Summary: All phases of operations in the oil and gas industries--from production to distribution--rely on computer systems and equipment that are vulnerable to Year 2000 failures. Although the domestic oil and gas industries report that they have made substantial progress in making their equipment and systems Year 2000 compliant, risks remain. In February 1999, following an industrywide survey, the nation's oil and gas industries reported that, on average, they had finished validating 40 percent of their embedded systems. However, more than a quarter of the oil and gas industries reported that they did not expect to be Year 2000 ready until the second half of 1999---leaving little time to resolve unexpected problems. Because the United States imports more than half of its oil, the country is also vulnerable to Year 2000 failures of oil production and transportation in other countries. However, little is known about the Year 2000 readiness of foreign oil suppliers. Individual companies report that they are developing Year 2000 contingency plans, but there are no plans for a national-level risk assessment or contingency plans to cope with potential shortages and disruptions in the nation's oil and gas supply.
