The Trump administration said on Thursday it would replace a Biden-era rule that required some oil and gas companies to set aside billions of dollars in extra funds for decommissioning oil platforms if they go out of business.
The new rule will save the industry $484 million a year in compliance costs, the US Interior Department said in a statement, a move aligned with US President Donald Trump's efforts to loosen regulations on industry.
The Biden administration's 2024 rule required oil and gas companies to provide $6.9 billion in new bonds or other financial assurances to protect taxpayers from cleanup costs in the event of bankruptcy.
Trump's Interior Department said the costs fell on small businesses and changes would free up funds for investment and job growth.
The proposal will be published in the Federal Register and be available for public comment for 60 days.
A 2024 Government Accountability Office report found the government was exposed to billions in financial risks if offshore oil and gas companies failed to meet their decommissioning obligations.
(Reporting by Nichola Groom; editing by Diane Craft)
