Offshore oil and gas resources, actions needed to better protect against billions of dollars in federal exposure to decommissioning liabilities : report to congressional requesters.

Format:

Book

Government document

Author/Creator:

United States. Government Accountability Office, issuing body.

Contributor:

Rusco, Frank.

Language:

English

Subjects (All):

United States. Department of the Interior--Rules and practice--Evaluation.

United States.

United States. Department of the Interior.

Oil and gas leases--United States--Management.

Oil and gas leases.

Petroleum in submerged lands--United States.

Petroleum in submerged lands.

Oil and gas leases--Management.

Genre:

Online resources.

Physical Description:

1 online resource (ii, 49 pages) : color illustrations

Other Title:

Actions needed to better protect against billions of dollars in federal exposure to decommissioning liabilities

Place of Publication:

[Washington, D.C.] : United States Government Accountability Office, 2015.

Summary:

Oil and gas produced on federal leases in the Gulf of Mexico are important to 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 Interior's management of liabilities from offshore oil and gas production. This report examines Interior's (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. GAO recommends that Interior take several steps to improve its data system, complete plans to revise its financial assurance procedures, and revise its cost reporting regulations, among other things.

Notes:

"December 2015."

"Accessible version."

"GAO-16-40."

Includes bibliographical references.

Online resource; title from PDF cover (GAO, viewed May 19, 2017).

OCLC:

935719728