There are two inevitable truths that will arise from the political fallout from the current oil spill in the Gulf of Mexico. The first is that new energy regulations are coming in the form of:

(i) increased review of the emissions from fuels and requirements for producer efficiency, see http://www.epa.gov/epawaste/hazard/tsd/td/combust/compfuels/exclusion.htm;

(ii) increased liability for energy producing operations, see http://www.terradaily.com/reports/Obama_aide_No_damages_cap_in_major_oil_spills_999.html; and

(iii) a strong push to reform energy policy through a comprehensive regulatory bill, see http://www.epa.gov/administrator.

The second is that unprepared firms will not be able to respond quickly enough to remain competitive once these regulations come into force, which will create opportunities to gain market share.

Within this context, the evaluation of energy firms' exposure to the risks and opportunities posed by climate change legislation and energy policy initiatives has taken on an added level of importance. Specifically, the window of opportunity to maneuver your organization to gain access to the pending opportunity of gaining market share through the implementation of proactive risk management strategies is beginning to close.

However, it is not too late to act to prepare for the anticipated shift in the trillion dollar energy market, nor is it too late to prepare to take advantage of the corresponding market share shifts where fortunes will be made and lost in rapid succession. To adequately administer a review of this caliber, it is imperative that you take a disciplined approach during these turbulent times through a three (3) stage process I have coined: ROI.

R = Review your organization for efficiencies through integrated process audit(s);

O = Observe and identify the opportunities for implementing cost effective risk management and loss mitigation techniques; and

I = Invest in the appropriate technology and internal business processes that will differentiate your firm and generate the greatest return on investment.

Through this approach you can identify the targeted best practices for your organization and implement the appropriate improvements to your business processes to seize the day when the opportunity arises in the near future.

If you would like to learn more, please contact Foresite System's Environmental Compliance Department via my email address travis.miller@foresitesystems.com or via phone at (408) 377-7400.

Words of Wisdom: Luck is when Opportunity meets Preparation.