Business Blockbuster - Helpng business to be more visible on Google

Daily Bulletin

Drilling in the Bight: has BP learnt the right lessons from its Gulf of Mexico blowout?

  • Written by: Andrew Hopkins, Emeritus Professor of Sociology, Australian National University

The Guardian newspaper recently hit a wall of non-response when it raised concerns about the possibility of an oil well blowout in BP’s proposed drilling operations in the Great Australian Bight.

The facts are that bolts on drilling rigs used in other parts of the world have been found to be defective, with the potential to fail catastrophically. When asked whether its operations were at similar risk, BP referred The Guardian to its subcontractor, Diamond Offshore, which reportedly failed to respond to emails and phone calls.

Whether or not these technical concerns are justified, this is a public relations disaster for BP, Diamond Offshore and even for the Australian industry regulator, the National Offshore Petroleum Safety and Environmental Management Authority.

BP, in particular, can ill afford such bad publicity. Six years ago it suffered a disastrous blowout of its Macondo well in the Gulf of Mexico, which killed 11 men and caused more than US$40 billion of environmental damage along the US coast.

It’s perfectly understandable that people will ask whether the same thing can happen in the Great Australian Bight.

Lessons learnt?

BP claims to have learnt the lessons from the Gulf of Mexico incident, and to have incorporated them in its drilling plan for the Bight (as outlined in section 6 of its environmental overview). However, the lessons it refers to are drawn from its own report on the accident, which dealt primarily with technical issues rather than the underpinning organisational factors.

Other major reports and commentary have identified a range of organisational failures that contributed to the blowout. BP has not shown that it has learnt these bigger lessons.

One of these organisational causes was the system of bonus payments made to employees at all levels, which created continual pressure to minimise costs and maximise drilling speeds. A key performance indicator when calculating employee bonuses was “days per 10,000 feet of well drilled”.

These incentives generated pressure to ignore anomalies or warnings that things might be amiss, and to just get on with the job. Of course, BP is not alone in this – these are industry-wide practices. But to satisfy a sceptical public, BP needs to show that it has addressed this issue.

Second, BP was using the wrong indicators of risk, which meant that it was systematically misleading itself and others about the risk of blowout at the Macondo well.

Its primary indicator was the number of cases of “loss of containment” – that is, incidents when oil was spilled into the sea from a hydraulic hose or other piece of equipment. Of course these spills are environmentally undesirable, but the number of these relatively minor incidents does not in itself indicate a risk that the well will blow.

Far more significant is the number of “kicks” – incidents in which operators temporarily lose control of the well and high-pressure fluids begin forcing their way towards the surface. If operators do not act quickly to control kicks, they can develop into blowouts, and indeed this was one of the contributing factors in the Gulf of Mexico blowout.

Here is another relevant indicator. Drilling wells involves pumping cement down at various times to seal joints, and to plug the bottom of the well when drilling is complete but the well is yet to begin production. Cementing jobs sometimes fail, and in fact the regulator in the Gulf of Mexico found that half of all blowouts were initiated by a cementing failure.

The number of cementing failures would therefore seem to be an important indicator of risk. BP again needs to show it has developed a list of key risk indicators for its proposed drilling operations in the Bight, and that things such as employee bonuses will not work to counteract this system.

Bending the rules

One of the most insidious processes that contributes to many major accidents is the “normalisation” of substandard practices. Typically, this happens when people start taking shortcuts with no penalty, which gives the impression that strict compliance with safety regulations or standard engineering practices is unnecessary. Eventually, however, an unusual set of circumstances may catch them out.

Some companies have a formal process for authorising deviations from the standard practice, in cases where strict compliance seems unnecessary or onerous. In isolation, such deviations may seem to involve a negligible increase in risk, but if the number of such authorisations is not controlled, the cumulative increase in risk may be considerable.

After the Gulf of Mexico disaster, BP itself proposed that the number of authorised deviations from approved engineering practices be treated as an indicator of risk, and that this number should be kept as low as possible. It would be good to know if this principle will be applied to its drilling activities in the Bight.

Another critical lesson from the Gulf of Mexico spill is that senior managers should ask the right questions when they visit operational sites, as they routinely do. Senior managers were actually touring the rig that was drilling the Macondo well at the time of the blowout. But they failed to ask any questions about how well the rig was controlling the blowout risk. Had they done so, the accident might never have happened. Has BP learnt that lesson? It is not one that was identified in its own report, so we cannot be sure.

Accident prevention depends on understanding and counteracting the human and organisational factors that lead to accidents, as well as the technical ones. The documents that BP has publicly released about how it intends to drill in the Bight describe how it has learnt the technical lessons, but are silent on the human and organisational lessons.

Spelling out these lessons, and whether BP really has learnt them, might give the public more confidence in the drilling proposal.

Andrew Hopkins is the author of Disastrous Decisions: The Human and Organisational Causes of the Gulf of Mexico Blowout_.

Authors: Andrew Hopkins, Emeritus Professor of Sociology, Australian National University

Read more http://theconversation.com/drilling-in-the-bight-has-bp-learnt-the-right-lessons-from-its-gulf-of-mexico-blowout-65471

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Cybersecurity Services and Solutions for Complete Digital Protection

Businesses leverage Cybersecurity solutions for protection against digital threats of the modern era...

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...