Regulated Self-Regulation or External Control? A Study of the Effects of Different Legislative Approaches in the Petroleum Sector in Norway and Brazil.

Abstract

AbstractThis is a study of the regulatory regimes related to health and safety in the offshore petroleum sector in Norway and Brazil. A comparison between these two countries is of particular interest because both countries belong to the same legal tradition emphasizing statutory, written law. This separates them somewhat from the Anglo-American perspective relying heavily upon the common law principle. Even though Norway and Brazil show principal similarities they have chosen quite different strategies related to regulation of occupational health and safety in the petroleum sector.The study is based upon an analysis of relevant regulatory texts. The document analysis was followed by interviews with key representatives in the petroleum sector in the two countries.The findings show that the Norwegian regulatory regime has a holistic approach. The authorities focus upon general principles more than detailed prescriptions. The supervisory activities concentrate upon the companies' systematic governance aiming to fulfill regulatory requirements. The Norwegian regime also is closely connected with the societal expectations put upon the actors in the petroleum sector. A high level of engagement and mutual contact is expected from the industry as well as from the employees and the authorities.The Brazilian regulatory regime is more particulate with quite a huge set of detailed prescriptions. In general these requirements are quite clear. The industry knows the expectations. The legislation is easy to follow up both from the enterprises and through controls by the authorities. Though closely connected to the superior national legislation, it is not a highly integrated part of the industrial culture.If we shall believe in research claiming that prevention of work related illness and avoidance of accidents are results of cultural and organisational processes, then the Norwegian legislation seems to be the most effective as it relies upon the willingness for the actors to work closely together to shape such cultures. If there are greater tensions and conflicts in the industry or in the surrounding society, the Brazilian model may show to give better control with defined risk factors.The study is a part of a master thesis at the University of Stavanger. This paper is written with support from the project "Robust Regulation in the Norwegian petroleum industry", funded by The Research Council of Norway.