Oil and gas drillers in the Gulf of Mexico lobbying for fewer rules and regulations may have a friend in the Trump administration, CNBC reports.
The report says President-elect Donald J. Trump's promise to open more federal waters to drilling will likely take years to fulfill, but efforts to peel back or change oil and gas regulations could gain more traction more quickly. Industry has complained tighter regulations add cost as low oil prices cut into operating margins, crippling projects.
"Under a Trump administration, operators may have a sympathetic ear," Wood Mackenzie Senior Manager Imran Khan wrote in a research note to clients.
The report highlights three areas where policy changes under a Trump administration could benefit drillers, including lowering the royalty rates offshore drillers pay to the federal government, easing new rules that require drillers to commit to covering the cost of removing offshore facilities and extending lease terms.