The risk of another disaster like Piper Alpha will increase if maintenance slippage during the current oil and gas downturn is not prevented, a Labour MP has warned.
Frank Doran said health and safety standards fell during the mid-1980s collapse as companies were forced to cut their costs “to the bone“ and claimed this dip could be as damaging.
Recent plunging oil prices have lead to fears for the long-term future of the industry which supports thousands of jobs both offshore and in the supply chain.
Mr Doran told MPs during a parliamentary debate in Westminster Hall: “The consequences of the 1980s downturn were not just job losses.
“All projects which were in progress were stopped, the platforms which were producing oil and gas carried on producing.
“But many costs were cut to the bone. In particular areas vital to safety such as fire safety equipment deluge systems and others received little or no maintenance.
“The consequences of this approach were not immediately apparent. But on the night of 6th July 1988 they were there for the whole world to see.
“The Piper Alpha platform exploded with 167 deaths – still the most serious loss of life of any incident anywhere in the offshore oil and gas industry.
“If there is slippage in maintenance through this downturn the dangers for offshore workers will be significantly increased.”
Mr Doran also highlighted the dangerous nature of helicopter transport to and from the offshore rigs.
He said the UK sector of the North Sea had been affected by 13 helicopter related incidents in which 118 people had died, most recently four individuals 17 months ago.
He went on: “For most of the history of the North Sea oil and gas industry helicopter companies have been treated in exactly the same way as other contractors and subjected to often severe cuts in contract costs, which might suit the oil industry accountants but make no sense to companies who have to keep helicopters flying safely.
“I hope this time round the oil industry is taking a much more cautious and sensible approach and I hope the Government and the regulator will monitor very strictly the way in which health and safety standards are maintained in both sides of the industry.”
Responding to Mr Doran’s concerns, Scotland Office minister David Mundell said maintaining arrangements to protect workers and assets even in a time of low oil prices was “essential”.
He added: “I can assure you the Health and Safety Executive will continue to thoroughly inspect asset integrity issues and raise these with industry at every opportunity to ensure regulatory standards are not compromised.”
Mr Doran also spoke about the economic impact of the falling oil prices, warning there was a risk that this year’s downturn could be “on the same level of seriousness” as that of the mid-1980s.
But he insisted it was possible to take steps to mitigate the threat and added: “There are difficult times ahead but they needn’t be as damaging as the downturn in the 1980s.”
To that end he called for “focused and targeted” tax cuts in the forthcoming Budget. The supplementary charge – that was increased in 2011 – needed to be looked at in particular, he said.
North Sea oil expert Sir Ian Wood, who led a review of the industry, has also recommended this approach and timing.
Mr Mundell said the chancellor had made it clear he would take further steps at the Budget.
He went on: “I don’t think the message could be clearer.
“The Government is committed to the long-term future of the sector in the North Sea.”
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