Endangered Blue Whales Spotted Off California Coast

It’s day two of the federal government shutdown, and there’s no real sense yet of how long it might last. In the meantime, investment bank Simmons & Co has helpfully laid out some possible effects on the oil and gas industry, depending on its duration. This could include delays to additional Department of Energy approvals for LNG exports to non-free trade agreement countries.

“If the government shutdown continues beyond October 11, a funding lapse at the DOE could halt such activities as the approval of LNG export permits,” Simmons & Co said.

Here are other key components of Simmons & Co’s roundup:

In the event of a funding lapse, more than 94% of Bureau of Land Management employees would be furloughed.”Furloughing at the Interior Department’s Bureau of Land Management would halt the permitting of oil & gas leases on federal lands.”

“The Bureau of Ocean Energy Management would shut down many of the activities that have been deemed non-essential, including leasing activities, review of E&P plans and conducting environmental studies.” But some Bureau of Safety and Environmental Enforcement activities, such as offshore inspections and processing of development plans and drilling permit applications would continue, and “currently producing developments would be unaffected”.

A government shutdown extending past October 11 would result in the furlough of roughly 92% of Department of Energy employees. “The EIA [Energy Information Administration] would operate as normal until October 11, at which point weekly reports such as the Petroleum Status Report and Gas Storage would cease.”

The Environmental Protection Agency has already furloughed around 93% of its employees, and the Federal Energy Regulatory Commission will furlough around 95% of its staff in the event of a funding lapse.