On June 22, the US Department of the Interior (DOI) announced relaxed oil and gas extraction regulations, aimed at expanding America's "energy dominance." Under the new rules, the bond fee for oil drilling contracts is reduced by 95% to USD 25,000. Previously, under former President Joe Biden's administration, this bond was intended to cover environmental cleanup and restoration, ensuring that post-extraction well cleanup costs did not impact taxpayers.

Additionally, the administration of President Donald Trump also shortened the public consultation period for projects from 90 days to 10 days.

Oil pump jack and drilling rig south of Midland, Texas, US, 11/6/2025. *Photo: Reuters*

The new regulations also eliminated waste mitigation plan requirements, redefined emergency situations, and measurement standards for permissible venting and flaring activities. Under previous rules, oil and gas operations were required to reduce methane (CH4) emissions, a pollutant approximately 30 times more potent than CO2 in terms of emission factor. Methane is frequently released during oil drilling, exacerbating the climate impact of fossil fuels.

Although not explicitly defining the duration and criteria for permissible emissions, Interior Secretary Doug Burgum stated that easing regulations helps eliminate cumbersome procedures that hinder investment. "This ensures our public lands remain a reliable engine for economic growth and innovation," Burgum said.

The US Department of the Interior believes that reducing administrative burdens will increase transparency and is expected to save businesses nearly USD 17 million in annual compliance costs.

According to The Hill, environmental organizations criticized the Trump administration's move. Aaron Kindle, policy director at the National Wildlife Federation, stressed that businesses profiting from natural resource use must be responsible for rectifying any damages.

"We need bond fees that ensure oil and gas companies pay for post-extraction cleanup, not taxpayers," Kindle stated. Environmental restoration will help sustain wildlife and clean water for future generations.