Donald Trump's administration intends to lift methane emission limits for US oil and gas companies put in place under Joe Biden. The easing of regulation should leave the industry with about 45 billion dollars, otherwise it would have to spend on compliance with environmental regulations.
The main argument of the White House is the cost of production. Controlling and reducing leaks requires equipment, tests and additional costs. For large manufacturers it is part of the production budget, but for small companies such expenses can be critical, even to the point of bankruptcy. Abandoning the previous rules should reduce costs and support production.
However, the savings come at the price of relaxing commitments to reduce methane emissions. The regulatory choice becomes simple: reduce the operating costs of the oil and gas sector and potentially lower the price of energy, or maintain stricter environmental standards. For now we are talking about the administration's plans, and not about the cancellation that has already come into effect.
Ξeconomy.