Trump announces methane-rule rollback, easing the cost outlook for oil and gas producers

President Donald Trump announced the end of a Biden-era methane rule affecting oil and gas producers. Methane is the main component of natural gas and a greenhouse gas.^[1]

Trump said the rollback would save consumers and energy producers $45 billion and unlock 210 million barrels of oil.^[1] The report does not specify an effective date or the period covered by those estimates.^[1]

If the rollback takes effect, producers could spend less meeting the methane requirements, improving profit per unit of oil and gas and making some less-profitable production more economical.^[1] Any resulting supply increase would also depend on energy prices and companies' willingness to invest; the reported estimates do not establish how much earnings or consumers' energy bills would change.^[1]

Impact

• Oil and gas productionOpportunity

  Producers covered by the rule could reduce compliance spending and reassess less-profitable production projects. The potential benefit depends on how the rollback is implemented and how much compliance spending each company would otherwise face.^[1]