GAO Report Finds that Oversight of Offshore Oil and Gas Infrastructure is Insufficient
On April 19, 2021, the U.S. Government Accountability Office (GAO) released a report entitled “Offshore Oil and Gas: Updated Regulations Needed to Improve Pipeline Oversight and Decommissioning.” In the report, it criticizes the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) for failing to adequately monitor and ensure the safe decommissioning of oil and gas infrastructure in the Gulf of Mexico.
There are about 8,600 miles of active offshore oil and gas pipelines on the seafloor of the Gulf of Mexico. GAO found that BSEE, the federal agency responsible for their monitoring and safety, does not conduct sufficient oversight to ensure the integrity of these pipelines. It does not inspect the pipelines directly, instead relying on monthly surface observations and pressure systems to detect leaks, both methods that are not always reliable.
BSEE has long recognized the insufficiency of its pipeline regulations, but efforts to improve them have been stalled since they were proposed in 2007. Without updating its regulations, BSEE will continue to fail to adequately monitor active pipelines.
This is also a serious problem for decommissioned pipelines on the seafloor of the Gulf of Mexico. Pipelines are supposed to be removed from the seafloor after they are no longer in use. However, if certain criteria are met, BSEE has the authority to allow pipelines to be “decommissioned-in-place” and left on the seafloor. Since the 1960s, such exceptions have been made for over 97 percent of all decommissioned pipelines, allowing about 18,000 miles of pipelines to be left in the Gulf.
BSEE also does not observe any decommissioning activities, inspect decommissioned pipelines, or verify information submitted about decommissioning. It does not ensure that decommissioning standards, like the cleaning of pipelines, are met. If a pipeline is not properly cleaned before it is decommissioned, it can leak oil and gas.
BSEE also doesn’t not conduct long-term monitoring of decommissioned pipelines, making it difficult to mitigate any long-term risks. Even if risks were found, no funding is available to address them.
GAO recommended that “BSEE take actions to further develop, finalize, and implement updated pipeline regulations to address long-standing limitations regarding its ability to (1) ensure active pipeline integrity and (2) address safety and environmental risks associated with pipeline decommissioning. Interior agreed with this recommendation.”
To read the full GAO report, click here.