Norway will appoint a public commission to look into the safety of the country’s offshore oil and gas industry following a recent string of accidents, the government said on Nov. 29.
As falling oil prices force companies to cut spending, unions and Norway’s Petroleum Safety Authority (PSA) have warned cost cutting could affect safety.
“There have been several serious incidents in the last year. The Petroleum Safety Authority has also raised the question of whether security is at a crossroads,” the Minister of Labor and Social Affairs, Anniken Hauglie, said in a statement.
Cost cuts and other efficiency measures must not be allowed to have a negative impact on safety, she added, echoing statements made by the PSA.
“This trend [of rising number of incidents] has to be shifted now. We really need improvements in order to avoid new accidents, new injuries...,” PSA Chief Anne Myhrvold, told an industry conference. “Safety issues need to be up in the agenda ... We need action now.”
A string of recent incidents at Statoil’s facilities has accelerated concerns, and the Norwegian oil major has started an investigation into them.
“We don’t see any evidence of anything in particular related to ongoing [efficiency] improvement efforts, but this is something we need to investigate further,” Statoil CEO Eldar Saetre said.
The risk of accidents in Norway’s oil industry rose in 2015 after reaching record lows in 2014, a survey by the Nordic country’s safety administration showed earlier in 2016.
“Nothing is indicating that there is a link between the reduced costs and increased level of risk,” Tor Arnesen, chief of Norway for Royal Dutch Shell Plc, told the conference. “If you want to know if safety is prioritized differently today, the answer is no.”
The Industri Energi and SAFE unions, both representing oil workers, said they were pleased with the government initiative.
“We are in the midst of a tough time, and we know that it will continue. Cost cuts and layoffs for over 2.5 years is a substantial burden to local partners even though there are variations,” Industri Energi deputy leader Frode Alvheim said.
The price of North Sea Brent crude has recovered from a low of $28/bbl in January to about $47/bbl but is still down about 60% from its 2014 peak.
—Reuters
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