Failing to Fix What is Found: Risk Accommodation in the Oil and Gas Industry

Madelynn R. D. Stackhouse and Robert Stewart

Risk Analysis, 2017, vol. 37, issue 1, 130-146

Abstract: The present program of research synthesizes the findings from three studies in line with two goals. First, the present research explores how the oil and gas industry is performing at risk mitigation in terms of finding and fixing errors when they occur. Second, the present research explores what factors in the work environment relate to a risk‐accommodating environment. Study 1 presents a descriptive evaluation of high‐consequence incidents at 34 oil and gas companies over a 12‐month period (N = 873), especially in terms of those companies’ effectiveness at investigating and fixing errors. The analysis found that most investigations were fair in terms of quality (mean = 75.50%), with a smaller proportion that were weak (mean = 11.40%) or strong (mean = 13.24%). Furthermore, most companies took at least one corrective action for high‐consequence incidents, but few of these corrective actions were confirmed as having been completed (mean = 13.77%). In fact, most corrective actions were secondary interim administrative controls (e.g., having a safety meeting) rather than fair or strong controls (e.g., training, engineering elimination). Study 2a found that several environmental factors explain the 56.41% variance in safety, including management's disengagement from safety concerns, finding and fixing errors, safety management system effectiveness, training, employee safety, procedures, and a production‐over‐safety culture. Qualitative results from Study 2b suggest that a compliance‐based culture of adhering to liability concerns, out‐group blame, and a production‐over‐safety orientation may all impede safety effectiveness.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:wly:riskan:v:37:y:2017:i:1:p:130-146

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