Regulators in the US state of New Mexico have proposed a new methane emissions target that would require oil and gas producers capture 98% of their emissions by 2026.

"The draft rules lay out an achievable but ambitious timeline and leaves room for innovation in the oil and gas industry, incorporating key feedback received throughout the process," the state's Oil Conservation Division (OCD) director Adrienne Sandoval said in a statement earlier this week.

"Together we can craft a nation-leading methane reduction model."