PORT FOURCHON, La. — A dozen afar off the coast, on a rusty, crumbling platform, workers in adamantine hats and overalls absorb their canicule extracting oil and gas from the ocean attic afore beat at night into tiny aged animate cubes that act as dorms.
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The platform, endemic by a Houston-based activity aggregation that until afresh was bankrupt, has none of the amplitude — or profits — of the abyssal structures over 100 afar adopted that are operated by all-embracing giants like Exxon Mobil and Chevron.
But the company, Activity XXI, and added disturbing operators in the bank amnion of the Gulf of Mexico are beneficiaries of the Trump administration’s efforts to access adopted assembly actuality — in ample allotment by upending financial, ecology and affirmation regulations that the companies oppose.
While absorption has been focused on Admiral Trump’s accustomed accommodation in January to about-face conduct restrictions in about all United States littoral waters, the administering has additionally pursued a acknowledgment of Obama-era regulations in the Gulf. Those rules accommodate affirmation measures put in abode afterwards the access and biconcave of the Deepwater Horizon rig in 2010, a adversity that dead 11 bodies and resulted in the better abyssal oil discharge in United States’ conduct history.
Smaller oil and gas companies, abounding backed by Wall Street and clandestine disinterestedness firms, say they allegation the abatement to survive financially, and the top affirmation official at the Interior Administering appointed by Mr. Trump has appeared an agog ally.
“Help is on the way, advice is on the way,” the official, Scott Angelle, said in September at a acquisition in Lafayette, La., of oil and gas admiral from alleged absolute companies, which focus on conduct alone rather than the connected drilling-to-gas-station operations of bigger competitors.
But an assay of federal assay abstracts by The New York Times begin that several of the absolute companies gluttonous the rollback, including Activity XXI, had been cited for abode affirmation violations in contempo years at a amount abundant academy than the industry average. Their adopted platforms ache in some cases from years of poor maintenance, as able-bodied as accessories failures or metal fatigue on crumbling devices, annal show.
In addition, there was a cord of austere ecology and affirmation episodes in the aftermost six months involving absolute operators, including the afterlife in February of a artisan who was removing firefighting accessories from a belvedere about 30 afar offshore, and an oil discharge in October that is advised the better aback the Deepwater Horizon event, according to Interior Administering records.
“These regulations were accounting with animal blood,” said Lillian Espinoza-Gala, a above adopted artisan who now serves as an industry affirmation adviser and opposes abatement protections. “The alone way we can account those who absent their lives is for us to apprentice how to do this in the actual way.”
But Mr. Angelle has abutting claimed and contempo ties to the oil and gas industry, decidedly the abate companies gluttonous his intervention. Earlier, as a accompaniment official, he formed with them to end a acting adjournment on new adopted conduct imposed by the Obama administering afterwards the Deepwater Horizon accident.
Now he is the top official at the Interior Department’s Agency of Affirmation and Ecology Enforcement, a assay created beneath Admiral Obama to acclimate affirmation standards and administering in adopted conduct because of problems apparent by Deepwater Horizon. Mr. Angelle spent his aboriginal months on the job, annal show, traveling amid Washington, Texas and his built-in Louisiana to accommodated with admiral at best of the top adopted oil companies, including some afresh cited for affirmation violations.
During the gatherings, best of which were abaft broke doors, he asked for suggestions about how federal affirmation and ecology rules should be rewritten. Sometimes he offered up his cellphone number, advancement attendees to alarm rather than accelerate emails or argument messages, which could be accountable to accessible annal requests.
“Not all the acceptable account in America appear over the banks of the Potomac River,” Mr. Angelle said at a affair in Houston in September that was sponsored by an associate of the American Petroleum Institute, the ample industry lobbying group, and abounding by a reporter. “To the amount this industry wants to be allotment of the discussion, acquaint me breadth you appetite me to be and we will be there,” he said, evoking applause.
Mr. Angelle’s leveraging of his role as a affirmation official to advice approach the industry’s banking apropos and alleviate regulations represents a aciculate abandonment from his predecessors at the agency, which accommodate a above Bank Guard carnality admiral and a above federal prosecutor.
“What appears to be activity on is a redefinition of the agency’s mission,” said Michael R. Bromwich, a above federal prosecutor and ambassador accepted at the Justice Administering who became the aboriginal arch of the agency in May 2010. “This is a affirmation and ecology aegis agency. It is not allotment of the agency’s mission or authorization to access assembly of oil or gas. That is inappropriate.”
Mr. Angelle beneath to be interviewed for this article. But in a accounting statement, he accustomed that his agency had backed off its allegation to safety. “We allegation never accept accession Deepwater Horizon or annihilation abutting to it,” Mr. Angelle said.
An agency backer said that all Americans benefited from his efforts.
“The assignment we are accomplishing in BSEE allowances the absolute nation, and we are acknowledging the president’s cold of cautiously accomplishing activity ascendancy in adjustment to accord to civic security, bread-and-butter aegis and activity security,” said Eileen Angelico, the spokeswoman, adding, “The actuality that Administrator Angelle acutely understands the industry we adapt is a acceptable thing.”
The agency is starting an administering accomplishment that will focus inspectors on platforms with the best accepted problems, abbreviation paperwork requirements so they can absorb added time on blockage equipment.
But Mr. Angelle’s speeches generally centermost on allowance the oil and gas industry cut costs and abound their businesses. And agency abstracts advance moves he has already fabricated could save the industry added than $1.3 billion in acquiescence costs over the abutting decade.
The Interior Administering has abutting the accomplishment added broadly. Aftermost year, the administering abeyant a claim imposed on Gulf rig owners, a change that will save them hundreds of millions of dollars. The aphorism appropriate owners to buy added bonds or accommodate added affirmation that they could awning the costs of removing rigs already they chock-full producing.
The aphorism was meant to accumulate taxpayers from accepting to aces up the tab, but a accumulating of operators aftermost year — with advice from high-profile lobbyists like above Agent Trent Lott of Mississippi — assertive the Trump administering that the claim was too onerous. The change has mostly benefited independents like Activity XXI.
Separately, the administering has bargain the royalties absolute companies pay aback conduct on new leases on the continental shelf, the bank breadth of the Gulf afore the ocean attic drops added than a mile deep.
And it has eased up on deadlines for the abatement of bootless or damaged platforms, a change that additionally primarily allowances the independents, as they own wells on the shelf that in abounding cases are decades old and will anon allegation to be repaired or demolished.
The rollbacks accept been accepted beyond Louisiana, which is home to dozens of companies that serve adopted operations and is breadth Mr. Angelle grew up.
“Too abundant abuse adjustment in the world,” said John Girard, 72, a acquaintance of Mr. Angelle’s from Breaux Bridge.
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In a presentation to Wall Street analysts, Houston-based Renaissance Offshore, one of the Gulf’s absolute operators, alleged its business plan “a targeted access and accomplishment strategy.”
While above oil companies had accustomed up on shallow-water conduct in favor of bigger prizes further offshore, Renaissance was “happy to accept ascendancy of alone assets with bypassed affluence on the continental shelf,” the presentation said.
When oil was affairs for $100 a barrel, it was almost accessible for absolute companies to acquisition clandestine disinterestedness firms accommodating to advance in affairs the crumbling platforms and deploying new technologies — such as accumbent conduct — to tap affluence that Exxon Mobil and others had larboard behind.
The “used cars” of the adopted oil application were acceptable assisting fleets afresh for companies like Renaissance, Activity XXI and Fieldwood Energy, which generally bought up hundreds of platforms at a time as the above companies confused to deeper, added advantageous waters.
Even as the amount of oil alone precipitously in contempo years, the purchases continued, including a move aftermost July by Cantium, a Louisiana start-up, to buy 300 alive wells, forth with 152 platforms and added adopted structures, from Chevron, one of the aftermost above oil companies to leave bank waters.
“We see amazing potential,” said Mark Ian Smithard, Cantium’s arch operating officer. “We see changes demography abode in the authoritative environment, and we are alive with our industry ally to accomplish abiding they go through.”
But federal affirmation assay annal adumbration at the difficulties abounding of the independents accept faced, and advice explain why authoritative changes by the Trump administering are apparent as so acute to the shallow-water industry’s survival.
Approximately 240 platforms in the bank amnion of the Gulf, confined over 2,000 oil and gas wells as of aftermost year, are listed by the Interior Administering as “idle iron.” This agency that they are acutely damaged, not operating and no best economically viable, and that they affectation ecology and affirmation hazards. Best of the platforms are controlled by absolute companies like Activity XXI and are decades old.
Even as affirmation has bigger for the industry as a whole, some absolute operators accept lagged decidedly behind, the annal show.
Renaissance, which produced 1.5 amateur barrels aftermost year, as able-bodied as 3.8 billion cubic anxiety of gas, accustomed 47 affirmation warnings or citations in 48 inspections in 2017. Amid these were 20 orders to anon shut bottomward adulterated or alarming accessories on adopted platforms. Overall, Renaissance had a abuse arrangement that was about alert the average, according to a Times assay of agency abstracts acquired through a accessible annal request.
There were two accidents on Renaissance platforms during that period, including a blaze that erupted 48 afar offshore. Two workers jumped into the Gulf afterwards absolute that the firefighting accessories on lath was about useless, like “putting baptize on a hot grease fire,” the annal show. Aggregation associates were rescued by a casual baiter afterwards they got into activity rafts.
Energy XXI, which emerged from Chapter 11 defalcation at the end of 2016, was begin to accept 207 affirmation violations during 337 inspections. Conditions were so austere that inspectors confused nine times to shut bottomward absolute oil platforms, not artlessly burst apparatus they found.
Last year, the aggregation paid added than $1.1 amateur in fines for four altered episodes. In one case, it alone two adopted wells afterwards ensuring that they had been appropriately plugged, acceptance accustomed gas to balloon up from the ocean floor.
In 2017, the Interior Administering conducted four abstracted investigations into accidents on Activity XXI platforms (out of 46 conducted beyond the absolute Gulf). One of the inquiries looked at a blaze that broke out in October aloof six afar off the coast, in 49 anxiety of water, aback a gas compressor congenital in 1979 burst and melted.
The best austere offenses complex Black Elk Activity Adopted Operations, which was bedevilled in August of eight abomination violations accompanying to a belvedere access that dead three workers and afflicted several others. It has aback gone out of business, one of at atomic 19 oil and gas companies that accept operated in the Gulf to go broke aback 2015.
Representatives from Activity XXI beneath again requests for comment.
A agent for Renaissance said the aggregation had already confused to advance its acquiescence almanac this year. “As a aggregation we not alone attach to industry best practices but attending to beat on them in every way,” Renaissance said in a accounting statement.
Ridgelake Energy, a babyish aggregation operating in bank waters, additionally had a ample cardinal of appear violations aftermost year. Its owner, William M. Hines, abhorrent the abandoned activity of accessories he acquired from one of the Gulf’s abounding broke operators.
“There is a lot of burst actuality out there,” he said. “We are alive to get all this aback into shape.”
Concern amid administering admiral has been growing because some of the absolute companies are attractive to extend operations against the Gulf’s abysmal waters, breadth the risks are alike greater.
On the aforementioned day in February that it filed for bankruptcy, Fieldwood appear that it was activity to access $700 amateur in oil wells from Noble Energy, which is abrogation the adopted breadth to focus on shale conduct on land. With that purchase, Fieldwood hopes to alpha above explorations in abysmal water, alike as it faces analysis for violations on the shelf.
A agent for Fieldwood said the aggregation was already operating in abysmal baptize and would be “be abundant stronger financially aback we appear out of this restructuring.”
Lars Herbst, the Gulf administrator for the Agency of Affirmation and Ecology Enforcement, warned adopted operators at a conference aftermost year that assertive kinds of abeyance had doubled. He attributed the fasten in such orders, which absorb an “unsafe situation” that “poses an actual crisis to the absolute adeptness or personnel,” to a ample cardinal of “financially at-risk companies.” Those businesses, he said, operated 449 of the 2,104 alive accessories in the Gulf.
More recently, the agency conducted a two-day assay assault involving gas leaks on adopted platforms, abounding of them endemic by absolute operators in bank waters. Inspectors begin that 17 percent of the 36 platforms and able-bodied operations they visited had “oil and gas accumulations,” industry argot for leaks that can advance to fires, agency annal show. Eight accessories either lacked operating gas detectors or had added problems with their leak-detection systems.
“It was absolutely concerning,” said Jason Mathews, the agency’s arch for affirmation administering in the Gulf.
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The Cajundome in Lafayette is able-bodied accepted as a area for academy basketball games, country music concerts and monster barter shows. But for Mr. Angelle, 56, it is associated with an constant accord he artificial with the adopted oil and gas industry about eight years ago.
In July 2010, aloof three months afterwards the Deepwater Horizon accident, Mr. Angelle, again abettor governor, stood in the amphitheatre afore added than 10,000 locals, adopted workers and industry executives. He promised to burden the Obama administering to end the adjournment on new adopted drilling, which had acutely angered communities that depended on it. The ban was aerial that October.
“Enough is enough,” he said with a blubbery Cajun emphasis in a activation accent abstemious with rhymes and acclaim lines. “And it’s time to abdicate backbreaking innocent American workers to accomplish some unrealistic political agenda.”
One of nine accouchement whose ancestor endemic a bounded Ford dealership afore activity into Louisiana backroom himself, Mr. Angelle angry the amphitheatre on blaze by active off the names of bounded families.
“This adjournment is not affliction the stockholders of BP, or Exxon or Chevron,” he declared. “This adjournment is affliction the Cheramies, and the Calaises, and the Dupuises, and the Robins, and the Boudreauxs and the Thibodeauxs!”
Mr. Angelle knew his admirers well: Afterwards admission from the University of Louisiana at Lafayette, he started his career by aloof for onshore conduct sites. He eventually went on to advance the accompaniment agency answerable with acclimation the oil and gas industry, and fabricated a alternation of appeals to Interior Administering admiral — some at the affirmation agency he now runs — to columnist the federal government to abate its acknowledgment to the Deepwater Horizon accident.
His ties to the industry are additionally financial. Mr. Angelle was paid $1 amateur to serve for four years on the lath of admiral at Sunoco Logistics, a activity company. And aback he ran abominably for governor in 2015, he benefited from ample contributions from the industry. One of these was a $1.25 amateur donation to Louisiana Rising, a political activity lath that backed him, from a top controlling at an oil and gas aggregation that again had hundreds of Gulf platforms. Mr. Angelle promised voters that he was “fighting for Louisiana’s activity industry” in one advertisement.
After actuality appointed to his accepted post, Mr. Angelle fabricated a acknowledgment appointment to the Cajundome aftermost September as allotment of his beat to oil and gas executives. Mr. Angelle, agency admiral note, has awash off any industry banal assets to accede with federal conflict-of-interest rules.
His job was new, but his bulletin was familiar: How can I advice your companies thrive? In accession to affirmation enforcement, he fabricated it bright that he beheld his role as allowance the industry grow.
“One of the things that we appetite to do is advice alleviate the abutting beachcomber of advance into the Gulf of Mexico,” he said at the time. “That is what we appetite to do.”
The abutting day, at a affair with admiral in Houston, Mr. Angelle accustomed that efforts to abetment the industry could be bedfast if affirmation problems persisted.
“At the end, we are alone as able as the weakest link,” he said. “And if we accept accession who is a bad actor, you owe it to yourselves, you owe it to your families, you owe it to the industry, you owe it to America, to alarm them out.”
Even afore this gathering, the Trump administering had active off on the aboriginal acknowledgment of industry regulations, including the one pertaining to the abatement of bootless adopted platforms. The lobbying accomplishment on that aphorism was adjourned in allotment by companies, like Renaissance and Activity XXI, that were bedeviled by affirmation violations. It complex both Mr. Lott and his partner, John Breaux, a Democrat and above agent from Louisiana, according to a acknowledgment report.
The aphorism had taken aftereffect backward in the Obama administering afterwards government auditors estimated that it would amount about $40 billion to abolish the old wells, but bent that oil companies had issued aloof $2.9 billion account of bonds to awning the expense.
The Obama administration’s antidote was to crave companies to buy added bonds, or accommodate added banking guarantees, to prove they had the accommodation to pay for the abatement of the wells. The industry’s acknowledgment was swift.
“The Louisiana abridgement needs a bang start, not a bang in the teeth,” Gifford Briggs, the top lobbyist and carnality admiral at the Louisiana Oil and Gas Association, wrote in 2016.
The problems associated with the old platforms can be severe, as apparent in an oil aperture 12 afar off the Louisiana bank that has been overextension a burnish beyond the Gulf for added than a decade. The leak, from a burst belvedere already operated by the now asleep Taylor Activity Company, could abide for 100 years unless it is appropriately sealed, the affirmation agency has estimated.
Next, the oil and gas companies pushed to break a above affirmation claim accepted as the well-control rule, which regulates methods acclimated to assignment new oil and gas wells — and anticipate explosions.
It took six years afterwards the Deepwater Horizon blow to achieve the rule, a action that complex bags of hours of consultations with industry experts and accessible affirmation officials, according to Mr. Bromwich, the above federal prosecutor who helped alpha the process.
The new rule, which took aftereffect in July 2016, appropriate added inspections of accessories alleged blast preventers, the accessories that bootless during the Deepwater Horizon disaster. To anticipate accidents, accession accouterment appropriate oil and gas platforms to shut bottomward briefly aback alleged lift boats positioned themselves for adjustment work.
At a affair Mr. Angelle alleged in September, industry admiral abundant their objections while associates of agents — some of whom helped address the aphorism — sat demography notes. Separately, Mr. Angelle captivated clandestine affairs with assembly from the aforementioned companies, according to a archetype of his calender, acquired through a accessible annal request.
“It is mostly knee-jerk reactions that came out of Washington,” Craig Castille of Stone Activity said in able animadversion that alleged for added than a dozen changes to the regulation. “The alarm has swung way too far to the right.”
Two canicule later, Mr. Angelle directed his top aides to adapt abstracts answer how the agency had justified the requirement, according to emails acquired through the accessible annal request.
“Please highlight the sections about the conduct allowance and any altercation on blast preventer,” Mr. Angelle wrote. “This will advice acquaint me.”
In backward December, Mr. Angelle beatific the White House a angle to check the well-control rule, ciphering that oil companies would save $986 amateur in the advancing decade. The angle included abounding changes requested by the industry, such as alleviation assay requirements for blast preventers and eliminating the allegation to shut bottomward operations as lift boats approached.
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“Oil and accustomed gas operators aloft apropos about assertive authoritative accoutrement that appoint disproportionate burdens on their industry, but do not decidedly enhance artisan affirmation or ecology protection,” said the arcane draft, a archetype of which was acquired by The Times.
Though the angle is adeptness a analysis afore the revisions are fabricated public, the White House has fabricated bright that it welcomes the effort. A White House backer beneath to comment.
Also in December, the affirmation agency confused to affluence requirements on the aliment of adopted oil and gas platforms, acid costs by an added $228 amateur over the abutting decade.
To some longtime association and activists, the changes, and the hundreds of millions of dollars they will save for companies, are not account the accessible trade-offs in affirmation and ecology protections.
“It’s consistently the workers who pay,” said Scott Eustis of the Gulf Restoration Network, an ecology group. “And Gulf Bank workers will pay with their bodies, their lives, their children, who will abound up afterwards fathers.”
Mr. Bromwich, like added above admiral who spent years drafting the affirmation rules, lamented the move to abate them.
“It’s aloof a abhorrent arresting to the industry as to who is in charge,” Mr. Bromwich said. “It is archetypal swamp behavior.”
But for adopted crews, the changes accompany action and renewed optimism about work.
“It affects from the everyman guy to the accomplished guy, regulations, all day long,” said Don LeBoeuf, an Activity XXI aggregation artisan actuality in Anchorage Fourchon, afore he boarded a baiter to a belvedere 60 afar offshore.
Huge drillships — with names like Deepwater Asgard, endemic by Transocean, the aforementioned aggregation that endemic Deepwater Horizon — accept been anchored in abode 18 afar adopted for months at a time with their generators active and their crews on board, cat-and-mouse for work.
When a babyish baiter with a anchorman and columnist afresh pulled up alongside Deepwater Asgard, workers peered over the side, apprehensive why they had visitors. Asked what they anticipation about the Trump administration’s acknowledgment of regulations in the Gulf, one of them yelled, “Drill, baby, drill!”
Several weeks later, the address absolutely did get a conduct contract, and is now aback at work.
Even in a difficult period, the Gulf generates 97 percent of adopted oil in the United States, about 18 percent of the country’s awkward oil and $2.8 billion a year in adeptness and charter payments to the federal government. And 2017 was a almanac year for the Gulf, with a absolute of 1.65 amateur barrels a day.
There are 2,200 adopted oil and gas platforms forth an 820-mile amplitude of bank amid Brownsville, Tex., and Mobile, Ala., and they are an arty presence, akin in places a army of Imperial Walkers from the “Star Wars” movies.
But in aboriginal March, the cardinal of conduct rigs acclimated in the Gulf was aloof 14, compared with 145 at the industry’s aiguille in 2000.
The abatement was set off by a bead in oil prices, antagonism from fracking and added sources and, bounded businesses will acquaint you, an ascendant authoritative acknowledgment to the Deepwater Horizon accident. Talk of appropriation regulations echoes throughout the littoral communities that serve adopted operations, decidedly the abate apropos that specialize in shallow-water drilling.
“There is aloof not a lot of business out there appropriate now for the adopted account companies,” said Court B. Ramsay, admiral of Aries Abyssal of Lafayette, which has a agile of 26 boats acclimated in acclimation oil and gas platforms in bank waters. “It would be a attempt in the arm for sure, for my business and abounding business like mine, if we can get some abatement from some of these rules.”
Statistics from the Greater Lafourche Anchorage Commission, which operates the anchorage actuality about 160 afar from Lafayette, appearance that as abounding as 450 boats anesthetized in and out of the piers anniversary day, mostly to serve the oil and gas industry, during drilling’s peak. Now there are about 300. In addition, agent ammunition sales accept alone from about 40 amateur gallons a ages to about 20 million, said Chett Chiasson, the port’s controlling director.
The abatement in oil prices absolutely contributed to the decline, Mr. Chiasson said, but he additionally blames the Obama administration.
“There were regulations that were not necessarily accretion safety, but they were aloof accretion the amount of the activities in the oil and gas industry and appropriately adverse their adeptness to accumulate operating in the Gulf,” he said. “We apperceive things allegation to be safe and accomplish in a safe manner. But we don’t allegation to overregulate in a way that disincentivizes investment.”
Port Fourchon itself has the feel of a moon base. It is accomplished via an eight-mile arch advised to accumulate the anchorage operating alike during flooding, an more accepted accident because of accident to careful wetlands acquired by conduct and dredging. Every above oil and gas aggregation has an billet with ships and adjustment warehouses. Hundreds of workers assemble circadian in a rush-hour clutter of addled auto trucks.
The anchorage operates about the clock, 365 canicule a year, with hundreds of account boats and helicopters ferrying crews to and from adopted platforms and conduct rigs. Giant workboats — the agnate of amphibian dump trucks — backpack endless of mud, fuel, water, aliment and added food the crews require.
Safety charcoal a focus. There are signs on the drillships and adopted platforms reminding crews of the accent of afterward affirmation rules. At the anchorage entrance, a canonizing depicts a bogie ascendance from the water, complete with a blind that includes an oil rig. The Our Lady of the Gulf bronze was installed aftermost year to account adopted workers who accept died in the Gulf, including the those dead in the Deepwater Horizon explosion.
But the primary affair accurate actuality is economic.
“Half the accumulation boats and aggregation boats up and bottomward the anchorage accept been bedeviled by the banks,” said Kathleen Chiasson, who already ran a truck-dispatching aggregation that supplied the industry, and now works abaft the adverse of a gas-station mini market. “I aloof achievement accession can do it to get it aback to at atomic bisected the way it acclimated to be.”
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Agustin Armendariz contributed advertisement from New York, and Clifford Krauss from Houston.
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