This post introduces insights from Det Norske Veritas (http://www.dnv.com) on new governance for safety of off shore petroleum operations. DNV is a global foundation with the purpose of safeguarding life, property and the environment. DNV is the leading company for oil & gas risk assessment globally. It was founded in 1864 in Norway and currently has 9,000 employees, of which about 10% are based in North America.
DNV has published suggestions for improving off shore safety regulation in a Position Paper. They have graciously permitted us to post their full Position Paper on the DOE Operating Experience Wiki, which is publicly accessible. A link to the OE Wiki is provided in the link section on the right side menu of this blog.
Key Aspects of an Effective U.S. Offshore Safety Regime
Major accidents lead to a review and revision of current practices and regulations with the objective of avoiding similar or other major accidents in the future. This also appears to be the case after the tragic Deepwater Horizon blow-out accident and subsequent oil spill. This paper presents DNV´s view on key aspects of an effective offshore safety regime. The paper is meant as a contribution to the on-going discussion on how to improve safety and environmental protection during offshore oil and gas exploration, development and production. The paper supports and complements the recommendation for a more systematic approach to safety and environment in the U.S. Department of the Interior (DOI) report on “Increased Safety Measures for Energy Development on the Outer Continental Shelf” (May 27, 2010).
DNV believes that a step change can be achieved with respect to prevention and mitigation of major accidents through an effective and efficient safety regime for offshore energy exploration, development and production. Such a safety regime must be risk-informed, balancing the inherent risks with the benefits for society and must possess the following characteristics discussed in this paper.
- Performance-based supplemented by prescriptive regulation
- Consideration of technology, organization and people
- Clear roles and responsibilities
- Enforced identification, reduction and control of risks
- Shared performance monitoring
- Practical and economic feasibility
- Balance between risk, control and condition
DNV has world wide experience within risk management in the offshore energy and maritime industries. DNV advises regulators on offshore safety regulation as well as executing key functions on behalf of authorities and industry in order to safeguard life, property and the environment. This paper does not present the many ways in which the key aspects could be implemented within law and regulation or how they are effectively institutionalized, or which roles are best managed by governmental agencies and which by independent or private organizations. The paper does, however, highlight issues and methodologies that DNV believes regulators should take into account when promulgating new legislation.