US plans to reduce costs for energy drilling on federal land

On Monday, the Trump administration proposed looser regulations?for oil-and-gas drilling operations on federal lands. This included a drastic cut in?cleanup costs for abandoned wells.

The'moves' are aligned with the goal of President Donald Trump to reduce regulation for businesses and to make it easier to increase investment in domestic fossil fuel production.

In a press release, Interior Secretary Doug Burgum stated that "These targeted updates have cut through the'red tape' that has historically discouraged investment and ensured our public lands remain a reliable source of economic growth and innovative ideas."

The Department of the Interior announced that it would lower the cost of state bonds for 'wells' to $25,000 from $500,000 per'state, a level introduced during the Biden years.

If an oil or gas company fails, bonds cover the cost of plugging abandoned wells. According to a non-profit organization called 'Resources for the Future 2021, it costs around $20,000 per 'oil and gas well.

Interior's proposals also include reducing the 90-day public participation period for oil and gas permits to 10 days.

The agency also proposes to rollback requirements that are aimed at reducing methane emissions. Interior said the changes would reduce compliance costs by $17 million a year.

Methane, a powerful greenhouse gas, tends to leak out of drill sites and from pipelines. (Reporting and editing by Cynthia Osterman; Nichola Groom)

(source: Reuters)