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Upstream was in attendance at today’s Arctic Oil & Gas Conference in Oslo and posted an interesting report. At the conference, Cairn Energy’s Engineering and Operations Director Phil Tracy wisely avoided the “can’t happen here, can’t happen again, can’t happen to me” traps.  Instead, he correctly noted that:

An uninformed public are looking for guarantees we cannot give.

Kudos to Mr. Tracy.  We are not politicians, and must be open and honest with the public.  Yes, a disaster can happen again, but we will do everything possible to prevent it.  While the professional opposition and their political leadership will never be satisfied, the public at large appreciates candid and honest responses.

I was personally required to give a point by point by point submission (covering HSE) to the Greenlandic authorities. Phil Tracy

I have to give high marks to Greenland.  They resisted the cry to prohibit drilling, but challenged the operator and insisted on a top-notch operation.  Well done!

 

Cairn operation offshore Greenland. Greenpeace provides moral support.

 

Peoples attitudes and opinions have been formed over decades of life and cannot be changed by having a few meetings or giving a few lectures. Mao Tse Tung (from Mark Fleming’s presentation linked below)

Sometimes presentations don’t fulfill the lofty expectations of the audience, particularly when the titles are catchy.  That definitely was not the case with Dr. Mark Fleming’s outstanding presentation at the Vancouver conference.  Mark’s presentation entitled Know where you are going rather than where you have been! A Leaders’ guide to continuous safety performance measurement effectively drove home the safety culture message.  I strongly suggest that you take a close look at the presentation (not yet posted, but I’ll provide a link as soon as it is).

In the meantime, you can look at this excellent paper that Mark prepared for Petroleum Research Atlantic Canada and a presentation he made at the Centre for Occupational Health/Safety. Good, thought provoking stuff for you safety gurus!

 

from Dr. Fleming's presentation linked above

 

You have to love “New ideas present problems” from the Bureaucratic column.  So true.  It’s not that new ideas are not welcome, it’s that bureaucracies (public and private) are incapable of dealing with them and are built with insurmountable barriers that prevent their consideration.

Viewed in Vancouver

Jan de Jong (Inspector General, State Supervision of Mines, the Netherlands), Max Ruelokke (CEO, Canada - Newfoundland and Labrador Offshore Petroleum Board), and Odd Finnestad (BOE Executive VP for International Programs and IRF Historian)

They re-lit the Olympic Torch in our honor. Well, not exactly. The torch was lit for a ceremony naming the plaza after Jack Poole, a driving force in bringing the Olympics to Vancouver. Sadly, Jack died of cancer a few months before the games opened.

While we are awaiting the official pictures of the Vancouver conference, you can look at some of Karen’s by clicking here.

Vancouver is a great city and the weather was pretty close to perfect.  I like walkable cities with interesting neighborhoods, and Vancouver ranks near the tops.  If you get a chance, check it out.

1. BP CEO Bob Dudley pokes media, politicians and oil industry:

A great rush to judgment by a fair number of observers before the full facts could possibly be known, even from some in our industry.

Comment: Bob Dudley is correct, but the attacks and distortions were entirely predictable.  Human responses to high-profile disasters will always be excessive, and you won’t have a lot of friends when you are a public target. Add this negative outcome to the list of more important reasons for avoiding offshore disasters – protecting workers, preventing pollution, and preserving assets.

2. PTT and Indonesia continue to battle over Montara damages.

Comment: This will be a long and interesting international battle.  I wonder if PTT has any assets in Indonesia?  I can’t really tell from their website.

Bad News from Burma

Odd Finnestad alerted me to this tragic incident reported in the Bangkok Post:

At least 14 people have been killed and 58 more injured in a fire at an oil well in central Burma, an official in the military-ruled country said Monday.

Will we ever learn the details?

Firstly, major kudos to the Canadians for organizing a great conference in Vancouver, a wonderful city.  The Newfoundland-Labrador and Nova Scotia Petroleum Boards, and the National Energy Board were outstanding hosts, and Max, Howard, Stuart, Sean, Bharat, and the folks at Venue West did a great job with the arrangements. The International Regulators’ Offshore Safety Conference was a huge success thanks to their efforts.

The international leaders in Vancouver were in full agreement that the key to long term safety achievement is the strength and vitality of the safety culture in the operating companies, contractors, and regulatory organizations.  How is such a culture encouraged and achieved?  As NOPSA CEO Jane Cutler has said “safety culture is what you do when no one is watching.”  Inspections are a necessary regulatory tool, but if they are too frequent they send the message that the government is responsible for safety, and that operators and workers can relax their guard.  As Magne Ognedal (PSA-Norway) has frequently said, safety must be managed by the “owner” of the facility and the risk, with the government holding the owner accountable and insisting on excellence.

Steve Walker, UK HSE chief, said that regulators must encourage a “beyond compliance” culture and serve as catalysts for learning and achievement. Regulators can never be satisfied; they should be negative thinkers searching for the operations, processes, and behaviors that might trigger the next major accident.  Dr. Mark Fleming from St. Mary’s University in Halifax believes that safety culture can in fact be regulated, not in the traditional sense, but by requiring companies to have systems in place for promoting and measuring the organizational culture.

Regulators must also look at their own safety culture.  Are they focused solely on compliance and “command and control,” or are they investigating risks, assessing management programs, and evaluating performance?  Are regulatory employees free to investigate and inquire, or are they mere implementers of management directives?  Are employees rewarded for sustaining the hierarchy or challenging  the status quo?  Are they expected to explain why accidents can’t happen again or figure out how they can?

Much more on these and other Vancouver topics in the near future.

In case you haven’t seen this video from the Atwood Eagle offshore Australia.

Helicopter Crash

From the Fresno Bee (18 Oct).  Click on visual to enlarge:

 

Posting will be suspended (hold the applause :)) while our large international staff attends the IRF Safety Conference and engages in deep thought and meditation. After this period of reflection and renewal, BOE’s revitalized staff will resume posting (on or about 25 October).

Kudos to the overwhelming majority of offshore energy sector employees for their unwavering commitment to safety achievement and pollution prevention.

Now that Chile, with the help of the international community (including two companies from the Commonwealth of Pennsylvania where the drilling industry began), has rescued the 33 miners, can we drill into the Australian government and rescue the Montara and Varanus Island reports?

While we are at it, can we learn more about these accidents?

Let’s learn from past accidents, so we don’t need dramatic rescues in the future.

The offshore safety record will be suspect until industry and governments have credible, internationally accepted programs and policies for ensuring that accidents are independently investigated and that investigation updates and reports are released in a timely manner.