US proposes to loosen bonding requirements for offshore oil, gas companies

Reuters

Thu, March 5, 2026 at 4:21 PM EST 1 min read

March 5 (Reuters) - 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 ⁠U.S. Interior Department said in a statement, a move aligned with ⁠U.S. President Donald Trump's efforts to loosen regulations on industry.

Here are more details:

* The Biden ​administration's 2024 ​rule required oil ​and gascompanies to provide $6.9 ‌billion in new bonds or otherfinancial assurances to protect taxpayers from cleanup costs inthe event of bankruptcy. * Trump's Interior Department said the costs fell on smallbusinesses and changes would ‌free up funds for ​investment andjob growth. * The proposal ​will be ​published in the Federal Register andbe ‌available for public comment for ​60 days. * ​A 2024 Government Accountability Office report found thegovernment was exposed to billions in ​financial risks ‌ifoffshore oil and gas companies failed to ​meet theirdecommissioning obligations.

(Reporting by Nichola Groom; ​editing by Diane Craft)