Should the US government regulate the oil industry?

Answer 1

Sometimes a simple question doesn't result in a simple answer. This is one of them.

There are general regulations that apply to the oil industry and other industries. For example, discharges of fluids in the ocean or Gulf of Mexico require permits. This applies to many industries, not just the oil industry. Also, pollutants can not be discharged into the air. Marine regulations apply to all boats, and when the rig is in tow, it is considered a boat.

There are specific regulation that apply to drilling wells in leases within the US. These regulations help protect rig workers and reduce the risk of environmental damage. Drilling plans must be approved prior to drilling.

Other specific regulations apply to tankers, pipelines, storage tanks and refineries. Again, the concerns are generally safe operating conditions and reduced risk to the environment.

Industry groups such as the American Petroleum Institute develop standards and procedures for the design of wells and drilling equipment. While these are guidelines and not regulations, oil companies generally comply with API guidelines or in some cases, where possible, exceed the guidelineds.

So, I think your question is, should there be additional regulation of the oil industry in light of the BP oil spill? As it is quite controversial, I will not give an opinion. However, there is a general opinion by many that there are not enough regulations since the accident happened, costing lives and devastating environmental damage.

There are others who will argue that the industry is very motivated to make changes and and this is best done by self-regulation through groups like the API, which have more expertise in oil well drilling.