Ex-FERC Chairman: Biden Threatens Gulf Coast Jobs With Onerous Oil Rig Regulations

oil platform (Bernardo Ferrari for Unsplash)

The Biden administration, in line with its goal of significantly reducing oil production, has quietly implemented regulations that are likely to result in a significant loss of jobs in the oil industry across the Gulf Coast states, including Mississippi and Louisiana.

For any offshore producer of energy, part of the company’s financial calculus has to be the ability to comply with all imposed industry regulations that require companies to be able to disassemble the facility and restore the site after the end of production (“decommissioning”).

This can be expensive, so often, this process requires companies to demonstrate their capacity to pay for the decommissioning. This can be done by demonstrating financial strength and reliability or by purchasing surety bonds if that financial strength and reliability is not demonstrated.