How Regulations Will Change Oil & Gas in 2021
Oil and fuel companies as a whole have changed dramatically over the last four years, owing to new technologies, new regulations and new business models, but the industry has forgotten to take advantage of these requirements and it will take a while for them to prevail, even though they are positioned in every region and for good reason. The next four years will be very important for the oil and gas industry and other sectors. There will be completely new regulatory requirements that use tools that we have been using for a long time, such as the Clean Air Act and the EPA's Clean Power Plan. Since the 1970s, we have seen a number of rules that have been very good - and that have adapted to the environment. This fashion gained momentum in 2016 and if it continues, I expect fundamental changes to take place in this arena by 2021. Strict permits and site controls will be more important in the industry to ensure compliance with new rules, and it will simply take longer than possible for them to work. Given that a number of new regulations, such as those of the Environmental Protection Agency (EPA) and the Department of Energy and Climate Change (DECC), have been introduced and are working well, I expect companies to reverse their approach to regulating the use of fossil fuels and other non-renewable energy sources. We could focus on environmental protection, site closure and restoration, or we could be moved into a new era of longer working hours, which is the new standard. In general, it seems to me that the most important changes to regulatory requirements could focus on state rules, taste and environmental protection. The number of rail accidents per 100,000 inhabitants per year in the United States rose to just over 2.6 in 2009, and I expect this number to rise well into the 2020s, as national security imposes new safety requirements on rail travel. A visible boom is the result of the introduction of new regulations such as the Clean Power Plan (CP) and the Safe Routes to School Act. Of course, this paper does not contain all the possible changes that the fuel and oil companies will go through, and highlights some of them clearly. If these directives are implemented, the oil and gas industry will comply with them, as they will certainly manifest themselves in the form of higher oil, gas and coal prices. The question is, are we prepared for such changes and what do these new working methods entail? The best thing we will do to prepare the industry for this kind of change is that it is just beginning to flow. This is inevitable, but we could do something special to make the transition a little less difficult later on. It undoubtedly opens up more working hours for people who are inclined and able to work, and it brings with it a far less destructive environment, whether in the form of less pollution, cleaner air and cleaner water, or, even better, lower living costs. The relationship between industry and the public and the private sector will be very dynamic over the next four years and beyond.