Tighter regulations to follow Gulf oil spill

US: The U.S. Congress is turning its focus this week to the federal government’s response to the Gulf of Mexico oil spill, but the offshore oil drilling industry is far from off the hook.

Congressional pressure on federal agencies, especially the Interior Department’s Minerals Management Service, is likely to lead to tighter rules for the oil and natural gas sector.

The Senate Homeland Security committee kicked off a series of hearings examining the government’s role in the cleanup of the massive oil leak threatening the U.S. Gulf Coast on Monday with testimony from Homeland Security Secretary Janet Napolitano.

Interior Secretary Ken Salazar and Environmental Protection Agency chief Lisa Jackson are scheduled to answer lawmakers’ questions regarding the rig disaster on Tuesday. Executives from BP Plc.and Transocean Ltd will also face more congressional grilling this week. BP is already facing legislation that would make the company pay more for the economic damages resulting from the rig accident.

Meanwhile, the White House last week offered its own legislative plan to pay for the spill. Following is a look at some of the new laws and regulations that may result from the spill.

Facing attacks for not doing enough to prevent the rig disaster, the Interior Department last week announced it would change the way it oversees offshore drilling. In addition to separating the Minerals Management Service’s oil royalty collection and safety inspection roles, the department is reviewing environmental permitting procedures for offshore oil production.

As part of the shift, the Obama administration has asked for an additional $29 million to pay for more inspections of offshore platforms and a review of procedures.

Washington, Tuesday, Reuters