According to recent news, there is a good chance that the Obama administration will be placing tighter restrictions when it comes to the offshore drilling equipment they are using. At first, this might seem like a needless expense, as many of the pieces of equipment used today are adequate. However, some companies are using outdated or worn pieces of technology and equipment. They may need to have better quality, newer equipment. Much of the equipment in use is actually the best way to defend against potential disasters.
What about the costs? One of the first questions that companies in the industry naturally have when they hear about this type of news is just how much it is going to cost them. While it is not cheap, the estimates are that it would cost an added $88 million to the industry costs annually, on average, over the course of the next decade. The largest of the costs would be the first year, 2015, which they estimate to be $165 million. Right now, many in the industry are reviewing the proposed rules and they will have 60 days from April 15 to comment on them. Nothing is set in stone quite yet, so there could still be some substantial changes. However, the idea of rules and regulations are not all bad. They do have some merit.
Even though spills and other disasters are extremely rare when you think about the size of the industry, the ones that do occur tend to get quite a bit of news. The new rules should not necessarily be something companies see as a bad thing. Sure, it costs now when you are buying and setting up new equipment. However, it can help in a couple of ways. First, it actually can help to improve the safety and the efficiency of the company. This means that there is less of a chance of an expensive disaster down the line. Second, it shows that the companies are paying attention to what the public – their customers – are demanding.
The industry has already created a set of standards to help prevent blowouts. The new rules are focusing on building upon these rules as much as possible. The rules will set up schedules for repair and maintenance to ensure there is nothing wrong with the device. The new rules are also calling for “real time monitoring onshore for heat and pressure at the well.”
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 Manufacturing, Mud Systems, Rig Walking Systems, Power Generation, Control Systems, Iron Roughneck Services and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.