Energy (Oil & Gas/Renewable)
The energy sector has a diverse range of industries including oil, natural gas, and renewable energy sources. This sector’s significance has grown in recent years due to geopolitical shifts, environmental concerns, and the evolving landscape of energy consumption and production. The U.S. is one of the world’s largest producers of oil and natural gas, making the oil and gas industry a cornerstone of the national economy.
The oil and gas sector has seen a surge in M&A activity, driven by factors such as the need for operational efficiencies, the pursuit of technological innovation, and the shift towards sustainable practices. Before pursing M&A transactions, due diligence efforts must assess potential risks concerning the Foreign Investment Risk Review Modernization Act (FIRRMA) in the United States. Under FIRRMA, which revised the Committee on Foreign Investment in the United States (CFIUS) regulations, transactions involving critical technologies, critical infrastructure, and sensitive personal data are subject to heightened scrutiny. This includes investments in energy companies that could impact national security or infrastructure integrity.
The energy industry is regularly a target of Foreign Corrupt Practices Act (FCPA) investigations and enforcement. The FCPA consists of an anti-bribery provision and an accounting provision and is jointly enforced by the Department of Justice and the Securities and Exchange Commission. Additionally, anti-dumping and countervailing duty laws or other trade remedies may be invoked against imported renewable energy products that benefit from foreign subsidies.
As the global landscape evolves with shifting energy demands and environmental concerns, understanding the legal implications in the energy sector is fundamental to safeguarding its interests and promote a stable, secure, and sustainable energy future.
Representative Experience
- Preparing FCPA compliance policies and procedures for energy industry clients.
- Serving as expert witness on sanctions matters in an international arbitration related to the construction of a power plant in Vietnam.
- Conducting multiple know-your-customer due diligence reviews and advising on application of export controls and sanctions programs, including Russian and Iranian sanctions programs.
- Advising industrial companies on the application of the Nuclear Regulatory Commission and Department of Energy export regulations.
- Preparing responses to CBP requests for information related to pipeline products used in the oil and gas industry.
- Advising a nuclear fusion start-up company on the application of export control regulations to its activities.
- Advising companies in both the traditional and renewable energy industries regarding CFIUS jurisdiction over foreign investment.
INSIGHTS
CMMC Assessments and the Hidden Risk of ITAR Violations
By: Olga Torres, Managing Member
Date: 05/28/2026
For many contractors within the Defense Industrial Base, Cybersecurity Maturity Model Certification (CMMC) assessments are becoming far more than cybersecurity hygiene exercises. As companies strive to become CMMC compliant, they are increasingly uncovering facts suggesting potential violations of export control laws, including the International Traffic in Arms Regulations (ITAR), administered by the Directorate of Defense Trade Controls under the U.S. Department of State, and the Export Administration Regulations (EAR), administered by the Bureau of Industry and Security under the U.S. Department of Commerce.
Noteworthy FCPA Enforcement Developments
By: By Olga Torres, Managing Member
Date: 09/24/2024
The Department of Justice really wants violators of the Foreign Corrupt Practices Act (FCPA) to come forward: following a January 2023 revision of its Corporate Enforcement Policy that incentivized voluntary self-disclosure, the agency launched a DOJ whistleblower reward pilot program on March 24, 2024.
Post-G7 Sanctions – Putting the G7 Leaders Concerns into Action
By: Donna Wedgeworth, Senior Trade Advisor
Date: 06/17/2023
In May 2023, the leaders of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom gathered in Hiroshima, Japan, for the annual G7 summit. The symbolic significance of these global leaders meeting in the city devastated by an atomic bomb on August 6, 1945, was very impactful, particularly to Japan’s Prime Minister, Kishida Fumio, a Hiroshima native.
Alert on the Russian Oil Price Cap and Possible Evasion
By: Olga Torres, Managing Member
Date: 04/25/2023
The United States Office of Foreign Assets Control (“OFAC”) issued an Alert on April 17, 2023, warning U.S. persons about the possible evasion of the price cap imposed by the Department of Treasury on Russian oil.
Trade Alert: White House Announces New U.S. & G7 Actions Against Russia On One-Year Anniversary of Ukraine Invasion
By: Olga Torres and Alexander Dieter
Date: 02/24/2023
On February 24, 2023, the one-year anniversary of Russia’s invasion of Ukraine, the White House announced a series of actions that the U.S. and Group of 7 (“G7”) will take to support Ukraine and impose further costs on Russia.
Nuclear Regulatory Commission Suspends General License Authority to Export Radioactive Material to Russia
Date: 05/19/2022
On May 17, 2022, the Nuclear Regulatory Commission (“NRC”) issued an order, effective immediately, suspending the general license authority under NRC regulations to export radioactive material and deuterium for nuclear end use to Russia. Now, exporters of such material must apply to the NRC for a specific license to export to Russia.