LUBBOCK, TX – President Donald Trump announced in Lubbock Tuesday night that EPA is proposing major changes to federal oil and natural gas methane regulations, with the administration arguing the revisions could lower energy costs and increase domestic production.
The proposal would reconsider portions of 2024 Clean Air Act rules covering oil and natural gas operations. EPA estimates the changes could save consumers and businesses $45 billion in compliance costs.
The agency also projects the revisions could support production of an additional 210 million barrels of oil and about 1.41 trillion cubic feet of natural gas. Small and marginal wells are among the operations affected.
For agriculture, increased domestic energy production could influence diesel, fertilizer, transportation and other input costs. Any producer-level savings would depend on market conditions and how quickly additional supply reaches the market.
The proposal will move through the federal rulemaking process, including public comment and a hearing, before EPA can issue a final rule.
Farm-Level Takeaway: EPA’s methane proposal could affect farm energy and transportation costs if regulatory changes lead to additional domestic oil and natural gas production.