The energy industry is booming in Texas, with oil and gas production reaching record highs. In fact, according to recent data from the U.S. Energy Information Administration, 43% of the crude oil produced nationwide comes from Texas. However, this growth has also led to an increase in claims and lawsuits against energy companies. What could be driving this trend? And how should energy companies address it?
Rise of environmental claims
One major factor driving this trend is the growing concern about environmental issues. As the energy industry expands, so does its environmental footprint. Oil and gas operations significantly contribute to air and water pollution in the state. As a result, more environmental groups and local communities are taking energy companies to court, alleging damages from pollution and other environmental harms.
Increased scrutiny of workplace safety
Another reason is the growing scrutiny of workplace safety. The energy industry is dangerous, and accidents on site can have devastating consequences. The Occupational Safety and Health Administration (OSHA) reports that the oil and gas industry has one of the highest rates of workplace fatalities in the country. Because of this, energy companies are facing lawsuits from injured workers and their families, claiming negligence and failure to provide a safe work environment.
Complexity of energy operations
The energy industry is becoming increasingly complex, with more sophisticated technology and equipment being used in drilling and production operations. While this can make the work more efficient, it can create new risks and liabilities. For instance, the use of hydraulic fracturing (fracking) has led to claims of groundwater contamination and other environmental damages.
What this means for energy companies
The increase in energy litigation is a wake-up call for energy companies to take proactive steps to manage their risks and liabilities. This includes implementing robust safety protocols, conducting regular environmental assessments and ensuring compliance with industry regulations. Energy companies should also be prepared to defend themselves against claims and lawsuits. Seeking legal guidance from experienced attorneys who understand the complexities of the energy industry would be a good first step in responding to such a situation.
By understanding the trends driving the increase in energy litigation, energy companies can take steps to protect themselves and their goals. With the right support, they can ensure a stronger and more resilient future.