Oil and Gas Industry in
the Midst of Strictest
Regulations
N
ew standards, highly publicized spill incidents, public debates on drilling practices and the general sentiment that
oil and gas companies contribute greatly to environmental issues around the globe are causing the industry to
contend with some of the strictest regulations in the world. As regulations continue to grow in complexity and
reach, the increased enforcement and improved coordination among regulators increases the risk of noncompliance on top
of a smorgasbord of enterprise risks inherent to oil and gas companies.
The regulatory and reporting landscape today is particularly complex for oil and gas companies. The unpredictable nature of
emerging regulations has given birth to growing industry concerns about effectively managing risks in face of changing
rules and regulations. Regulatory pressures touch on every part of the business and with the growing number of laws today,
the cost of noncompliance can be significant. Organizations are faced with the challenge of effectively managing OSHA,
BSEE, USCG, DOT, EPA, Conflict Minerals, NI-52109, COBIT, ISO and compliance mandates such as Extractive
Industries Transparency Initiative (EITI), Amendments to EU Directives, Dodd-Frank Act Section 1504, SEC Rule 13(q),
SOX, FCPA and other compliance programs based on federal and state regulations.
A single oil and gas company can face multiple offshore and onshore regulations and standards – from exploration to
distribution. This could impact multiple sites and various compliance departments and could get highly complex, increasing
the risk factor. In order to comply with this added complexity, companies need solution that enables them to figure out
which regulations apply to which facility and assets and links and fosters communication across all facilities and assets
within the business in real time.
Noncompliance can result in production delays, cost overruns, unintentional loss of data, and even physical security threats
to company assets as a result of malicious activity. The cost of noncompliance and its effect on the business requires oil and
gas companies to rethink their approach to regulatory compliance. Companies now need tools that allow them to respond
with agility to market demands while keeping them in compliance and subsequently reducing exposure to noncompliance
and risk. They also need talent, organizational framework, systems, processes, and attitudes that are sufficiently flexible and
innovative in an evolving and uncertain marketplace.
360factors, Inc., a leading cloud-based Enterprise Risk and Compliance Management technology and services company has
been helping oil and gas companies since past several years in navigating their way through a changing regulatory
environment, managing risk and improving performance to increase operational excellence, sustainability and margins.
360factors provides robust, well-managed regulatory risk and compliance program that is supported by all levels of the
organization.
We work with oil and gas companies to understand their business risks and develop strategies to manage and leverage on
them. Our key experts understand business operations and processes, and they use their expertise to help clients define and
develop their strategies, and risk management and mitigation techniques.
We help companies to reduce operational costs and optimize business processes. We help our clients integrate their
initiatives in one platform, allowing them to adopt a systematic and organized approach to their cost reduction and process
improvement initiatives. Our regulatory risk and compliance management solution, powered by artificial intelligence,
breaks down silos and reduces costs incurred by multiple installations, minimizing the complexity for functional
departments and compliance initiatives while amplifying the overall productivity of the entire team.
August 2017
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