Offshore Oil and Gas
Offshore Oil and Gas
Setting binding safety and environmental standards with universal liability provisions. Enhancing emergency response-preparedness and capacity building.
The Institute for Sustainable Development and International Relations (IDDRI) is a non-profit policy research institute based in Paris. Its objective is to determine and share the keys for analyzing and understanding strategic issues linked to sustainable development from a global perspective. IDDRI helps stakeholders in deliberating on global governance of the major issues of common interest.
IDDRI produces analyses and provides advice on several topics addressed by the Global Ocean Commission’s Report, including on governance of biodiversity beyond national jurisdiction and regulation of offshore oil and gas. In March 2014, IDDRI has produced a report to inform the Commissioner’s deliberations on the latter topic.
IDDRI welcomes the Global Ocean Commission’s proposals regarding safety standards for and the liability of the offshore oil and gas industry. Because of an increasing energy demand and technological innovations, drilling activities extended and moved into deep and ultra-deep water areas. Recent accidents on offshore platforms have demonstrated that the environmental risks of offshore drilling activities concern all regions in the world and all types of companies, even the big players. - Julien Rochette, Coordinator of IDDRI’s Marine and Coastal Programme
Setting binding safety and environmental standards with universal liability provisions. Enhancing emergency response-preparedness and capacity building.
One-third of the oil and one-quarter of the natural gas consumed today comes from underwater areas, and production continues to increase and expand further and deeper offshore and into new regions.
National regulation of offshore oil and gas operations varies greatly from one country to another, and there are no universally agreed standards for drilling operations on the continental shelf. This is problematic as the water column above the outer continental shelf (beyond 200 nautical miles from shore) is part of the high seas and therefore the responsibility of the global community.
Accidents in deep waters are notoriously difficult and expensive to fix, and can cause severe damage to the marine environment. The Deepwater Horizon accident in 2010 released nearly 5 million barrels of oil into the Gulf of Mexico over 87 days before engineers were able to cap the well. As offshore oil and gas operations move deeper and into more extreme environments such as the Arctic, the industry and regulators are and will be confronted by new challenges. International guidelines defining what constitutes an acceptable risk would provide the industry with a standard to meet, regardless of where in the world it was drilling.
The Commission supports the adoption of international binding protocols with safety and environmental standards for offshore oil and gas exploration and exploitation on the continental shelf, including provisions for emergency response, and capacity building for developing countries.
In keeping with the polluter-pays principle, the Commission also believes that liability should be recognised and regulated and supports the development of an international liability convention to cover all environmental harm caused by the offshore oil and gas industry.