The Role Of The Department Of Energy In The Safe Development Of UK Offshore Oil And Gas Resources

Abstract

George, Henry Ridyard; Department of Energy, United Kingdom Abstract The UK Government has taken a leading role in legislating for the safe exploration and development of offshore petroleum resources. This paper discusses the form taken by this legislation, the responsibilities of the various government departments involved and procedures for enforcement. Particular reference is made to the role of the Petroleum Engineering Division of the Department of Energy. In formulating the regulations the need for research into various matters concerning safe design and operation of offshore installations became apparent and the paper discusses the most important of these and the means by which further research needs are identified and research work is initiated. Introduction The United Kingdom has taken a leading role in the formulating and enactment of legislation for the safe exploration and development of offshore oil and gas resources. Table One lists the main relevant statutes of the United Kingdom. The first legislation governing petroleum was the Petroleum (Production) Act 1918, petroleum was the Petroleum (Production) Act 1918, which was passed after Government sponsorship of the search for petroleum during the 1914/18 war. In 1934, this Act which vested in the Crown the ownership of all natural petroleum not then discovered. In 1958 the first United Nations Conference on the Law of the Sea was held and it was agreed that coastal states have sovereign rights to the exploration for the exploitation of the natural resources of the Continental Shelf. The United Kingdom ratified the 1958 Convention and in 1964 the Continental Shelf Act was passed, which applied the provisions of the Petroleum (Production) Act of 1934 provisions of the Petroleum (Production) Act of 1934 to the United Kingdom Continental Shelf. Figure One shows how the North Sea has been divided between the coastal states according to the principles of the 1958 Convention. Regulations were issued under the 1934 and 1964 Acts governing the Continental Shelf and in 1964 the first licences for the development of the Continental Shelf were issued. The first offshore gas field (West Sole) was discovered in 1965 and gas was first brought ashore in 1967. Natural gas now supplies about 98 per cent of United Kingdom gas now supplies some 18 per cent of the primary energy requirements of the UK. The first commercial oil field (Montrose) was discovered in 1969 and the firs oil production was from the Argyll field in June 1975. There are at present nine oil fields in production and they present nine oil fields in production and they provide some 50 per cent of UK oil demand. The UK provide some 50 per cent of UK oil demand. The UK should reach self-sufficiency both in oil and in gas by 1980. SAFE CONDUCT OF OPERATION Safety of workers has always been a major concern of UK Governments and the first Continental Shelf Petroleum Production Regulations issued in 1964 Petroleum Production Regulations issued in 1964 contained (amongst others) clauses requiring the licenses to: -Obtain the consent of the Minister to the drilling and the abandonment of wells.To "execute all operations in or in connection with the licensed area in a proper workman-like manner in accordance with methods and practice customarily used in good oil field practice".To "comply with any instructions from time to time given by the Minister in writing for securing the safety, health and welfare for persons employed in or about the licensed area". These clauses were designed to minimise the risks of a blow-out occurring which could cause danger or loss of life to the persons engaged in the operation and extensive pollution to the environment; and also to promote good operating practices thereby improving the safety of workers generally and reducing accidental pollution. p. 63