API says improved standards will help raise bar on offshore safety

WASHINGTON, August 12, 2010 – API Upstream Director Erik Milito told a joint committee of the National Academy of Engineering and the National Research Council today that the U.S. oil and natural gas industry is improving industry standards to strengthen deepwater development safety.

“We recognize the accident in the Gulf in April requires a fresh look at everything affecting safety, including industry standards and government regulations,” Milito said.  “In addition to our ongoing standards work,” he added, “API is conducting a top-to-bottom review of offshore equipment, operating practices, spill response and well control that is providing safety recommendations to the Department of the Interior.”

API maintains more than 500 standards – recommended practices, specifications, codes, technical publications, reports and studies – that cover all aspects of the industry.  Two hundred-forty are focused on exploration and production activities, including at least a dozen safety standards.

“Industry standards are critical to safety,” said API President and CEO Jack Gerard. “They always have been an important complement to government regulation and oversight.”  On government oversight, Gerard said, “it’s important to find out what has worked and what hasn’t, where the rules are strong and where there are gaps, and how rules can integrate with industry’s own best practices and safety procedures.  The goal should be to build on the considerable strengths of the existing system of oversight and safe practices and ensure new approaches facilitate expeditious, cost-effective energy development while also raising the bar on safety.”

Updated: August 12, 2010