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Trump targets offshore rules
Advocates worry safety will suffer amid rollbacks
Struggling drilling operators in the Gulf of Mexico are benefiting from the Trump administration’s efforts. (Chris Carmichael/New York Times)
By Eric Lipton
New York Times

PORT FOURCHON, La. — A dozen miles off the coast, on a rusty, aging platform, workers in hard hats and overalls spend their days extracting oil and gas from the ocean floor before retreating at night into tiny weather-beaten steel cubes that act as dorms.

The platform, owned by a Houston-based energy company that until recently was bankrupt, has none of the grandeur — or profits — of the deep-sea structures more than 100 miles offshore that are operated by international companies like ­Exxon Mobil and Chevron.

But the company, Energy XXI, and other struggling operators in the shallow waters of the Gulf of Mexico are beneficiaries of the Trump administration’s efforts to increase offshore production here — in large part by upending financial, environmental, and safety regulations that the companies oppose.

While attention has been focused on President Trump’s disputed decision in January to reverse drilling restrictions in nearly all US coastal waters, the administration has also pursued a rollback of Obama-era regulations in the Gulf.

Those rules include safety measures put in place after the explosion and sinking of the Deepwater Horizon rig in 2010, a disaster that killed 11 people and resulted in the largest marine oil spill in drilling history.

Smaller oil and gas companies, many backed by Wall Street and private equity firms, say they need the relief to survive financially, and the top safety official at the Interior Department appointed by Trump has appeared to be an enthusiastic ally.

“Help is on the way; help is on the way,’’ the official, Scott Angelle, said in September at a gathering in Lafayette, La., of oil and gas executives from so-called independent companies, which focus on drilling alone rather than the extended drilling-to-gas-station operations of bigger competitors.

But an analysis of federal inspection data by The New York Times found that several of the independent companies seeking the rollback, including Energy XXI, had been cited for workplace safety violations in recent years at a rate much higher than the industry average.

Their offshore platforms suffer in some cases from years of poor maintenance, as well as equipment failures or metal fatigue on aging devices, records show.

Also, there was a string of serious environmental and safety episodes in the last six months involving independent operators, including the death in February of a worker who was removing firefighting equipment from a platform about 30 miles offshore, and an oil spill in October that is considered the largest since the Deepwater Horizon episode, according to Interior Department records.

“These regulations were written with human blood,’’ said Lillian Espinoza-Gala, a former offshore worker who now serves as an industry safety consultant and opposes easing protections. “The only way we can honor those who lost their lives is for us to learn how to do this in the correct way.’’

But Angelle has close personal and recent ties to the oil and gas industry, particularly the smaller companies seeking his intervention.

Now he is the top official at the Interior Department’s Bureau of Safety and Environmental Enforcement, a division created under President Barack Obama to toughen safety standards and enforcement in offshore drilling because of problems exposed by the Deepwater Horizon accident.

Angelle spent his first months on the job, records show, traveling between Washington, Texas, and his native Louisiana to meet with executives at most of the top offshore oil companies, including some repeatedly cited for safety violations.

“What appears to be going on is a redefinition of the agency’s mission,’’ said Michael R. Bromwich, a former federal prosecutor and inspector general at the Justice Department who became the first head of the bureau in May 2010.

“This is a safety and environmental protection agency,’’ Bromwich said. “It is not part of the agency’s mission or mandate to increase production of oil or gas. That is inappropriate.’’

Angelle declined to be interviewed for this article. But in a written statement, he disputed that his agency had backed off its commitment to safety. “We must never have another Deepwater Horizon or anything close to it,’’ Angelle said.

An agency spokeswoman said all Americans benefited from his efforts.

“The work we are doing in BSEE benefits the entire nation, and we are supporting the president’s objective of safely achieving energy dominance in order to contribute to national security, economic security and energy security,’’ said Eileen Angelico, the spokeswoman.

The agency is starting an enforcement effort that will focus inspectors on platforms with the most frequent problems, reducing paperwork requirements so they can spend more time on checking equipment.

But agency documents suggest moves he has already made could save the industry more than $1.3 billion in compliance costs over the next decade.

The Interior Department has joined the effort more broadly. Last year, the department suspended a requirement imposed on Gulf rig owners, a change that will save them hundreds of millions of dollars. The rule required owners to buy additional bonds or provide other assurance that they could cover the costs of removing rigs once they stopped producing.

The rule was meant to keep taxpayers from having to pick up the tab, but a collection of operators last year — with help from high-profile lobbyists — convinced the Trump administration that the requirement was too onerous. The change has mostly benefited independents like Energy XXI.