The oil and gas industry is under scrutiny as President Donald Trump’s Environmental Protection Agency (EPA) plans to weaken restrictions on methane emissions. At the heart of this controversy is Jeffery Hildebrand, a billionaire oil magnate and major Trump donor, whose company Hilcorp operates thousands of low-producing stripper wells known for significant methane leaks.
In January, Hildebrand was invited to the White House to discuss a $100 billion investment in Venezuela’s oil industry. His commitment to rebuilding Venezuela’s infrastructure, despite caveats from other industry leaders, highlighted his close ties with the Trump administration. This relationship has significant implications for climate policy, as the EPA, now led by a former Hilcorp lobbyist, is set to unravel stringent methane rules imposed by the Biden administration.
Stripper Wells: The Unseen Climate Culprits
Stripper wells, which produce minimal energy but release vast amounts of methane, are a major source of greenhouse gas emissions. These wells contribute just 6% of the nation’s oil and natural gas but are responsible for roughly half of the sector’s methane emissions. Methane, a potent greenhouse gas, traps 80 times more heat than carbon dioxide, making it a critical factor in climate change.
Andrew Logan of Ceres, a climate advocacy group, emphasizes the importance of addressing stripper wells. “If you could lose 6% of production and cut emissions in half, who wouldn’t make that trade?” he said. The question, however, revolves around who benefits and who bears the environmental costs.
Hilcorp’s Environmental Record
Hilcorp, owned by Jeffery Hildebrand, has a history of significant methane leaks. In San Juan County, New Mexico, investigators from Earthworks discovered that seven out of eight Hilcorp wells they visited were leaking methane. A satellite detected a massive methane plume from one of Hilcorp’s wells, releasing methane at a rate of 199 kilograms per hour—equivalent to 12 times the volume of natural gas the well typically produces.
Despite these findings, Hilcorp spokesperson Nick Piatek asserted that the company is fully compliant with regulations and inspects sites monthly. He also highlighted the company’s efforts to reduce emissions, emphasizing their model of extending the life of existing assets to limit new development.
The Political and Environmental Implications
The Trump administration’s decision to weaken methane restrictions has far-reaching consequences. While it benefits oil companies like Hilcorp, it shifts the environmental burden onto society. Methane leakage is a routine part of oil and gas production, and the EPA often assumes it is happening when calculating emissions. However, studies have shown that actual emissions are nearly three times higher than reported.
Rob Jackson, a researcher at Stanford, underscores the urgency of addressing methane emissions. “Methane is the best lever we have to slow the march of climate change in our lifetime,” he said. Limiting these emissions would bring a swift payoff, as methane breaks down relatively fast compared to carbon dioxide.
The political and environmental landscape is complex, with billionaires like Jeffery Hildebrand playing a pivotal role. As the Trump administration continues to roll back environmental regulations, the impact on climate change and public health remains a critical concern.
