ECONOMIC-EFFECTS OF ENVIRONMENTAL-REGULATIONS ON FINDING AND DEVELOPING CRUDE-OIL IN THE UNITED-STATES

A number of legislative and regulatory initiatives being considered to protect the environment could affect the economics of U.S. oil and gas E&P. This paper summarizes the results of a comprehensive assessment of the potential cumulative energy and economic impacts of some of these initiatives on U.S. crude oil supplies. The results of the analysis clearly demonstrate that increased environmental regulations on U.S. crude oil E&P can significantly affect ultimate crude oil recovery. The extent of regulations imposed will determine the level of impact, but significant effects could be felt over a wide range of regulations, crude oil prices, and levels of development of extraction technologies.