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Parliament rejects calls for offshore oil drilling ban

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Published 14 September 2011

The European Parliament has rejected calls for a moratorium on offshore drilling, pushing instead for Brussels to adopt new rules obliging oil majors to subscribe to insurance schemes in order to cover the potentially disastrous consequences of an oil spill.

Imposing a ban on offshore oil drilling or exploration would be "a disproportionate reaction" to last year's oil spill in the Gulf of Mexico, members of the European Parliament agreed in a resolution adopted yesterday (13 September).

Following last year's disaster, the European Commission had contemplated imposing a moratorium on offshore oil drilling but later abandoned the idea, saying such decisions would best be taken at national level.

The Commission is now expected to follow up in the autumn with a legislative proposal to improve offshore oil and gas drilling safety. The legislation will need approval from the European Parliament and EU member states to become law.

In its resolution – adopted with 602 votes in favour, 64 against and 13 abstentions – the Parliament refrained from calling for an outright ban on offshore oil drilling, saying it could damage Europe's economic growth.

"Offshore sources are the world's fourth-largest production area and it is crucial to meeting Europe's energy needs," argued Vicky Ford MEP (European Conservatives and Reformists; UK), the Parliament's rapporteur on the resolution.

Environmentalist were disappointed but welcomed the Parliament's call for oil companies to subscribe to mandatory insurance schemes in order to cover the potential clean-up costs of offshore drilling activity.

The resolution also supported calls to strengthen the European Maritime Safety Agency (EMSA), which they said should be empowered to coordinate national responses in the event of an accident.

Positions: 

Vicky Ford MEP (ECR; UK), the European Parliament's rapporteur on the resolution, said there was no need for "a pan-European super-regulator," claiming that stronger cooperation between national authorities would be enough.

"Every platform and rig has specific circumstances, so regulators and operators must work together to develop a safety plan specific to that site," Ford said after the vote. "We need contingency plans and for all the equipment to be logged so that it can be deployed in the first few hours or days in order to prevent an ecological catastrophe."

Meanwhile, a moratorium on oil drilling "could cause serious damage to our economic growth," she argued. "If a spill were to occur operators should be financially liable for the costs and damage. If negligence occurs then those responsible should be made accountable."

Greens MEPs were disappointed by the vote, saying the European Parliament had failed to address the "potentially disastrous consequences of an oil spill" by imposing a drilling ban in environmentally-sensitive areas like the Arctic. They also called for the oil industry to invest more in measures to prevent accidents. "Regrettably, the majority of MEPs failed to support these proposals," said Green MEP Michèle Rivasi.

The Greens welcomed "some positive elements," however, such as calls to strengthen the European Maritime Safety Agency (EMSA) and its power to control offshore platforms.

"We also welcome the proposals to clarify the full liability of the responsible firms in case of accidents, the need for mandatory insurance and to develop emergency plans. This would clearly be a breakthrough at EU level. However, overall the report falls short of responding to the cross-border risks posed by offshore exploration."

Ian Hudghton, an MEP from the Scottish National Pary (SNP), an affiliate member of the Greens/European Free Alliance group in the European Parliament, welcomed the Parliament's rejection of an oil drilling ban.

"Calls for a ban on deep-sea oil exploration were wholly disproportionate. Scotland's oil industry has already been hit hard by Westminster using it as a cash cow – unnecessary interference from the EU would only have compounded matters," he argued.

"As we move towards further powers for the Scottish parliament and the referendum on independence it is clear that offshore safety must be a priority for Scotland's politicians.  An independent Scotland must nurture a vibrant offshore sector, which safeguards both our valuable coastal waters and the livelihoods of thousands of oil workers," he said. 

Next steps: 
  • Autumn 2011: European Commission legislative proposal expected to improve offshore oil and gas drilling safety.
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.

A series of meetings were held over the summer of 2010 to discuss potential loopholes in EU legislation that might need to be addressed in order to prevent similar catastrophes from occurring in Europe.

In Europe, over 90% of oil and over 60% of gas production comes from offshore operations, mostly in the North Sea and Norwegian Sea.

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