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Posts Tagged ‘safety’

…. and gleeful. 

“Is there likely to be litigation over new drilling permits? You bet there is,” said David Petit, a senior attorney with the Natural Resources Defense Council.

“We’ll definitely litigate it,” Kieran Suckling, executive director of the Center for Biological Diversity, said of the federal approval of Shell’s plan. “It’s patently illegal.”

Environmental Suits Threaten Gulf Drilling- Wall Street Journal

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Congratulations to the many dedicated professionals who contribute to the success of this important conference.   OTC-logo-blue-black---clear.gif

Attendance at the 2011 Offshore Technology Conference (OTC) reached a 29-year high of 78,150, up 8% from last year, as offshore energy industry experts from around the world came together at the world’s largest event for offshore resources development. OTC was held 2-5 May at Reliant Park in Houston.

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Surprisingly, the post-Macondo discussion about regulatory approaches has been largely devoid of value and cost-benefit assessments. While PSA has been praised for Norway’s outstanding offshore safety record, little attention has been paid to their relatively low regulatory costs.

According to data in the 2010 Annual Report, PSA has 161 employees, and had total operating expenses of NOK 202,762,689  ($US 38.1 million) for 2010. These modest cost and staffing numbers are particularly impressive when the magnitude and complexity of Norwegian offshore operations are considered. In March 2011, Norwegian oil production averaged 2.017 million barrels per day (no. 2 offshore oil producer slightly behind Brazil) and gas production averaged 11.6 billion cubic feet per day (world offshore leader). PSA is also responsible for onshore processing facilities.

PSA’s costs are relatively modest for the same reason that their regulatory program is successful. They hold companies responsible for managing their operations and conducting inspections. They don’t approve every detail of every operation, but focus on ensuring that the company management systems are effectively implemented.  They identify risks and insist that industry address them. As Magne Ognedal said in his interview with BOE: 

Our regulatory philosophy is indeed firmly based on the legislated expectation that those who conduct petroleum activities are responsible for complying with the requirements of our acts and regulations. Furthermore, our regulations require that they employ a management system that systematically probes and ensures such compliance at any time.  The approach to achieving this should be risk-based.  So, ensuring compliance with rules and regulations is the operator’s job – not ours.

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From the Houston Chronicle:

“I didn’t have a lot of set ideas about how things should work in the energy industry,” Jahnke said. “So I thought ‘Why can’t we try a curved blade?’ like the curved hook on a Swiss Army Knife can opener.”

Since January, T-3 has been testing Jahnke’s design, slicing through just about every size of drill pipe and casing used in the Gulf.

National Oilwell Varco is showing customers its new shear rams — a pair of trident-like blades that puncture a drill pipe before cutting it to shreds. The ShearMax Low Force Casing Shear Rams are aimed at cutting through tool joints – the thickest section of a drill pipe where it screws into another section of pipe.

GE Oil & Gas’ Hydril line of blowout preventers include a hardware and software system that allows an operator to know exactly how far shear rams close within the blowout preventer.

Another new Hydril product captures the natural pressure thousands of feet underwater to help activate a shear ram.

Weatherford International has touted its new “closed-loop” drilling system, which allows for better monitoring for gas as mud comes back from a well during drilling.

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PTTEP Exploration Plan

PTTEPAA, through its responsible and proactive response to the Incident has shown its commitment to responsible environmental management.

Comment: Those who read the Montara submissions and closely followed the official inquiry are likely to question this conclusion. Perhaps PTTEP should have emphasized the lessons learned and their commitment to better performance in the future.


					

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AP report:

“The Deepwater Horizon BOP was unreasonably dangerous, and has caused and continues to cause harm, loss, injuries, and damages to BP (and others) stemming from the blowout of Macondo well, the resulting explosion and fire onboard the Deepwater Horizon, the efforts to regain control of the Macondo well, and the oil spill that ensued before control of the Macondo well could be regained,” BP said in the suit.

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Congratulations to Bristow for winning the 2011 National Ocean Industries Association (NOIA) Safety-in-Seas Award. Bristow, a helicopter company, was recognized for its “Target Zero” program.

I was honored to serve as one of the judges, and Bristow is a most deserving recipient of this prestigious award. To the best of my knowledge, the Safety-in-Seas program, which began in 1978, is the oldest safety award program for offshore oil and gas operations.

I would also like to congratulate the other Safety-in-Seas nominees. All of the nominations were outstanding. While we must learn from accidents and failures, we can also learn from successes. The achievements of outstanding companies and safety leaders deserve attention and recognition.

KATC.com provides more information on Bristow’s selection:

“Target Zero” is a comprehensive cultural and training system that seeks to achieve zero accidents, zero harm to people and zero harm to the environment across Bristow’s operations. Building on statistical data that indicated human error contributed to 4 out of 5 accidents or incidents, Bristow’s “Target Zero” has reduced the rate of air accidents in for example the Gulf of Mexico from 2 reportable air accidents and one air incident in 2007 to zero accidents or incidents, with similar results in subsequent years. Bristow has achieved a 47% improvement year on year in Lost Work-time Cases, with overall improvement from 2007 – 2009 of 88%. When it comes to the environment, Bristow’s “Target Zero has maintained a record of zero environmental incidents and has stepped up pro-active efforts to ensure this stays constant. 

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Proposal: Let’s make April 20th International Offshore Safety Day to honor those who have been killed or injured, to recognize the many workers who provide energy for our economies and way of life, and to encourage safety leadership by all offshore operators, contractors, and service companies.

Discussion: April 20th is, of course, the anniversary of the Macondo tragedy in the Gulf of Mexico. Eleven men died on the Deepwater Horizon that day. Many other offshore workers have died or been injured exploring for and producing offshore energy.  167 workers were killed when Piper Alpha exploded in 1988, 84 died when the Ocean Ranger sank in 1982, 123 perished when the Alexander Kielland capsized in 1980, 17 died in a helicopter crash off Newfoundland in 2009, 11 died when the Petrobras 36 sank in the Roncador field in 2001, and many others have been killed working offshore. Some of these accidents, like last summer’s fatality on the Jack Ryan offshore Nigeria, receive no public notice. Others like the fall in the Gulf on Monday or the recent diver fatality in the North Sea receive just a brief mention.

In addition to honoring those killed or injured, Offshore Safety Day would draw attention to the importance of offshore workers, their dedication and commitment, progress that is being made in addressing offshore safety risks, and the outstanding safety management efforts of leading companies around the world.  It’s time for a day to honor offshore workers!

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Jupiter Flotel

….interest in offshore accidents quickly diminishes.  The Pemex Jupiter semisubmersible quarters facility sank last week with 713 workers aboard (fortunately all were safely evacuated). This stunning near-disaster received minimal coverage. Follow-up reports are non-existent.  As our friend JL Daeschler asked, how does a flotel capsize in calm conditions and shallow water? What went wrong and why? Let’s hope that a comprehensive investigation is conducted and that the findings are shared worldwide (unlike Venezuela’s handling of the Aban Pearl sinking).

As we have noted before, Macondo would have disappeared from the news within a week if the deadly fire and explosion had not been followed by a sustained oil spill. The only investigation would have been by Coast Guard and the Minerals Management Service (which would likely still exist). There would have been no National Commission, National Academy, Chemical Safety Board, or congressional investigations, and prosecution by the Justice Department would have been unlikely.

In the US, offshore spills are media events; other accidents are not. How much attention did the horrific fire and explosion that killed seven workers on the South Pass 60 B Platform receive in 1989? Virtually none. How about the lives lost in helicopter crashes? While the crash that killed 17 off Newfoundland in 2009 has been well studied and reported, offshore helicopter crashes in the US receive almost no attention. Ditto for crane accidents. If we want to build a proper safety culture, we need to pay as much attention to the low-profile accidents as we do the pollution spectaculars, and everyone needs to participate.

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  • Require that a Central Gulf of Mexico (GoM) oil and gas lease sale be held within 4 months of enactment, and that a second sale for that area be held within 12 months.
  • Require that a Western GoM sale be held within 8 months of enactment.
  • Stipulate that prior environmental reviews would satisfy NEPA requirements for the GoM sales.
  • Require that a Virginia offshore sale be conducted within 1 year of enactment. [Comment: While I support a sale offshore Virginia, I do not believe this can be accomplished in one year.]

HR 1231 would:

  • Require that specified volumes of oil and gas (per estimates made by MMS in 2006) be made available for leasing.
  • Set offshore production goals.
  • Give credits (for use in paying lease bonuses) to companies for costs associated with pre-sale seismic surveys.   [Comment:  If the legislation provides reasonable assurance that lease sales will be held, why are the seismic survey credits needed? The seismic data will have a high commercial value. Collection of these data should not have to be subsidized by the Federal government.]

HR 1229 would:

  • Require that DOI act on drilling applications within 60 days.
  • Extend the term leases where the approval of drilling applications was delayed following the Macondo blowout.
  • Make the 5th Circuit Court the venue for any civil actions involving GoM energy projects.
  • [Comment: The important question is not the number of days that the regulator should be given to review applications, but whether a complex permit review and approval process is the optimal regulatory approach. A lesson learned from virtually every major accident, from Santa Barbara through the Ocean Ranger, Alexander Kielland, Piper Alpha, and Macondo, is that command and control regulation is not in the best interest of offshore safety. Industry should not rely on government to manage its operations and government should focus on safety achievement, not directing the day-to-day activities of offshore companies. Over the long-term, the US would be better served if regulatory resources were dedicated to risk assessment, data analysis, assessment of operator and contractor management systems, targeted inspections and audits, participation in standards development and research, and safety leadership.]

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