API Study: New EPA Emissions Rules Will Cut Drilling 52%

If proposed new EPA air emissions regulations go into effect later this year as proposed, the number of wells drilled using hydraulic fracturing will drop by half, according to a study commissioned and just released by the American Petroleum Institute (a copy of the study is embedded below). The Obama administration has given lip service support for shale gas drilling, most notably in Obama’s recent State of the Union speech—but the administration’s actions don’t match their words.

According to the study, the new EPA regulations would result in an 11 percent drop in gas production, and a 37 percent drop in domestic oil production. The federal government will also receive $8.5 billion less in royalty payments from reduced drilling.

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