common drilling technique known as hydraulic fracturing, or fracking.

Officials estimate the rule would cost industry from $320 million to $420 million in 2025, with reduced health care costs and other benefits totaling about $460 million to $550 million.