Safety regulations, firm size, and the risk of accidents in E&P operations on the Gulf of Mexico outer continental shelf
- LSU Center for Energy Studies, Baton Rouge, LA (United States)
The current expanded role of smaller independent oil producers in the OCS has led to concern about the possibility of increased risk of accidents in E&P operations on the Gulf of Mexico OCS. In addition, questions have been posed concerning the effects of the Minerals Management Service`s (MMS) safety regulations and inspection program, firm size, and industry practices on the risk of accidents in E&P operations on the Gulf of Mexico OCS. The specific purposes of the study reported in this paper were to ascertain (1) whether any empirical justification exists for the widespread concern that an increase in independents relative share of E&P operations in the Gulf OCS region will be detrimental to safety, and (2) whether MMS policies and safety programs have reduced the frequency or severity of accidents on the OCS. Our statistical and descriptive analyses of data on accidents from MMS provide no statistical evidence to support the apprehension that an expanded role for independents in E&P activity constitutes any major threat to safety on the OCS. Further, the results of our econometrics analysis confirm the expectation that the more effective MMS inspectors are at detecting incidents of noncompliance the lower the rate of accidents on the OCS is, ceteris paribus. In addition the results indicate that the variability in platform exposure years--cumulative age of operating platform--in comparison to other factors explains a significant portion of the variation in accidents per operating platform. That is, the platform aging process provides more opportunity for accidents than any other contributing factors. Our econometrics analysis also suggests that, if the other factors contributing to offshore accidents are held constant, the responsiveness of accident rate to drilling activity is inelastic while the response of accident rate to production activity levels is elastic.
- OSTI ID:
- 414746
- Report Number(s):
- CONF-960623-; TRN: 96:004555-0048
- Resource Relation:
- Conference: International conference on health, safety and environment in oil and gas exploration products, New Orleans, LA (United States), 9 Jun - 12 Sep 1996; Other Information: PBD: 1996; Related Information: Is Part Of The third international conference on health, safety & environment in oil and gas exploration and production. Proceedings - Volume 2; PB: 934 p.
- Country of Publication:
- United States
- Language:
- English
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