The API said it expected it would take at least two years before the industry can implement the equipment needed to control emissions tied to energy production, including hydraulic fracturing of shale gas deposits.
"The proposal took too much of a one-size-fits-all approach to regulating an industry that varies greatly in the type, size and complexity of operations," Howard Feldman, director of regulatory affairs for the API, said in a statement. "The proposed rule would require more emission equipment for sources that emit little to no regulated pollutants and should not be subject to these requirements."
The U.S. Environmental Protection Agency is working on new pollution standards aimed at decreasing the amount of volatile organic compounds released into the air. The proposals are expected to be announced next week.
API had claimed the proposal would mean the federal government would be out an estimated $10.8 billion in taxes and royalties from drilling and production.
2014: NFL Cheerleaders [PHOTOS]
EIA: Russia diversifying energy production