OTC: GL Noble Denton survey shows executives expect stricter US offshore regulations

GL Noble Denton surveyed more than 100 senior oil and gas professionals regarding their comments on new US offshore regulations in the 3 years since the deepwater Macondo well blowout and resulting explosion and fire to the Deepwater Horizon semisubmersible in the Gulf of Mexico.

Survey results were outlined during the Offshore Technology Conference in Houston. Eleven people died on the semi before it eventually sank off Louisiana in April 2010. The incident resulted in a massive oil spill in the gulf. BP PLC operated the Macondo well, which has been permanently sealed. Transocean Ltd. owned the Deepwater Horizon.

Executives working the gulf said they are concerned about rising operating costs as they work in a tougher, post-Macondo regulatory regime. A copy of the survey, “Reinventing Regulation,” can be downloaded from the GL Noble Denton web site.

Of those surveyed, 85% expect the US regulatory regime will get tougher in 2 years, and 61% said the impact of the new regulations on their business had been either “somewhat” or “highly” negative.

Executives listed increased compliance costs and a greater administrative workload as the

two most significant impacts of the new regulations. Yet, many survey participants still consider the US a favorable, stable place for oil and gas operations.

Arthur Stoddart, GL Noble Denton’s executive vice-president for the Americas, said, “It is inevitable that the devastating Macondo oil spill would incur a strong regulatory reaction. No government could fail to act in the wake of such an incident.”

Acknowledging that changes are absolutely necessary to improve safety and prevent future oil spills, Stoddard said industry “will need to adapt to survive in a new climate. Increasing compliance costs, burgeoning legal risks, and a greater administrative workload are just some of the effects.”

Research shows that smaller oil and gas companies operating in the US are most likely to feel the impact of these burdens, he noted.

“Despite these challenges, there are clear opportunities for business growth in the US, and the country remains a leading operating destination for oil and gas companies. Evidence of this is seen in the strong rise in the number of on and offshore drilling permits issued to operators over the past year, suggesting a continued and healthy appetite for investment.”

Contact Paula Dittrick at paulad@ogjonline.com

 

Related Articles

EPA cuts 2013 cellulosic-ethanol mandate

04/28/2014 The US Environmental Protection Agency lowered the amount of cellulosic ethanol required in 2013 to the amount actually produced, relieving refiner...

Four years after Macondo, offshore Arctic beckons, speakers warn

04/28/2014 Lessons learned from the Macondo deepwater well incident and crude oil spill are in danger of being minimized in a push to develop offshore Arctic ...

Full set of tools needed for US Arctic spill response, NRC finds

04/23/2014 A full slate of response tools will be needed to address crude oil spills in the US Arctic, but not all of those tools are readily available, the N...

Compromise on climate

04/21/2014 The third report of the Intergovernmental Panel on Climate Change Fifth Assessment performs a valuable service. It establishes boundaries for compr...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected