As the government regulatory impact of oil and Gas drilling sector?


Sectors of oil and gas drilling are considered an important part of the U.S. economy, in both long and short term. In recent decades, however, they were subjected to scrutiny on the basis of such environmental problems as air and water, offshore regulation and use of chemicals. This occurred in combination with other measures encouragement of alternative sources of energy in creation and production of shale gas infrastructure.

There is no national oil and gas company in the United States. Instead, there are many private companies operating in the industry, including large international corporations. The activities of these companies are regulated at the state and Federal level. To begin the exploration of oil and gas wells businesses must obtain planning permission, permits for drilling and operating permit. The requirements for obtaining such permits are determined at the state level. There should also be public opinion, which often causes disputes. All permits must be obtained before the start of the study, or the applicant may face delays and financial penalties.

Environmental regulation can be viewed as having a positive impact on drilling of the Gaza strip in particular. Existing measures aimed at reducing greenhouse gas emissions, mostly have a negative impact on established coal-fired power plants. The economic impact of this has led to artificial acceleration of the natural gas sector. The government is interested in further exploration of shale gas and measures such as the reform act natural gas pipeline to speed up the Federal review process for interstate pipelines.

The effects of the clean air Act were mostly positive for drilling gas industry. The overall objective of the act is to reduce greenhouse gas emissions, with the long-term goal of reducing 95% of volatile organic compounds. The law provides that operators should take steps to capture natural gas that escapes into the air (green completion), and there are incentives for business to implement this technology ahead of schedule. Technology allows for natural gas should be captured and processed, and then sold instead of being released as waste. The estimated revenue expected to exceed the costs of compliance. Protection Agency United States environmental protection Agency (EPA) says that subject to the provisions of the clean air Act will cost $ 65 billion between 1990 and 2020, the savings from reduced premature mortality, reduced health care costs and increase productivity will add up to $2 trillion.

Although the implementation of this technology needs to be easy for large, multinational corporations, small companies can’t budget for the initial costs. About 80% of the domestic oil and gas companies in the United States are very small, often less than 10 employees. These initiatives can have a serious impact on the economic viability of these small operations.

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