Whenever I am asked about whether the current downturn has an impact on how the industry manages its risks, I recognise that behind that question there may be concerns that standards could slip amid the drop in oil prices, the drive to reduce operational costs and news about job losses.
I understand why for some there may be a sense of uneasiness, especially when you consider that ours is a major hazard industry. However, the fact is that our sector continually experiences peaks and troughs in its economic cycles. No matter where it is in the economic cycle, safe operations remain a core value regardless of the oil price.
When you think about it, it makes no business sense at all to cut corners with safety. If safety is compromised and people are at risk, so too are the economics of our operations. Regardless of the oil price, safe operations and vigilant management of risk must remain at the heart of all that we do.
Many measures are in place to ensure risks are managed effectively including strong safety leadership, inherently safe design, safe systems of work, and a competent workforce. The UK legal framework is regarded as world-class with a strong regulatory regime and our industry is continually making efforts to produce industry guidance and look for opportunities to share and learn.
Based on the evidence in our 2015 Health and Safety Report, these measures are proving effective in helping the industry manage risks to prevent accidents. Personal safety performance across oil and gas operations on the UK Continental Shelf (UKCS) continued to improve in 2015. Latest H&S statistics show that in 2015 there were no fatal incidents offshore in the UK and the non-fatal injury rate remains lower than that of other industrial sectors including manufacturing and construction.
The annual Oil & Gas UK benchmarking exercise, that analyses 28 production operators and provides an overview of operator safety performance, revealed a continuing downward trend in the frequency of reportable injuries and dangerous occurrences, with 2015 showing the lowest numbers since analysis began in 2006.
This picture of improvement comes at a time when the industry is driving greater efficiencies to lower its costs and reverse declining production levels. Production efficiency has improved and the reduction in operating expenditure in no way compromises the commitment to safe operations which is intrinsic to our industry.
Oil & Gas UK works with its members to promote improvements in major accident hazard management and operational efficiency on offshore oil and gas installations. A recent example of this work is Oil & Gas UK’s publication “Maintenance Optimisation Reviews: Sharing Experience and Learning” which outlines how operators can optimise maintenance reviews to deliver safe, reliable and sustainable operations and contribute to tackling the backlog in safety critical maintenance.
Oil & Gas UK will monitor uptake of the document and the ongoing effectiveness of efforts in this area, using key performance indicators to track progress in reducing the maintenance backlog. This approach vividly demonstrates the industry’s commitment to evolving risk management because the process is one of continuous improvement to protect personal and process safety, whatever the prevailing economic climate.
Mick Borwell is Oil & Gas UK’s HSE policy director.
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