Legal challenges to aerial drone technology in the oil and gas industry

Abstract

The use of unmanned aerial vehicles (UAVs) has grown exponentially across a host of sectors in the past year, with the oil and gas industry at the forefront of that charge. UAVs can provide real-time vision and data collection from previously inaccessible vantage points, along with reducing time and effort when applied to tasks that previously required costly solutions. Pipeline inspections monitoring, theft and damage using UAVs is possible due to the ability to cover large distances as well as offering imaging and sensor technology. Similarly, UAVs have the ability to provide accurate, close-up views of offshore oil platforms, providing operators with immediate inspection to areas otherwise available only with difficulty. On-board emission and heat sensors offer wide-ranging assistance to operators, particularly in the context of leak detection and flare stack inspection. Along with this growth comes the need to ensure legal compliance and adequate insurance coverage. The insurance industry is leading the charge through fostering the development of industry standards designed to set a benchmark in UAV operation. Increasing use of UAVs has already caught the eye of federal regulators. For example, Civil Aviation Safety Authority (CASA) in Australia will soon release revised regulations around commercial use of UAVs, and the US Federal Aviation Administration (FAA) is expected to release similar regulations in early 2016. This extended abstract focuses on the legal challenges associated with the ever-expanding application of UAVs to the oil and gas industry.