Gas and Oil Industries: Need to Consider Some Aspects

Climate Change


President Obama, in his recent speech addressed the immediate concerns over the climate change and encouraged sustainable energy as a prime goal for the country. Besides, EPA has already set out to emphasize on the regulation of greenhouse gases associated with gas and oil activities. A challenge for the oil and gas industry is to prove the government that the pubic and decision-makers have implemented the development of hydrocarbons that is compatible with low-carbon environment and so-called energy independence.

Oil Field Operations – Water and Air Pollution

‘Oil and gas operations in northeastern Colorado were noteworthy contributors to ozone last year.’ Besides the government has made the decrease of green-house gases as a main concern and EPA is also active to lead on emission policy. And in order to avail both the domestic and international favor for oilfield operations, this industry is expected to multiply its endeavors to successfully carry out all the operations that are environmentally friendly.

 

Water Use and Conservation

With the advancement of effective water conservation projects such as “rainy day” reserve fund- proposition for Texas, the EPA has been in the middle of its multi-year hydraulic fracturing study that is inspecting the affects of such fields operations on quality of the water. Consequently, such industry has planned out decrease of its water-use footprint in an array of operations and implemented observations of better engineering practices.



Tax Reform / Energy Tax Policy

Corporate tax reform in 2013,may include adjustments to the treatments of depletion allowance, intangible drilling costs and geophysical and geological amortization. All these tax adjustments, without deliberation of other variables, can portend a negative impact on investment and equities.



Overlapping regulatory environment for drilling and development of gas and oil reserves

The oil and gas industry might have to deal with overlapping regulatory challenges and regimes at all the levels of government body. Ultimately, 2013-14 is probably to define the federal government’s functions in regulating hydraulic fracturing and ecological impacts associated with shale development.

On the other hand, in the recent report, Energy Information Administration declared that domestic oil gas companies production is expected to go on the rise with the help of improved production technologies, particularly in shale formations. It further noted that crude production of US has witnessed its highest rise since the commencement of commercial oil extraction in 1859. Moreover, EIA indicated that oil imports will be mitigated with gasoline consumption and thereby using clean energy just to reduce more energy imports. Alongside, International Energy Agency also predicated that by 2020, U.S will become the largest oil producer across the world, with North America coming out a net oil exporter by 2030.

Thus, whatever may be the long run success of these industries, it’s hugely important to contemplate the aforementioned issues.