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OFFSHORE OIL AND GAS RESOURCES Actions Needed to Better Protect Against Billions of Dollars in Federal Exposure to Decommissioning Liabilities

OFFSHORE OIL AND GAS RESOURCES Actions Needed to Better Protect Against Billions of Dollars in Federal Exposure to Decommissioning Liabilities


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About the Book

the U.S. energy supply. Historically, most offshore production was in shallow water, but more than two-thirds of the more than 5,000 active oil and gas leases in the Gulf are now located in deep water. When oil and gas infrastructure is no longer in use, Interior requires lessees to decommission it so that it does not pose safety and environmental hazards. Decommissioning can include plugging wells and removing platforms, which can cost millions of dollars. Interior requires lessees to provide bonds or other financial assurances to demonstrate that they can pay these costs; however, if lessees do not fulfill their decommissioning obligations, the federal government could be liable for these costs.GAO was asked to review Interiors management of liabilities from offshore oil and gas production. This report examines Interiors (1) procedures for overseeing decommissioning and estimating its costs, (2) procedures for obtaining financial assurances for these liabilities, and (3) challenges managing these liabilities. GAO reviewed agency regulations and procedures and interviewed officials from Interior, credit rating agencies, academia, and trade associations.


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Product Details
  • ISBN-13: 9781974438563
  • Publisher: Createspace Independent Publishing Platform
  • Publisher Imprint: Createspace Independent Publishing Platform
  • Height: 280 mm
  • No of Pages: 56
  • Weight: 154 gr
  • ISBN-10: 1974438562
  • Publisher Date: 10 Aug 2017
  • Binding: Paperback
  • Language: English
  • Spine Width: 3 mm
  • Width: 216 mm


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OFFSHORE OIL AND GAS RESOURCES Actions Needed to Better Protect Against Billions of Dollars in Federal Exposure to Decommissioning Liabilities
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