Post Tagged with: "new regulations"

Experts Predict Trouble Ahead for Gulf of Mexico Oil & Gas Operators

Experts Predict Trouble Ahead for Gulf of Mexico Oil & Gas Operators

New supplemental collateral requirements could severely damage independent Gulf of Mexico drillers, producers – Part 2 On Sept. 12, 2016, the federal government initiated big changes to its bonding requirements for the financial liability for decommissioning oil and gas assets on the U.S. outer continental shelf (OCS). The new requirements are game-changing, according to some experts who predict that the new requirements will drastically cut production from the OCS, send many OCS operators into bankruptcy and will cause a virtual end to the aftermarket for OCS leases. The Department of Interior’s Bureau of Ocean Energy Management (BOEM) is requiring cash, supplemental bonding and/or other collateral of all the operators and leaseholders on the OCS, with opportunities for companies who can pass a rigorous financial screen proving they have the financial wherewithal to self-insure. Last week’s significant rule change came in the form of a Notice to Lessees and Operators—known in[Read More…]