Trump administration moves to relax rules for drilling

The Trump administration has proposed rolling back regulations governing oil and gas drilling operations on federal lands, including a significant reduction in the costs associated with cleaning up abandoned wells.

The Department of the Interior said it would lower state bonding requirements for wells to $25,000 per state, down from the $500,000 level established during the Biden administration.

These bonds are intended to cover the costs of plugging abandoned oil and gas wells if an energy company goes bankrupt. A 2021 analysis by the non-profit organization Resources for the Future estimated that plugging a single oil or gas well costs approximately $20,000.

“These targeted updates remove red tape that has historically discouraged investment, ensuring that our public lands remain a reliable engine of economic growth and innovation,” Interior Secretary Doug Burgum said in a statement.

The proposed changes align with President Donald Trump’s goal of reducing regulations on businesses and encouraging investment in domestic fossil fuel production.

Among other measures, the Department of the Interior proposed shortening the public comment period for oil and gas drilling permits from 90 days to 10 days.

The agency also proposed eliminating requirements aimed at reducing methane emissions from oil and gas operations. According to the Department of the Interior, the changes would reduce compliance costs by nearly $17 million per year.