The Trump administration is proposing to relax environmental regulations on thousands of oil and gas wells that produce minimal energy but release large amounts of methane, a powerful greenhouse gas. The Environmental Protection Agency (EPA) is considering a rule that would significantly reduce requirements for inspecting leaks and upgrading equipment at more than 700,000 low-output "stripper wells." These wells, typically older and poorly maintained, account for only 6% of the U.S.’s oil and natural gas production but are responsible for about half of the industry’s methane emissions, according to studies and the EPA’s draft rule. The agency argues that compliance costs would force many of these wells to close, which it calls “unreasonable,” even though shutting them down would only reduce total U.S. oil and gas output by 0.4%.
The proposed changes would also weaken methane controls across the broader oil industry, with the EPA estimating that the rollback could save companies $42 billion by 2050. A memo included with the proposal claims the move would help “unleash” American energy, a phrase often used by former President Donald Trump. However, environmental advocates argue that the deregulation would not significantly boost energy production but would instead worsen climate change by increasing methane pollution. “This is not about energy dominance,” said Darin Schroeder of the Clean Air Task Force, a climate advocacy group. “It’s about padding the pockets of oil and gas operators and saddling society with the costs.”
The proposal reflects the growing influence of a previously under-the-radar segment of the oil industry, which has gained more power under the Trump administration. The EPA’s draft rule states that it is deregulating stripper wells — defined as those producing up to 15 barrels of oil per day — in response to petitions from groups like the Independent Petroleum Association of America (IPAA) and the National Stripper Well Association (NSWA). These groups have long been supported by Jeffery Hildebrand, an oil billionaire and founder of Hilcorp, a company known for acquiring old, poorly maintained wells. Hilcorp’s business was threatened when the Biden administration imposed strict methane rules in 2024, prompting Hildebrand to become one of Trump’s largest donors.
In response, Trump appointed Aaron Szabo, a former Hilcorp lobbyist, to a senior position at the EPA, where he is leading efforts to roll back the methane regulations. Szabo had previously worked on opposing the Biden rules as a representative of the American Exploration and Production Council (AXPC), which has Hilcorp’s CEO on its board. The AXPC and IPAA have also pushed to eliminate an EPA program that tracks “super-emitter” methane leaks, a key part of Biden’s climate agenda. The Trump administration’s proposed rule aims to remove these requirements, despite the significant environmental impact. The changes now being considered were a central part of Biden’s plan to reduce methane emissions from the oil industry by 80%, a step seen as crucial for slowing global warming in the near term.
EPA Proposes Relaxing Methane Regulations for Low-Producing Oil and Gas Wells
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