Understanding standards in the oil and gas industry
Why are standards important?
Standards affect every area of our lives. The food we eat, water we drink, cars we drive, clothes we wear, toys our children play with and technology we use all conform to particular standards, often agreed internationally. Usually created by groups of industry experts with oversight from other stakeholders including national governments, supranational organisations such as the UN and members of the public, standards help to keep the population and the environment safe and make international trade easier.
Standards in the oil and gas industry
Standards are especially important in the oil and gas industry where, since the 19th century pipelines have carried hazardous substances over long distances, often buried underground or below the seabed. Transporting toxic substances can be dangerous and occasionally pipelines have leaked, cracked or otherwise failed, with enormous consequences. From the Trans Canada rupture of 1962 to the Deepwater Horizon oil spill of 2010, pipeline disasters have caused death, environmental destruction and long-lasting damage. Clean-up and compensation payments have cost operators and governments dearly and caused damage to companies’ reputations from which it is hard to recover.
19th century beginnings
Oil and gas industry standards have been around since Det Norske Veritas (DNV) was founded in Oslo in 1864 by maritime insurers trying to establish a set of standardised rules and procedures. The American Petroleum Institute was founded in 1919 to set standards across oil production in the United States, promote the oil industry and influence policy. In 1947 the International Standards Organisation was established by delegates from 25 countries, reflecting the growing move towards standards that could be applied across the globe.
Improving safety and efficiency
Standardisation allows the oil and gas industry to operate safely and reliably all over the world. It helps operators manage and reduce risk, provides information vital for training workers, improve public trust, meet higher performance levels and increase efficiency. It also lowers business costs – when operators across. Once standards have been established and adopted across the industry everyone benefits from cheaper, readily available and standardised products and from improvements in best practice.
As pipeline technology has advanced so have safety standards. In the oil and gas industry there are now comprehensive regulations covering all aspects of production from drilling equipment to delivery to fuel stations and everything in between. Standards also govern business processes, management systems and many other behind-the-scenes industry practices.
Major standards organisations
Today API, DNV-GL and ISO standards are probably the most widely recognised standards across the oil industry, although there are numerous others including the British Standards Institute (BSI), International Association of Oil and Gas Producers (IOGP), Oil and Gas UK (OGUK) and the Offshore Petroleum Industry Training Organisation (OPITO). Although the proliferation of standards can seem daunting and confusing in reality it reflects the intense industry focus on safety, reliability and efficiency and shows the growing international collaboration between organisations.
Handling compliance
Oil and gas operators are keenly aware of the costs involved in pipeline failure and invest heavily in prevention and repair. Committing to upholding international standards is a key part of ensuring safety and integrity.
This emphasis on standards is reassuring to stakeholders such as governments, insurers and the general public, but places a considerable compliance burden on operators. Safety requirements now cover every aspect of the industry from pipe welding to new coatings to maintenance and are continually refined and improved.
Further reading
The Value of Standards: American Petroleum Institute
Third party inspection services
OMS offers third party inspection services that can help oil and gas businesses comply with standards requirements. To find out more about our inspection services click here.
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Posted 13.01.20
[5 minute read]