Execs fear US drilling regs could boost costs
Research from Grant Thornton shows that US executives fear new regulations could make some exploration prohibitive.
The research, which surveyed more than 100 leaders in the US oil and gas industry, claims that 68% of participants believe an increase in drilling costs of more than 20% could make new projects uneconomical.
The concern is due to radical changes in US government regulations surrounding drilling safety and rig design - particularly in deepwater exploration - following the BP Macondo well explosion on 20 April 2010.
With the first deepwater permit being issued this month after a moratorium on all deepwater activity imposed by the US Governement afer the disaster, Grant Thornton's Loretta Cross said of the research findings: "Offshore operators and contractors continue to seek certainty in attempting to plan for the future while bracing themselves for the new regulatory requirements that will eventually be enacted."
While the potential regulatory cost fallout was a major concern, the research respondents also listed oil and gas prices and investment as top issues that could also affect their operations in 2011.
