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EU plans to strengthen rules for offshore drilling

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Published 15 July 2010, updated 06 December 2010

The European Commission is planning to toughen rules covering accident prevention and liability for offshore oil drilling in response to BP's Gulf of Mexico spill, Europe's environment chief said on Wednesday (14 July).

An ongoing analysis of the 27-nation bloc's environmental rules has revealed gaps, EU Environment Commissioner Janez Potočnik told journalists after a meeting between several EU commissioners and oil industry representatives in Brussels.

"It seems to me that we have a choice between two options. Either we put in place specific instruments [for offshore drilling] or we extend the scope of our existing tools," he said, without giving a timeline for the proposals.

The bloc's environmental liability legislation and its "polluter pays" principle, which now only covers coastal zones, could be extended to all marine waters, Potočnik said.

The Commission could also propose the mandatory use of financial security instruments by oil rig operators, which is an idea that EU governments have previously rejected, he said.

The bloc's energy chief, Günther Oettinger, said EU governments should follow Norway's recent example and issue a moratorium on new deepwater drilling until the causes of the Deepwater Horizon spill in the Gulf of Mexico were known.

"Norway is our most important partner in the North Sea, and I think what is good for Norway should be good for EU member states as well," he said.

Strengthening licensing procedures

Oettinger stressed that industry must triple check their practices, training programmes and technologies and that companies must convince regulators that they have checked and improved their safety culture.

The Commission plans to work on several key areas to improve safety of drilling, including strengthening licensing procedures.

"Only companies that have demonstrated technical capabilities to stop eventual leaks under given conditions and that have the financial capacity to handle unexpected situations, including the capacity to fully live up to liability claims should be in the position to obtain licenses," Oettinger said.

The EU executive also eyes strengthened prevention through "thorough checks and controls," strengthened transparency, and public scrutiny of the industry as well as of national regulators, Oettinger added.

Strengthened legislation on liability, promotion of EU-level technical standards and development of the European dimension of prevention and disaster intervention are also envisaged.

(EurActiv with Reuters.)

Positions: 

Michael Engell-Jensen, executive director of the International Association of Oil & Gas Producers (OGP), said current safety rules were enough to prevent a similar accident from happening in Europe.

"The industry feels that we have a system in Europe which does provide a safety which is acceptable under the circumstances that we have learned to operate under," he said.

"Our recommendation, therefore, is to continue processing applications as has been done in the past. Obviously, we accept that this scrutiny will be even tighter than before," he added.

Greenpeace, an environmental NGO, said it supports Commissioner Oettinger's proposal to introduce a de facto moratorium on deep-sea drilling in European waters until investigations into the causes of BP's spill in the Gulf of Mexico have been completed and regulations adapted to take account of risks.

"The consequences of a BP-style event in areas like the Mediterranean, the North Sea or the Arctic would be catastrophic," said Christoph von Lieven, an oil expert at Greenpeace. "It's time to end the oil addiction and recognise that offshore drilling poses unacceptable risks."

Next steps: 
  • 14 July 2010: Hearing with EU-27 national regulators and Norway.
  • Next week: Talks with civil society.
  • End of Sept. 2010: Commission communication on the issue.
Background: 

In the aftermath of the BP oil slick in the Gulf of Mexico, the European Commission convened safety talks on deep-sea oil drilling with several oil companies – including Shell and BP.

The meeting, held on 11 May, discussed potential loopholes in EU legislation that might need to be addressed in order to prevent similar catastrophes from occurring in Europe (EurActiv 09/06/10; EurActiv 24/06/10).

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