More oversight: US Gulf
US Gulf players see increasing oversight
Operators in the US Gulf said federal regulators had increased oversight and are more likely to delay or deny projects since the Obama administration took office in January.
US Gulf players said they felt they were getting less cooperation from the US Minerals Management Service, which oversees offshore development, particularly when discussing costs of regulation.
They also felt the agency was quicker to issue fines.
Bruce McIninch, completion manager for US player Marathon Oil said his company was a month away from doing completions on a well in the Green Canyon area of the Gulf when the MMS denied a key permit.
“We’ve had a good rapport with MMS over the years,” he said, noting that operators would need to put more effort into providing the agency with information to make sure regulators understand more complex projects.
“It’s a new era,” he said.
Douglas Nester of Prime Offshore, said one of his company’s platforms in the Gulf has subjected to an unannounced “raid.”
Federal inspectors flew out to the location, took pictures and performed a few tests and left, he said.
“There is no doubt we are in a different world with the MMS,” he said.
“It’s going to be ugly.”
J Granger Anderson of US offshore player Energy XXI said he thought MMS was trying to prove to the public that it was a tough industry regulator after scandals that chronicled MMS officials in its Colorado office in taking drugs and having sex with industry representatives.
Anderson said the idea that MMS is “cozy” with industry was never true.
“The MMS has always been tough; it has always been fair; they have never been cozy – ever,” he said.
Some industry players attributed the change to inexperience.
“With the administration so young and so new they really haven’t had the experience,” Total E&P Research and Technology boss Brian Rovelli said. “I expect to see this type of push back.”