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3 Processes for Evaluating and Developing Technologies
Pages 27-38

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From page 27...
... This characterization will often come from the original source of the technology, but in the event that it is incomplete or missing, BSEE should be prepared to perform the necessary tests or to utilize external laboratories and technical resources to have this work done. Just as important, BSEE should take a system-level view of any technology and its impact on safety that considers not only the individual technology but also the overall complexity of the integrated drilling or production system and the interactions of individual components, subsystems, and systems, including human factors.
From page 28...
... For proposed new technologies, trustworthy answers may be difficult or impossible to obtain before the decision is made whether to deploy the technology. Although many methods of engineering reliability and risk analysis have been developed to help anticipate and reduce risks of failures in technological systems, none completely overcomes the complexity and uncertainty inherent in managing risks of new technologies in oil and gas exploration and production.
From page 29...
... .  Statistical risk models and data analysis can be applied to accident precursors and near misses to help make best use of experience as it accumulates and provide early warnings of potential failure modes.
From page 30...
... Important concerns have arisen in other areas of risk analysis -- for example, green chemistry (where some believe that regulatory programs intended to prevent the use of old chemicals suspected of possibly harming health have led to the "regrettable substitution" of new chemicals that harm health) ,3 pharmaceutical safety [where some observers have expressed concerns that bans on the use of animal antibiotics, intended to reduce the spread of resistant organisms, have instead led to more animal and human illnesses and to increases in therapeutic antibiotic use for both animals and people (Hayes and Jensen 2003)
From page 31...
... The economic test established in the statute is consistent with these analytic realities. The statute establishes a cost test for evaluating a technology option, mandating "the use of the best available and safest technologies which the Secretary determines to be economically feasible, wherever failure of equipment would have a significant effect on safety, health, or the environment.
From page 32...
... The previous section on probabilistic risk assessment provides insights into how difficult these types of determinations will be. In view of the challenges associated with technology assessments and economic analyses and of the role played by expert judgments, BSEE should seek access to the requisite expertise, including a multidisciplinary group of individuals with economic, engineering, and scientific skills; access to experts with unique technical skills; and the ability to request independent reviews (Recommendation 3-3)
From page 33...
... In November 2010, Secretary of the Interior Ken Salazar proposed the formation of an "Ocean Energy Safety Institute" (OESI) in partial response to the Deepwater Horizon oil spill to assist BSEE by facilitating R&D, training, and implementation of operational improvements in offshore drilling safety and environmental protection.
From page 34...
... Over the past two decades, industry research has shifted more to technology development and deployment targeting specific assets or asset classes (deep water, tight formations) and away from basic research, leaving a gap that can be filled by government-sponsored research.
From page 35...
... Applied research and development is largely conducted by private interests, to whom an assessment of risks associated with their investments is of critical importance. Available Resources and Incentives In funding research for new technology offshore, the federal government invests on behalf of the public, and industry invests on behalf of its shareholders.
From page 36...
... ;9  Awards within DOE, DOI, and other federal agencies for valuable federal, state, and local government employee contributions to outer continental shelf BAST;  A BAST prize cosponsored by DOI and industry through the Offshore Technology Conference or a similar visible venue; and  The establishment of an SBIR program or a small business technology transfer program, which could help broaden participation to smaller industry participants.10 Favorable treatment might be extended to low-risk operating environments where new safety technologies could be deployed first with minimum risk to gain valuable operating data and experience. Organization and Facilities As discussed in Chapter 2, there are several examples of organizations that address exploration and production technology development and maturation.
From page 37...
... industry, and BSEE could take the lead in promoting the implied international cooperation. The compendium process should proactively seek and discuss industry plans for using test facilities more effectively for BAST introduction.
From page 38...
... 2010-N10. Statement of Compliance with Applicable Regulations and Evaluation of Information Demonstrating Adequate Spill Response and Well Containment Resources.


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