Has the Safety Case Failed?

Abstract

Abstract The paper examines the performance of the oil and gas industry, in particular in Australia and New Zealand, since the introduction of the Safety Case regime. Emphasis is placed on identified project issues and conclusions are drawn related to the current status of the industry, its maturity and its ability to apply the Safety Case regime in the manner required to achieve anticipated results. The paper examines whether issues that have led to project failings in recent years are inherent in the way the industry operates. The paper discusses the experience of the offshore oil and gas industry in Australasia, in comparison with other parts of the world. The experience of other industries that apply the Safety Case approach is also discussed. The core issue that is highlighted relates to the manner in which the Safety Case is applied, including issues of lack of understanding of the Safety Case process by management, the effect of contracting strategy on the effectiveness of the Safety Case and the lack of a common understanding of the role of the Safety Case. The paper is based on cumulative experience since the beginning of the Safety Case in the oil and gas industry, drawing in particular from experience on major projects within the last few years. The paper highlights the manner in which the industry undertakes development projects, in particular, with some observations about the legacy that this leaves for the operating company and its personnel. More than 20 years after Piper Alpha, the industry has moved on and this paper seeks to provide a re-appraisal of the effectiveness with which major accident hazards and risks are managed. The paper also seeks to draw conclusions that illustrate a way forward for the oil and gas industry.