Oil industry braces for possible increase in federal regulation

The Texas oil boom has helped lift the country out of the recent recession and created hundreds of thousands of well-paying jobs. The Lone Star State has added billions in tax revenue through its employment of over three-quarters of all oil and gas industry workers. However, this prosperity could be challenged by environmental groups and federal agencies such as the Environmental Protection Agency (EPA), according to a report from the Texas Independent Producers and Royalty Owners Association (TIPRO).

The report cites "overreaching regulations" that are specifically designed to target oil and gas producers. The association believes that Texas' business-friendly atmosphere and common-sense approach to regulation has increased its appeal to outside investors, which could be threatened with the approval of increased regulations. 

"We're certainly blessed with an abundance of oil and gas in the state but the regulatory body that oversees the industry – the Texas Railroad Commission – is considered a preeminent regulatory body in the country for oil and gas oversight," TIPRO President Ed Longanecker wrote in a statement accompanying the report. "They are a model for other oil and gas states … They take a very sensible and logical approach to regulatory the industry versus our own federal government, which seeks regulations that are overreaching and may sometimes target the oil and gas industry."

While it is important for the environmental impact of the oil and gas industry to be considered, it should be done so in a way that supports the needs of both the community and industry stakeholders. 

For organizations seeking guidance on how to make their processes more efficient while reducing potentially harmful environmental impact, oil field management consulting can often provide the necessary insight needed to move forward.