Table of Contents

Vol. 6, No. 4
4th Quarter 2000


Attention: Active Onshore Drillers-Safety Improvements Needed

Independents drill the majority of onshore wells. Accident statistics don't lie-big improvements in safety are needed and poor safety practices cost both the drilling contractor and producer. 


Increased emphasis on safety management in the oil and gas industry has led to improvement over the last decade. Regulatory oversight by government entities such as the MMS has provided some of the impetus for change. Operators, drilling contractors, and service companies have worked diligently internally and within industry groups to identify common hazards and failures. These efforts have reduced the number and severity of injuries.

 

Benefits of safety management can be found within the Halliburton Energy Services Performance Improvement Initiative (PII). The three focal points of PII are Health and Safety, Environment and Service Quality. Launched in 1997, PII has resulted in an injury rate decline of nearly fifty-percent.


Although the US oil and gas injury rate trends are down, there is a disparity between offshore and onshore safety. Statistics gathered by the International Association of Drilling Contractors (IADC) between 1998 and June 2000, indicate the injury rate is between 2 to 4 times higher onshore than offshore (Figure 1). This increased rate may result in higher operating costs from injury-related expenses.

 

 

 

Figure 1


The National Safety Council estimates that a disabling injury costs $28,000. At a five percent profit margin, $560,000 in sales are needed to cover the injury. Economics, worker morale and productivity are drivers for safety improvements.


There are basic standards that have helped make the location safer. Requiring personnel to wear basic protective gear, safety glasses, hard hats, coveralls, steel-toed shoes. Establishing minimum expectations for safety training such as Hazard Communication, Lockout/Tagout, rigging/crane operation, and mentoring. Insisting that hazardous behavior or conditions and near misses be reported. Resolving scheduling conflicts so that hazardous road conditions and driver fatigue can be avoided. Holding pre-job/task safety meetings and building locations with safety in mind.

 

The following industry workgroups can also be of assistance by providing forums for the exchange of ideas, and offering tools to facilitate improvement. The IPAA (http://www.ipaa.org/this_is_ipaa/committees.htm#environment), Global Drilling Safety Leadership Initiative  (http://www.iadc.org/globalsafety/global/gdslt_global_inits.htm), Step Change for Safety (http://www.oil-gas-safety.org.uk/), and Oil and Gas Producers (http://www.ogp.org.uk/committees/shapcc/index.html).


(Courtesy of Tom Knode, Halliburton Energy Services; gist of presentation by Jim Renfro at recent IPAA meeting in San Antonio, Tex).


Spotlight on the Energy Council

Organized in 1975, legislators from five states created the Southwest Regional Energy Council. Since then, the Energy Council has grown to 10 member states plus two international affiliates, Canada and Venezuela. The Energy Council is a legislative organization which provides a forum for addressing governmental policies regarding energy and the environment. Although formed to keep state legislators informed on critical energy issues, key speakers at meetings often provide strategic insights on emerging technologies/applications. A quick look at meeting titles reveals that technology/business insights as well as governmental trends can be gleaned by following their meetings.

 
-- Federal Energy and Environmental Matters Conference, March 11-13, Washington, DC. In this meeting, Bill Whitsitt, President of the Domestic Petroleum Council, discussed the future of U.S. independents. Sound relevant?


-- State Trends in Energy and the Environment Conference, June 22-25, Oklahoma City, Okla. A breakfast panel focused on streamlining reporting regulations for environmental quality. Of interest to you?


--2000 Global Energy and Environmental Issues, Keystone Colo., Dec. 7-10. Among other things, the Council will consider its completed National Energy Strategy proposal, a proposal developed through five workshops held during 1999 and 2000. Do we need a National Energy Strategy?


The Honorable Matt Smith, from the Colorado House of Representatives, currently chairs the Energy Council and Ms. Lori Cameron is Executive Director, guiding staff activities from the Energy Council's headquarters in Dallas. The Energy Council publishes an informative quarterly newsletter.

 
To receive the Energy Council's quarterly newsletter or notice of future meetings, contact the Energy Council (phone 972-243-7788, email energycouncil@onramp.net).


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