Environmental Protection: Streamlining Petroleum Exploration and Production

Abstract

The petroleum industry is inherently subject to a tremendous degree of volatility through fluctuation in world market prices and vagaries of world politics. A more recent stressful demand on the existing domestic petroleum exploration and production system has been the burgeoning number of environmental regulations imposed on this segment of the industry. Prudent and acceptable oil-field practices must now include agency-regulated environmental protection measures. Many independent producers are unfamiliar not only with the regulatory agencies, but also with the jargon and ambiguities, of regulations that very widely from state to state. Whereas some companies perceive only the restrictions and added cost of regulatory compliance, other companies have sought to optimize benefits while minimizing financial burdens by approaching this modern necessity more creatively, thereby discovering numerous means to become even more competitive. The domestic oil field of the 1990s will be increasingly affected by environmental regulation and public opinion. A number of companies have taken a proactive position on environmental issues. Industry examples include Louisiana Land and Exploration Company's history of wetlands conservation and Chevron's SMART (Save Money and Reduce Toxics). The future of the quality of life of this nation, and indeed the planet as a whole, lies in ourmore » capability to deal concurrently with the issues of a petroleum-based economy while protecting the natural environment that sustains life.« less