Mayhall Fondren Blaize

Regulator makes recommendations for offshore drilling industry

Workplace injury is a risk in many professions, some more so than others. The oil and gas industry is, not surprisingly, among those with the highest rate of accidents. Some of this is due, of course, to the inherent risks of the work itself. Some of it, though, is because of failure to provide adequate training and supervision of workers and to work closely with regulators to prevent accidents.

That, at least, is what the U.S. Chemical Safety Board recently said. The board, which is responsible for investigating large industrial accidents, is currently wrapping up a lengthy investigation of the BP well disaster that resulted in the death of 11 workers and injury to others and polluted the Gulf of Mexico. Along with the investigation, the board is making safety recommendations to the industry. 

It isn’t that the oil and gas industry isn’t already well-regulated. The problem, according to the board, is that there are challenges with enforcement. One of the recommendations the board has made is for companies to get their workers more involved in addressing workplace safety concerns. Greater oversight of contractors is also needed, according to the board.

Some experts in the offshore drilling industry say that corporate governance is an area that needs to be improved to effectively address safety concerns in the industry. Corporate risk management is essential aspect of corporate governance, and it is critical for corporations in the oil and gas industry to establish effective compliance programs, both to avoid liability and to maintain their good reputation in the marketplace. Working with experienced legal counsel is critical to ensuring a corporation meets its obligations and goals in this area. 

No Comments

Leave a comment
Comment Information