Interior Department pushes key measure for oil and gas producers

The Trump administration announced a series of measures to update and improve oil and gas drilling processes in the western part of the country. As they explained, the proposed changes could generate $1.8 billion in savings for the energy industry.

The changes relate to what are known as production commingling applications. These are requests made by oil or gas companies to be able to combine or commingle production from multiple wells, leases, or geological zones in a single system. In other words, the ability for a company to be able to extract oil from two different wells and blend them before selling them.

While previous regulations from the Bureau of Land Management (BLM) limited this practice, the new White House proposals seek to relax requirements to reduce the regulatory burden for companies, clarify rules for participants, and therefore impose stricter metering systems.

"This is about common sense and catching up with today’s technology," celebrated Interior Secretary Doug Burgum on his X account. He described the initiatives as a triple win that will benefit the energy industry, the environment, and American taxpayers.

"These updates will help us manage public resources more efficiently, support responsible energy production, and make sure taxpayers and tribes get every dollar they’re owed," he added.

"The change would allow oil and gas operators to more accurately track production and calculate the royalties drillers pay to the federal government and to tribes for fossil fuels produced on public and tribal lands," the Interior Department stated. 

For the Western Energy Alliance, an organization representing more than 200 oil and gas producers across the country, had been calling for years for greater access to the blending process, arguing that it is one of the fastest ways to increase production.