The U.S. and Canada have agreed to cut methane emissions from oil and gas operations in an effort to curb climate change, but industry groups say the proposed regulations will likely drive up energy prices.

President Barack Obama and Canadian Prime Minister Justin Trudeau announced Thursday that the two nations will work to reduce methane emissions by 40 to 45 percent below 2012 levels by 2025, the Los Angeles Times reported. Methane is a potent greenhouse gas, trapping more heat in the atmosphere than carbon dioxide. http://lat.ms/1pcYvix

The American Petroleum Institute attacked the proposal in a statement issued the same day. The group said the natural gas pumped from shale formations have reduced energy costs for American consumers by $1,200 a year in utility bills. Most natural gas is methane.

"Additional regulations on methane by the (Obama) administration could discourage the shale energy revolution that has helped America lead the world in reducing emissions while significantly lowering the costs of energy to consumers," API Vice President of Regulatory and Economic Policy Kyle Isakower said. "The administration is catering to environmental extremists at the expense of American consumers."

The Independent Petroleum Association of America piled on, calling the proposed cuts costly and unnecessary.

"This new, aggressive proposal threatens about 20 percent of America's oil production and 13 percent of its natural gas production from America's smallest oil and natural gas wells," IPAA Executive Vice President Lee Fuller said. "These ‘marginal wells' are already barely economic, producing small volumes a day. Added costs can shut down these wells."

The Western Energy Alliance said oil and gas companies have already voluntarily reduced methane emissions by 27 percent. The group said that contrary to statements by the Environmental Protection Agency and environmentalists, its industry is not the largest human source of methane emissions. Landfills and cows produce more methane, according to data provided by the alliance.

"Our industry has delivered 59 percent more climate change benefits, through increased natural gas electricity generation, than wind and solar combined," said Kathleen Sgamma, vice president of government and public affairs. "The small amount of methane emissions from the upstream oil and natural gas sector is just 1.07 percent of U.S. greenhouse gas emissions, yet the administration continues to blindly pile on regulation after regulation without even letting the emissions reductions it has already imposed take effect."

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