Why The Oil and Gas Industries Need To Follow Compliance Rules

The oil and gas industries are an integral part of any economy. However, in recent years, these industries have scrutinized several environmental issues such as air and water quality, offshore regulation, and chemical management.  

This has made the regulations incredibly complicated for the gas and oil industries. Since regulatory pressures touch every aspect of the business today, the cost of non-compliance to rules can be high.  

Lack of compliance by oil and gas industries can lead to several business issues that range from production delays to loss of data or even physical threats to the company’s assets.  

Thus, oil and gas industries need to follow compliance rules to reduce the risk of issues related to non-compliance.  

This article discusses some of the critical reasons oil and gas industries need to follow compliance rules.  

  • Reduced Greenhouse Gas Emissions  

Environmental compliance is a fundamental aspect of the oil and gas industry. While the ecological compliance rules protect the environment, it also helps the businesses understand their legal obligations. Following environmental compliance rules helps these industries reduce their impact on the natural landscape. Some of the standard tests conducted in the oil and gas industries include crude oil testing, testing hazards present in oil well drilling, and natural gas testing.  

The existing measures aimed at reducing greenhouse gas emissions may negatively impact established coal plants. This has led to the artificial acceleration in the natural gas sector, and the government is now exploring shale gas.  

Oil worker is checking the oil pump on the sunset background.
  • Improved Air Quality  

The clean air act aims to reduce the emission of greenhouse gases and aims to reduce volatile organic compounds in the air to a large extent. The rule also requires that industries capture the natural gas that escapes in the air and treat it.  

Though this technology’s implementation may not be an issue for large plants, smaller companies are severely impacted by the economic viability of using this technology.  

  • Improved Water Quality  

The water produced during the manufacturing of oil and gas amounts to nearly 80% of the industry’s residual waste that needs to be managed and disposed of. Thus, compliance with water quality regulations plays a crucial role in the oil and gas industries. 

The clean water act focuses on restoring and maintaining the surface waters’ physical, chemical, and biological integrity. The clean water act may limit the discharge of water pollutants in a national water body.  

By following compliance rules related to water quality, oil and gas industries effectively keep the national water bodies clean. This further helps in improving water quality and reducing the risk of water scarcity.  

  • Improved Health And Safety Standards  

In the oil and gas industry, workers often face fatal occupational injuries caused due to chemical exposure, fires, or explosions. To prevent fatal accidents in the oil and gas industry, the occupational health and safety administration or OSHA has established specific compliance rules for the working conditions.  

Some of the fatalities that can result during oil and gas extraction include vehicle accidents, falls, stuck in confined spaces, chemical exposures, and explosions. By following health and safety compliance rules set by OSHA, the companies can identify and eliminate hazards in their workplace. Thus, creating a safe working environment for their employees.  

Employers have to protect their workers’ health and safety according to the OSHA general industry standards, OSHA construction standards, and public duty clause of the occupational safety and health act.  

OSHA outlines specific rules that the oil and gas industries must follow and provides safety standards with guidelines to prevent fatal injuries. 


The gas and oil industries are considered a vital part of the country’s economy. Though these industries’ economic benefits are enormous, their operations do pose a threat to the environment.  

Over the years, the oil and gas industries have not only added significantly to the low air and water quality, but they have also been responsible for enormous greenhouse gas emissions.  

Keeping these aspects of the oil and gas industries in mind, the need to follow compliance rules becomes crucial. From following the environmental compliance rules that focus on the reduction of greenhouse gas emissions, to the clean air act that aims to capture the natural gas and treat it for further use, the compliance rules are crucial to protect the environment from the harm caused by the gas and oil industries. 

Following the government’s compliance rules not only helps restore the environment but also promotes the need for innovation and technology. This further helps ensure that the company’s workflow is smooth and the business can be successful with the integration of technology and following compliance rules.  

Clay Miller
the authorClay Miller
I am the creator/writer of and I'm an advocate for oceans, beaches, state parks. I enjoy all things outdoors (e.g. running, golf, gardening, hiking, etc.) I am a graduate of the University of Kentucky (Go Wildcats!!). I'm also a huge fan of the Pittsburgh Steelers. I was born and raised in the beautiful state of Kentucky.