Bud's Offshore Energy (BOE)

from Platts Oilgram News:

Representatives Ed Markey of Massachusetts and Rush Holt of New Jersey introduced the so-called No Free Inspections for Oil Companies Act (H.R. 2566) July 15, in reaction to House Republicans’ proposal for funding the Bureau of Ocean Energy Management, Regulation and Enforcement. About $35 million short of the Obama administration’s request, the GOP’s $154 million budget rejected new and more expensive fees on offshore operators. The administration wanted to ratchet up industry fees to $65 million a year, from $10 million, to pay for a tougher inspections regime.

The annual inspection fees debate, a budget season ritual for 20+ years, has picked up intensity and financial significance in the post-Macondo spotlight. However, discussions about regulatory philosophy and the fundamental program decisions that dictate inspection strategy are still absent. Safety and pollution prevention are the goals, not inspections. While inspections are an essential part of any safety regime, they are just one component of a comprehensive regulatory program. More inspections would not have prevented Macondo. Better standards, training, technology, and attention to prior incidents (most notably Montara) may have.