Home / News / IADC chairman: Industry will move forward to build environmental culture; long-term outlook strong

 IADC chairman Claus Hemmingsen presents Ali H Al-Ghamdi with a gift in appreciation of Mr Al-Ghamdi’s service as chairman of the IADC Northern Arabian Gulf Chapter.

The drilling industry can develop an environmental culture to match its “extraordinary” safety culture, and this will happen over the next couple of years, said IADC chairman Claus Hemmingsen, speaking 21 April at IADC Drilling HSE Middle East 2009 in Abu Dhabi.

“I am confident that over the next couple of years, with the programs that are contemplated, we will see an environmental culture that will match the already-existing safety culture,” Mr Hemmingsen remarked.

IADC chairman: Industry will move forward to build environmental culture; long-term outlook strong

He said that environmental benchmarking will be an increased focus area for IADC. “Right now, the HSE Committee is working on internationalizing IADC guidelines for collecting environmental data by adding specifications relevant to European Union requirements,” he said.

Mr Hemmingsen acknowledged that the world economy has thrown the global drilling industry into turmoil. However, he expressed confidence that the long-term outlook is very positive.

“Only a year ago, we were facing rapidly increasing oil prices, to unprecedented and seemingly unsustainable levels,” he remarked. “Immediately thereafter we saw a fast and dramatic decline to a level which took us back to 2005.

“We currently see an industry operating in somewhat stormy waters. The uncertainties in demand from the oil companies and the prevailing global financial situation have provided the drilling industry with some anxiety for the future.”

On the other hand, Mr Hemmingsen pointed out, “Less than five years ago, the industry expressed optimism – and hope – at the prospect of an oil price sustainably above the USD$40 per barrel mark. By these standards, the current oil prices is way beyond this range!”

The industry must expect to adjust costs to levels appropriate for its now-reduced revenues. This is a sharp turnaround from the startling cost increases that occurred over the last couple of years.

Short term, the industry faces diverse challenges:

• Unpredictable market with volatile oil prices leading to uncertainty in demand;
• Depleting oil fields requiring extensive work;
• Need for increased exploration;
• Call for more advanced technology to improve efficiency and HSE.

“It is my strong belief that we are capable of meeting all these challenges in a successful and professional way that matches the expectations of our partners and clients,” Mr Hemmingsen said.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>