Big oil company executives are developing an industry-led, deep-water drilling safety body that could launch within weeks.
As reported by the Financial Times, the plan by the industry heavyweights comes in response to a recent recommendation in the final report of the presidential panel on the Deepwater Horizon disaster in the Gulf of Mexico.
The report fingered a lack of resources at the Minerals Management Service, the federal regulator for offshore drilling, as a major factor contributing to the April explosion and the subsequent spill, the worst in U.S. history. The industry safety group, modeled after one in the nuclear power industry, is seen by both safety advocates and oil executives as a way to shore up safety oversight and offset the shortcomings of the MMS.
The oil executives also are working on their plan — which would complement, rather than replace, government oversight — with the aim of restoring confidence in the industry’s ability to drill safely offshore.
However, a debate is swirling over whether the new organization would be a part of the American Petroleum Institute, which serves as both a major industry lobbyist as well as a technical body charged with establishing standards across the industry.
Some officials worry that this would create an overly cozy relationship between the drilling safety overseers and profit-minded oil companies.
“The new safety body has to be a different institution with a different staff, a different name and a different physical location from the API,” William Reilly, one of the two co-chairs of the presidential commission, told the Financial Times.
API officials, in contrast, expressed confidence in their ability to be effective.
“We have been doing this since 1924, and we have expertise here,” said API oil production official Erik Milito. “So it would make sense that this should be done by the API.”
Another issue is how the new safety body would work with government regulators, particularly in light of President Obama’s recent pledge to eliminate unnecessary regulations that impede growth.
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