Over the course of the next few months, the Obama administration plans to release a variety of different rules and regulations pertaining to natural gas and oil. These regulations are a direct response to the recent boom in energy the country is experiencing. The hope is to provide rules that will help control the output in a safe and environmentally sound way while not diminishing the capability that companies have when it comes to extracting the gas and oil from the ground.
The rules will address methane emissions, and will require stricter control for hydraulic fracturing. They will also likely include regulations on drilling in the Arctic, an area that many companies today consider ripe for the picking. Additionally, they will have rules come into play regarding how companies are able to ship oil, and will increase the standards for the technology in use for offshore drilling. It’s quite easy to see that the real crux of these regulations is the environment.
Many are wondering just what this really means for the gas and oil industry though. How will these regulations affect them? One of the biggest issues is that it could create higher operating costs. Couple this with the lowered price of gas today, and that could actually mean that fewer companies choose to expand. They may actually contract instead and it could cause lost jobs in the field.
These new regulations are coming in at the end of Obama’s term. He has only two years left in office, so some feel that the addition of these regulations now is a way to improve his green legacy. There may be some merit to this belief, as during the previous six years, there were only a handful of regulations to come through the administration.
However, others feel that this is less about wanting to be seen as a green leader and more about the changes that the industry has undergone over the past couple of years. There is no denying that the oil and gas industry in the United States has expanded quickly recently, and the addition of all of the companies working in the field could be taking a large toll on the environment.
Regardless of the reason, it is clear that these regulations will be coming into play in the months ahead. It is important for companies to learn about and understand these regulations and make adjustments as needed.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Rig Walking Systems, Rig Power Generation, Control Systems, Iron Roughneck Service and Repairs and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.