Brussels, 13/10/2010 (Agence Europe) - Though it has recommended stricter gas and oil exploration and extraction rules, the European Commission appears to have given up hope of the moratorium on new offshore oil drilling in EU waters it had hoped for while awaiting the results of the investigation into the explosion on the BP oil platform Deepwater Horizon in the Gulf of Mexico on 20 April which brought an unprecedented oil spillage and environmental damage. On 12 October, the United States conditionally lifted the moratorium it imposed on 12 July. The reservations expressed by the European Parliament and the Council, in particular the United Kingdom, have, then, won the day over the idea dearly held by Energy Commissioner Günther Oettinger, who will now put his thoughts to MEPs and ministers (an Energy Council meeting is scheduled for the start of December).
Specific legislation for oil platforms. The review with stakeholders (the industry and national regulatory authorities) of current oil platform safety and liabilities rules, launched by Oettinger in May, has led the Commission to consider, for the first time, general EU legislation on oil platforms, imposing the most stringent safety standards in the world. Although safety standards in this sector are generally tough, they vary from one energy company to another. In addition, each member state has its own laws. Some aspects, indeed, of safety are governed by existing European law, for example, the directive on environmental liability and the waste framework directive. Since, in the event of an offshore accident, environmental, economic and social damage respects no borders, the Commission feels it necessary to review the EU's legal framework in this area to ensure the highest possible level of safety. A formal proposal is expected for the start of next year.
Making granting licences conditional on emergency plans. The Commission is proposing, then, prevention, accident and response and financial liability standards. It says that, in future, member states should ensure that oil companies applying for a drilling permit meet the basic EU requirements. Future EU legislation should, it says, require companies to have an emergency plan and to be able to demonstrate that they have sufficient capital at their disposal to be able to pay for any damage caused to the environment and compensate victims of any potential accident. The Commission also proposes that inspections of oil platforms by national authorities be assessed by independent experts. Technical standards should require, too, that only safety equipment, and especially sealing plugs, meeting the highest standards, are used. In the event of a disaster, the Commission proposes that the oil companies clean up and provide reparation for the damage caused to the environment in an area of up to 200 nautical miles from the coast. The European Maritime Safety Agency (EMSA), which mainly deals with pollution from vessels, should see its area of responsibility extended to cover pollution from oil platforms. The Commission will also work to have existing international conventions and new joint initiatives implemented.
Retreat in face of UK pressure. Its document may call for caution on the part of member states in granting new permits, while noting that the final decision is exclusively theirs, but the Commission has pulled back from its call for a moratorium on all new offshore oil drilling in EU waters, where over one thousand platforms are currently working, mainly in the North-East Atlantic, though also in the Mediterranean and the Black Sea. The UK, which has never hid its opposition to any suspension, arguing that it already had the most stringent rules in the world, was conspicuous in bringing pressure to bear which has led to the retreat. Oettinger, who wanted offshore exploration temporarily suspended while waiting for the results of the investigation into the Deepwater horizon explosion and a review of the EU offshore platform safety regime, admitted that “the word moratorium does not appear in the text”. The initial document, EU sources have revealed, has been reworked under pressure from some members of the Commission, especially High Representative Catherine Ashton, who is British by nationality. The final text recommends only providing for the possible suspension of granting of permits for new drilling.
Reactions. Environmental NGO Greenpeace, which backs a ban on deep water drilling, has regretted Oettinger's back-peddling; Scottish MEPs, after they all, no matter the political group, voted last week to reject a moratorium, are, however, delighted. “I'm pleased that common sense seems to have prevailed. Commissioner Oettinger is wise to heed last week's vote,” said Ian Hudghton (Greens/EFA). Struan Stevenson (EPP) is happy that “controversial plans from the European Commission have been diluted after pressure from Conservative MEPs”. (E.H./transl.rt)