The oil and gas industry has been under increasing scrutiny regarding its environmental impact. Environmental regulations have been put in place to ensure that the exploration and production of oil and gas are conducted safely and sustainably. In this article, we will discuss the various environmental regulations and their impact on the oil industry.
Environmental Regulations and Guidance
The Department for Business, Energy & Industrial Strategy provides environmental regulations and guidance on offshore oil and gas exploration and production, offshore gas unloading and storage, and offshore carbon dioxide storage activities [1]. The guidance ensures that the oil industry conducts its operations in a manner that does not harm the environment. The guidance includes regulations on how to dispose of waste, how to manage chemicals, and how to minimize the impact of noise and vibration.
EU Environmental Issues Register
The EU Environmental Issues Register provides an overview of EU proposals for environmental legislation that have or may have impacts on the offshore oil/gas industry [2]. The register includes information on proposed legislation, as well as legislation that has already been enacted. The purpose of the register is to ensure that the oil industry is aware of potential regulatory changes that may affect its operations.
The 2020 EIA Regulations
For projects where the Oil and Gas Authority’s decision on whether to grant consent is pending at the time when the 2020 EIA Regulations came into force, Environmental Impact Assessments (EIA) are subject to the provisions of the regulations [3]. The regulations require companies to conduct an assessment of the environmental impact of their projects before commencement. The purpose of the regulations is to ensure that the oil industry considers the potential environmental impact of their projects before commencing operations.
Clean Air Act
The Clean Air Act impacts the drilling industry with regulations on the emission of pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter [4]. The regulations are aimed at reducing the impact of drilling operations on air quality.
Challenges Facing the Oil and Gas Industry
The oil and gas industry faces three major challenges: reducing costs, optimizing the performance of its industrial assets, and improving its environmental footprint [5]. The industry must reduce costs to remain competitive in a volatile market, optimize the performance of its industrial assets to increase efficiency, and improve its environmental footprint to meet regulatory requirements.
Oil Spills
Oil spills contaminate soil and water and may cause devastating explosions and fires. The federal government and industry are developing standards, regulations, and procedures to reduce the potential for accidents and spills and to clean up spills when they occur [6]. The regulations are aimed at reducing the impact of oil spills on the environment.
Environmental Impact Assessment Act
The Environmental Impact Assessment Act (EIA) shifts focus from maximizing profits and gains to paying attention to the environmental impacts of the oil operation [7]. The objective of the Act is to take into account all possible environmental risks and impacts of a proposed project before commencement.
Resource Conservation and Recovery Act
The United States has created an effective legal framework for enforcing environmental regulations on its oil and gas industry that many countries around the world can use as a model. The Resource Conservation and Recovery Act (RCRA) regulates solid and hazardous waste and underground storage tanks [8]. The regulations are aimed at ensuring that waste generated during the exploration and production of oil and gas is disposed of safely and does not harm the environment.
Risks Posed by Oil and Gas Operations
Operational activities of oil and gas companies pose several risks to the environment, which have the potential to affect not only humans and other living species but the entire ecosystem [9]. The risks include air pollution, water pollution, land degradation, and biodiversity loss. The regulations aim to minimize these risks and ensure that the oil industry operates in an environmentally sustainable manner.
Increasing Safety Regulations
The number of safety regulations in the oil and gas industry is increasing each year since governments, as well as customers, are trying to mitigate various potential health risks in the workplace and environmental damage, like explosions, oil spills, etc. [10]. The regulations are aimed at ensuring that the oil industry operates in a safe and responsible manner.
In conclusion, environmental regulations have had a significant impact on the oil industry. The regulations aim to ensure that the industry operates in a sustainable manner that minimizes its impact on the environment. The regulations cover various aspects of the industry, including waste disposal, air and water quality, and safety. The oil industry must comply with these regulations to remain competitive in a volatile market and maintain its social license to operate.