New IIED report proposes a shift in oil industry culture to avoid another Deepwater Horizon tragedy
One year on from the Deepwater Horizon explosion and oil spill, the International Institute for Environment and Development (IIED) has released a report that explores how the growing risks associated with the oil and gas industry can be reduced with more effective management of the industry’s complex chains of contractors.
Shared Value, Shared Responsibility draws on three years of research and interviews within the sector and outlines seven key areas for action relating to the industry’s systems, procedures and – importantly – its culture. It highlights the key challenge of maintaining high environmental and social performance standards, even when speed and low cost of delivery are priorities.
Risks in the sector are increasing as the industry moves into ever more sensitive environments - deep waters, the Arctic, the Amazon and Congo basins. These bring ever greater technological, political and social risks. Risks multiply in less developed countries where corruption may be endemic and governance weak. Governments may also require projects to use local companies that are less familiar with international standards and practices.
Furthermore, oil and gas exploration involves an increasingly complex chain of contractors and subcontractors. Major oil and gas companies are now contracting out on average 75% of activities to specialised service providers as a way to increase efficiency and outsource risk.
Failure to manage these risks adequately increases the industry’s vulnerability to catastrophic accidents. Shared value, shared responsibility identifies three broad sets of factors that hamper effective chain-wide performance:
The report proposes a range of actions, including:
Shared Value, Shared Responsibility can be downloaded free from IIED’s website:
– Click here for the full 50-page report with figures, references and case studies
– For hard copies of the report or briefing please email email@example.com.
See the authors’ blog posts:
– Emma Wilson’s blog post on IIED’s Due South blog
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