Energy security has become an ambiguous concept-except when it is applied to protecting facilities and equipment. Then it becomes strikingly relevant.
The oil and gas industry has historically recognized the importance of safeguarding its property from mischief and vandalism. Potential costs of not doing so can range from hundreds of thousands of dollars for a single onshore rig to millions for a refinery or natural gas processing plant. Concern over possible attacks by terrorists grew after Sept. 11, 2001. When Hurricanes Katrina and Rita disrupted Gulf Coast refining and transportation late last summer, the nation learned how much of its oil and gas system is concentrated in a single region.
Industry efforts to recover were equally impressive. Of the approximately 2 million b/d of refining capacity that went down, 367,000 b/d remained offline on the Gulf Coast as of Dec. 15. The US Minerals Management Service reported 26.82% of daily oil production and 15.94% of daily gas production in the Gulf of Mexico remained shut in as of Jan. 6.
‘Performed remarkably’
“Our member companies and their employees performed remarkably,” Interstate Natural Gas Association of America Pres. Donald F. Santa told me in mid-December. “A few weeks ago, I was able to see some of the damage and the successful efforts to restore supplies and transportation.” Nevertheless, several industry associations recognize that the regulatory landscape involving plant and transportation security is changing. The US Department of Homeland Security (DHS) is assuming responsibility previously held by agencies in other departments. Some members of the 109th Congress also appear ready to propose legislation.
National Petrochemical & Refiners Association Pres. Bob Slaughter considers chemical plant and refinery security “a sleeper issue that’s real.” He said Sens. Susan M. Collins (R-Me.) and Joseph I. Lieberman (D-Conn.) introduced a bill last session that NPRA is still studying.
But the association also is trying to let Congress know that refiners and chemical plant owners and operators already have taken significant steps to protect their installations.
‘Practical security’
“We would like to see practical security requirements that recognize what’s already been done,” Slaughter told me late last month. “We are somewhat concerned about mandatory alternative technologies where persons outside the industry would determine the approaches.”
There was not yet a House counterpart to the Collins-Lieberman bill, “but in an election year, things can happen quickly,” he added.
Santa said much of the responsibility previously handled by the Department of Transportation agencies has moved to DHS, although DOT has retained a consultative role that could be enhanced. INGAA is more immediately concerned with reauthorization of the Pipeline Safety Act, which it expects Congress to begin considering soon. US gas pipelines enter the process this time with no recent accidents. Santa said they are equally determined to prevent intentional destruction. ✦
