U.S. Seeks Stricter Funding Rules for Abandoned Offshore Oil Wells
- Interior proposes new rules for bonds from bankrupt producers
- Several have escaped obligations after filing for Chapter 11
An oil platform off the coast of Louisiana.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
The U.S. is looking to tighten requirements on bonds issued by a growing number of bankrupt oil producers to deal with abandoned offshore wells that could eventually become environmental disasters.
The Interior Department is proposing rules to strengthen the issuance criteria after companies have filed for Chapter 11 and escaped financial obligations to cap their non-producing wells, said Walter Cruickshank, acting director of the department’s Bureau of Ocean Energy Management. The measure, being proposed jointly with the Bureau of Safety and Environmental Enforcement, will be subject to a 60-day public comment period.