Trump administration proposes looser oil drilling rules

Investing.com -- The Trump administration on Monday proposed reduced regulations for oil and gas drilling operations on federal lands, including a significant reduction in cleanup costs for abandoned wells.

The Department of the Interior said it would lower the cost of statewide bonds for wells to $25,000 per state from $500,000, a level put in place during the Biden administration.

Bonds cover the costs of plugging abandoned oil and gas wells if an oil and gas company goes out of business. A 2021 analysis by non-profit Resources for the Future estimated it costs about $20,000 to plug a single oil and gas well.

"These targeted updates cut through the red tape that has historically deterred investment, ensuring our public lands remain a reliable engine for economic growth and innovation," Interior Secretary Doug Burgum said in a statement.

The changes align with President Donald Trump's goal to reduce regulations for businesses and make it easier to invest in production of domestic fossil fuels.

Interior's other proposals include shortening public participation in oil and gas permitting to 10 days from 90 days.

The agency also proposed rolling back requirements aimed at curtailing methane emissions from oil and gas operations. The changes would cut compliance costs by nearly $17 million a year, Interior said.

Methane is a greenhouse gas that tends to leak from drill sites and pipelines.

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