5. OFFSHORE DRILLING:
Spill prompts oil industry panel to recommend new safeguards
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An industry task force convened after last month's blowout at a BP PLC oil well in the Gulf of Mexico will urge significant changes to offshore drilling safety procedures, according to a draft version of the report obtained by The Wall Street Journal.
The draft report, dated May 17, says its recommended changes are not intended to be taken as measures that could have prevented last month's accident. But several of the report's recommendations echo recent criticism of the operations on the Deepwater Horizon rig.
Among them is a suggestion that offshore drilling companies implement increased testing of blowout preventers, which serve as emergency valves to stop the flow of oil. The report also calls for a new group to study the adoption of remote-control acoustic switches, which can also shut off a well in the event of a disaster.
The task force "brought together the best minds in the industry" to learn from the Deepwater Horizon accident and make recommendations to Interior Secretary Ken Salazar, said Jack Gerard, president of the American Petroleum Institute. Among the companies represented were Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC, as well as BP PLC, Transocean Ltd. and Halliburton Co., all of which were involved with the Deepwater Horizon oil rig.
Gerard declined to discuss the task force's specific recommendations but said the oil spill is "a sober reminder that we need to continue to examine our practices" (Ben Casselman, Wall Street Journal [subscription required], May 21). -- GN