HEAVY IRON NEWS
Backlash Against A New Well Control Regulation
Design Team • December 29, 2015
The U.S. Bureau of Safety and Environmental Enforcement agency has proposed new well control regulations, which have not been well-received by experts from the U.S. oil and gas industry, including the American Petroleum Institute. The American Petroleum Institute believes that the " mutually desired objective of safety " between the U.S. government and U.S. oil and gas industry companies is enough to maintain safety without additional costly and unnecessary regulations.
THE NEW WELL CONTROL RULE PROPOSED BY BSEE
BSEE's Well Control Rule was proposed initially as a response to the 2010 accident with the Deepwater Horizon. Ostensibly, the rule was designed to improve safety, but experts believe that it could instead prove to be a blockade against innovation and technological advancements. The rule focuses on safety measures that will need to be installed at well sites, focusing on blowout preventer equipment. It substantially increases the amount of inspections, reviews, and monitoring that would need to occur at well sites. This includes a variety of third-party reviews that would have to be completed for the well site to remain in compliance.
POTENTIAL HINDRANCES TO THE OIL AND GAS INDUSTRY
New well control regulations have been designed as a "one size fits all" solution, and they require a substantial investment of both time and money in an already struggling industry. Moreover, they may not even be effective. Industry experts have pointed out that well sites are all unique; there are varying sizes, technologies, and protocols. The new well control regulations would force all wells to adhere to strict regulatory standards that may or may not apply to them. Not only would this be detrimental to the oil and gas companies, but it would not provide for any useful improvement in safety or protocols; the regulations being followed simply wouldn't necessarily apply. The American Petroleum Institute, alongside drilling and oil and gas associations, is asking for a more appropriate method of determining regulations that could be applied more effectively.
THE AMERICAN OFFSHORE ENERGY INDUSTRY SPEAKS OUT
The President of the American Offshore Energy Industry has also pointed out difficulties with these regulations, suggesting that it behooves the government, environmental organizations, and the oil and gas industry to acquire expert information regarding regulatory standards before enacting sweeping protocols. Better safety protocols for offshore energy operations can be achieved, it is suggested, by consulting with panels of experts and discussing the major risks that have to be managed. Otherwise, these regulations may not appropriately grasp the issues that offshore drillers encounter.
Well Control Rule has been under fire by industry experts and associations since it was first proposed in April of 2015. It is hoped by industry experts that the government will agree to consult with representatives of the oil and gas industry to create a better and more effective set of regulations. While the oil and gas industry does not deny that safety is incredibly important, it also believes that these regulations and protocols should be developed by those who are familiar with the industry.
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