Obama administration targets wasted revenue in new oil and gas rule

The Obama administration on November 15, 2016 finalized a rule to reduce the massive amount of leaking methane from oil and gas operations on public land, prompting an immediate response from Republicans who intend on reversing it.

The new Methane and Waste Prevention Rule will decrease flaring — burning off methane at the site of extraction — by half. It will also increase inspection and reporting requirements, restrict venting from storage tanks, and clarify when royalties are due on lost gas.

“This rule to prevent waste of our nation’s natural gas supplies is good government, plain and simple,” Dept. of Interior Sec. Sally Jewell said in a statement. “We are proving that we can cut harmful methane emissions that contribute to climate change, while putting in place standards that make good economic sense for the nation.”

States, tribes, and federal taxpayers lose millions of dollars each year through wasted gas, according to a 2010 government report. The amount of natural gas lost between 2009 and 2015 would have been enough to serve more than 6 million households for a year.

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