The Biden administration on Wednesday finalized new rules for drilling for oil and gas on public lands — saying that it will both cut down on wasted fuel and planet-warming emissions from the production of these fossil fuels.
The rules would require oil and gas drillers to either certify that they will capture all of the oil and gas produced by their wells or come up with a plan to reduce wasted gas.
The Interior Department said that this rule will result in $51 million per year in more government revenues and $17.9 million in climate-related benefits to society.
A proposed version of the rule was expected to have climate benefits equivalent to taking nearly 1.6 million gas-powered cars off the road. It’s not immediately clear whether that figure had changed in the final rule.
“By leveraging modern technology and best practices to reduce natural gas waste, we are taking long-overdue steps that will increase accountability for oil and gas operators and benefit energy communities now and for generations to come,” Interior Secretary Deb Haaland said in a written statement.
The rule is expected to save industry $1.8 million per year from lost gas, but cost them $19.3 million per year to comply with.
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