Trump blocks methane fee, easing burden on Permian Basin producers
Midland, Texas,
March 17, 2025
Originally Posted in NewsWest9 on March 17, 2025.
President Trump recently signed a resolution blocking a methane fee program that was set to take effect this year, a move that Permian Basin leaders say is a major win for local oil and gas producers. The fee, originally part of the Democrats' 2022 climate bill, aimed to charge oil and gas companies for excess methane emissions. The fee structure relied heavily on calculated factors rather than actual emissions, which industry leaders argued would unfairly impact smaller operators. Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association, said the move relieves a financial burden on West Texas producers. "This was going to be something that could be very detrimental, especially to smaller operators out here in the Permian Basin," Robertson said. "With it removed, it lifts a burden from those operators." Robertson emphasized that the fee’s structure would have penalized operators regardless of how effectively they reduced emissions. "It didn’t really matter how efficient you were with operations or how well you reduced emissions," Robertson said. "It was something we really fought against." Robertson credited Congressman August Pfluger for his efforts in pushing to overturn the fee. "And so, everyone out here owes him a lot of thanks and congratulations for getting this across the finish line," Robertson said. "We couldn't have a better representative for this region in particular for the oil and gas industry out here, but really for the region. I think he represents the folks out here incredibly well up in Washington, D.C., and we're really thankful to have him up there." Pfluger recently posted a photo on social media showing President Trump signing the legislation into law. Industry leaders in West Texas say this repeal is a significant victory for energy producers in the region. |