A North American oil and natural gas industry study by global strategy consulting firm L.E.K. Consulting concluded that increasing emissions regulations and inefficient water management currently concern E&Ps in the low-price environment, the firm said May 20.

Service and supply companies can benefit by helping E&Ps, which are repositioning themselves in the slowdown, manage emissions regulations and water management issues. Companies that can help E&Ps meet new standards will thrive in the low-price environment, said Chris Rule, L.E.K.’s managing director. Some future regulations, Rule said, might help niche service companies, like those focused on vapor recovery.

The majority of customers and suppliers surveyed—69% and 70% respectively—expect increased regulation on freshwater recycling and wastewater management in the next three years.

Federal and state regulations on flaring and measurement of methane leaks have increased, with some states having stricter regulations than the Environmental Protection Agency.

This year’s survey also found that in North America, cost-control measures and efficiency measures have accelerated. Suppliers are consolidating, and drilling is declining. During the past 12 months, 168 oilfield equipment and services deals were announced or completed.

L.E.K. found that few companies have optimized efficient water disposal, and that an integrated water management solution combines delivery, treatment and disposal.

There are new restrictions on contamination controls, and there is increased pressure surrounding the issue of flaring.

This was London-based L.E.K. Consulting’s second annual study of the industry. About 300 decision makers in North America’s onshore and offshore drilling sectors were surveyed; they included CEOs, CFOs and wellsite supervisors.