Perceptions on energy regulations
While the recent EY Oil and Gas US Perceptions survey highlighted a very real disconnect between American consumers and the oil and gas industry, it also identified areas of overlapping interests that might provide an opportunity for greater understanding. One of these areas is regulation.
While 41% of consumers believe the industry is underregulated, 53% of oil and gas executives believe the industry is overregulated.
Regulatory priorities for the oil and gas industry
American consumers see significant benefits to oil and gas regulation, and they are skeptical that reducing regulation will benefit the public. When asked to select the top three regulatory priorities for the oil and gas industry, survey respondents – on average – were more likely to emphasize avoiding spills and accidents, protecting water quality, and encouraging clean energy development. Meanwhile, being energy independent and creating jobs ranked in the bottom three.
85% of consumers and 84% of executives agree regulations are necessary to ensure environmentally safe drilling practices.
A majority of Americans are willing to pay to achieve regulatory objectives.
A large majority of consumers also say they are willing to pay more for a gallon of gasoline to ensure regulatory priorities are met — undermining the conventional cost-to-consumers argument against more regulation. In fact, more than three-quarters of respondents say they are willing to pay more for gasoline if air and water quality regulations increase prices.