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Oh no, industry standards!

Despite the stunning post-Macondo media revelation that regulators <gasp> use “industry standards” (you can’t slip anything past these folks!), there is no need to be fearful or anxious. Regulators of most technologically advanced industries, in the US and throughout the world, depend on such standards. Almost every US Federal agency uses standards to fulfill some of their objectives.

“Industry” standards are really consensus standards developed by experts who work for manufacturers, operators, service companies, universities, regulators, NGOs, and even consultants (for whom I suddenly have great respect :)).  Standards development, which is in accordance with specific protocols, is closely monitored and audited by designated organizations.

In the US, the use of standards is mandated by legislation that stipulates:

All Federal agencies and departments shall use technical standards that are developed or adopted by voluntary consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities determined by the agencies and departments

However, it is important to note that regulators have the final say about which standards or parts of standards they incorporate in their regulatory programs. Regulators are under no obligation to incorporate standards that they believe would compromise safety or environmental objectives.

US standards programs are administered by ANSI.  ISO, a network of the national standards institutes of 163 countries, with a Central Secretariat in Geneva, Switzerland, administers standards worldwide.

While standards developed by API and other organizations have served the US offshore oil and gas program well, improvements can be made.  A few suggestions follow:

  1. Increase the participation by technical specialists from all sectors of industry.  In some cases, corporate mergers and low participation have reduced the diversity of opinion and expert input needed to develop the best possible standards.  All offshore operators, service companies, and contractors should recognize their obligation to participate on standards committees.  Their plans for such participation should be outlined in their safety and environmental management programs.
  2. Increase regulator participation.  While resource constraints limit the involvement of regulators, participation in offshore standards committees should be a high priority.  Wherever possible, Federal, State, and international regulators should pool resources to ensure that standards committees are effectively monitored.
  3. Standards should be available online at no charge to any interested party.  API has taken an important step in that regard by agreeing to provide free access to standards referenced in OCS regulations.
  4. Spin-off API’s standards programs into a new entity.  While API has managed standards development independently from its advocacy functions, the credibility of the standards programs would be enhanced if that work was performed in a separate organization. API’s highly visible advocacy work could be perceived as influencing standards development practices and priorities.  Such perceptions are detrimental to public confidence in critical safety and pollution prevention standards.

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“The goal of our efforts is a culture of safety, in which protecting human life and preventing environmental disasters are the highest priorities, while making leasing and production safer and more sustainable,” said Assistant Secretary Wilma Lewis, who chaired the Safety Oversight Board.

The report of the Department of the Interior’s Safety Oversight Board has been posted on the DOI website.  The report recommends certain improvements in DOI’s offshore oil and gas regulatory program. Because of my participation in this project, I won’t comment on the specifics of the report.  I will say that I was impressed by the professionalism of the Board and the DOI staff who assisted with the project.  All views were openly discussed and carefully considered.

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Courtesy of Upstream:

UK Workers Accuse Transocean of Bullying and Intimidation.

Union Calls for Shutdown of the P-31, 33, and 35 Floating Production Facilities offshore Brazil.

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Julia Gillard

Martin Ferguson is likely to retain his post as Minister for Resources and Energy.  We trust that he will now release the Montara Inquiry Report as promised.  When has a politician ever broken a promise?  Never happens in this country 🙂

Upstream Article on Australia’s minority government.

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Diamond Offshore Workers Receiving SAFE Award Recognition

On Labor Day 2010, BOE is proud to salute the thousands of dedicated offshore professionals, in the US and around the world, who work in remote locations under challenging conditions to provide energy for our economy and our way of life. Regardless of one’s opinion about oil and gas operations, wind projects, and other sources of offshore energy, we should all appreciate the important contributions made by offshore workers.

While investigations and enforcement actions are necessary, positive recognition is even more important, especially at times like these.  The overwhelming majority of offshore workers do their jobs conscientiously and carefully, and make every effort to protect their colleagues and the environment.  It is these workers who are most at risk when an accident occurs, not those of us who are sitting behind a desk philosophizing and pontificating. Their lives and the lives of their friends and colleagues are threatened when accidents occur, their “back yard” is polluted when oil is spilled, and their jobs are at stake if offshore exploration and development are curtailed.

Fortunately for us, energy exploration and production doesn’t stop on holidays. Whether they are working or enjoying the day with their friends and families, BOE wants offshore workers to know that we appreciate their important contributions.  Happy Labor Day!

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Interesting Upstream article.

A leading member of Greenland’s ruling Inuit Ataqatigiit (Inuit Brotherhood) party has slammed Greenpeace’s actions to hamper drilling in Baffin Bay, saying the party will not quietly accept the environmental group’s “know-it-all” attitude towards exploration off Greenland.

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Upstream Report

Isolated rig move or predicted trend?

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Some readers have suggested links and information on the official US investigations of the Macondo blowout.  Some basic information is provided below.  The links will be added to the blogroll in the right column.

We will be examining the relevant facts and circumstances concerning the root causes of the Deepwater Horizon explosion and developing options to guard against, and mitigate the impact of, any oil spills associated with offshore drilling in the future.  This may include recommending improvements to federal laws, regulations, and industry practices.

Joint BOMRE – Coast Guard Investigation

The purpose of this joint investigation is to develop conclusions and recommendations as they relate to the Deepwater Horizon Mobile Offshore Drilling Unit (MODU) explosion and loss of life on April 20, 2010. The facts collected at this hearing, along with the lead investigators’ conclusions and recommendations will be forwarded to Coast Guard Headquarters and Minerals Management Service (MMS) for approval. Once approved, the final investigative report will be made available to the public and the media. No analysis or conclusions will be presented during the hearing.

This study will address the performance of technologies and practices involved in the probable causes of the Macondo well blowout and explosion on the Deepwater Horizon. It will also identify and recommend available technology, industry best practices, best available standards, and other measures in use around the world in deepwater exploratory drilling and well completion to avoid future occurrence of such events.

The CSB intends to proceed with an investigation of the root causes of the accidental chemical release that destroyed the Deepwater Horizon rig and took the lives of 11 workers. The investigation will include the key investigators who were involved in the CSB’s 2005-2007 investigation of the March 23, 2005, explosion at the BP Texas City refinery.

Various congressional committees are also reviewing issues associated with the blowout, most notably the Senate Committee on Energy and Natural Resources and the House Committee on Energy and Commerce.  As time permits, BOE will post updates on post-Macondo legislative actions.

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Gro Brækken

The function-based regulations in Norway allow for continuous development, while at the same time, the operatingcompanies have a very clear and specific responsibility. This means extra quality control in all operations. I have no doubt that this contributes to the high level of safety. Gro Brækken, Director General of the Norwegian Oil Industry Association

This is an important report for BOE’s regulatory philosophers and those who are involved in one of the post-Macondo reviews.  The description of the US regime is not entirely accurate, but this comparison is nonetheless very useful.

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Gillard quotes Bill Clinton: “The people have spoken but it is going to take a little while to determine exactly what they have said.”

From the rather narrow BOE perspective, post-election uncertainty will likely delay the release of the Montara report even more.  Not good.

Election blog

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