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Environmental challenge set to stalk offshore industry
- Source: First Break, Volume 15, Issue 8, Aug 1997,
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- 01 Aug 1997
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Abstract
Whether the oil industry likes it or not, environmental considerations are becoming a central concern. According to a new study Environmental Concerns in Offshore Oil & Gas - The Business Implications - by Smith Rea Energy Consultants, 'the current political climate is now one that accepts man-made global warming as a real possibility and reflects real concern about the pollution of the oceans.' A more stringent future Smith Rea's conclusion is that 'there is every indication that environmental regulations will become progressively more demanding and with it the spending of oil companies on the necessary extras.' It does not believe that European governments in general are likely to find a CO2 tax politically acceptable, though a case can be made for its beneficial effect in Norway. If they do accept such a tax, then environmental spending would accelerate even more. With or without it, Smith Rea suggests that the list of related business areas - environmental impact assessments, pollution clean-up, de-commissioning, separation techniques, flare technology, injection, monitoring and controls - is bound to grow.