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US announces new regulation to prevent offshore rigs Explosions

April 13, 2015 By Kyle Mills Leave a Comment

AUSTRALIA-THAILAND-ENVIRONMENT-POLLUTION-SPILL

US president Barack Obama-led government on Monday announced a new proposal to regulate offshore oil and gas rigs in order to improve the standards of equipments and the designs of wells, while giving due consideration to avoid a catastrophic spill just like the one occurred in the Gulf of Mexico in the year 2010.

Interior secretary Sally Jewell said, “Unfortunately, some of our regulations have not kept pace with the speed of innovation. I believe these regulations will enable us to both grow the economy and protect our resources.”

The announcement comes at a time when the Obama administration is taking innovative steps to open up new federal water areas off the Atlantic Coast for the purpose of drilling. Notably, the government’s decision to carry out drilling projects along the coastline has infuriated the environmentalists.

Jewell said that the new rule aims to balance the business interests with the concerns raised by the environmentalists.

According to the government officials, the newly proposed regulation was developed following rigorous consultation with industry representatives, environmental experts, academicians and others people from the related field.

The government has asked for feedback from the public within 60 days on the regulation after which the US Interior Department will revise the proposal for final its enactment.

As per the estimates of the Interior Department, the new standard would cost a total of USD 883 million to around 90 companies over a period of 10 years.

 

Filed Under: Business & Company Tagged With: Barack Obama, Sally Jewell, US Interior secretary, US offshore oil and gas rigs, US Offshore Rigs Explosions

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