Company Boards of Directors and senior executives of oil and gas companies should take notice of a May 14, 2020, guidance document issued by the Chemical Safety Board (CSB) entitled, “CSB Best Practice Guidance for Corporate Boards of Directors and Executives in the Offshore Oil and Gas Industry for Major Accident Prevention.,” And don’t be deceived by its title reference to offshore activities. Companies also need to pay mind to the guidance for onshore operations. Why? If there is an accident, government agencies will likely argue that the principles articulated apply equally as well on dry land.
Why issue guidance now? The guidance comes at the 10-year anniversary of one of the most significant offshore explosions in history—the Deepwater Horizon explosion that occurred in the Macondo Prospect in the Gulf of Mexico, offshore of Louisiana. The symbolic step of issuing the guidance just one week ahead of the 10 year anniversary of the May 20, 2010, Macondo blowout, fire, and explosion was surely intended to bring additional attention to its release.
The guidance focuses on boards of directors’ and executives’ roles in ensuring implementation of effective safety management systems to manage risks of major accidents properly. The guidance points to a recent industry report [1] noting that process safety is one of the least discussed topics at corporate board meetings. Clearly, the CSB perceives this to be a sign that top-level management at oil and gas companies are not paying enough attention to these issues.