An Industry in Transition

ABSTRACT The offshore areas around the world are beginning to play a more significant role in meeting global energy needs. Rigs and personnel move from one part of the globe to another on a daily basis. There is growing interest in the use of standards to both enhance safety and environmental performance and to lower costs. An example of this is the increased interest in the activities of the International Organization for Standardization, and specifically ISO Technical Committee 67. ISO/TC67 is charged with preparing standards for materials and equipment, and offshore structures for the petroleum and natural gas industries. This committee has over 1,000 industry personnel working on over 130 standards. These standards define the technical operations and limits for pipe-both steel and aluminum, drilling fluids, cements and hydraulic fluids, drilling and production equipment including drill stem, packers and subsea production systems, OCTG, offshore piping, steam turbines and flexible couplings, compressors and turbines, and offshore structures including fixed steel or concrete, and floating systems. Specifically excluded from the remit for ISO/TC67 is any standardization of ships or marine technology covered by IMO, SOLAS and MARPOL. Regulatory bodies in countries must write operating practices which address their safety and environmental requirements, including the protection of personnel. It is also becoming more important that these requirements are accomplished in a cost efficient manner since companies have alternative investment opportunities due to increased access around the globe. The use of standards to which both government and industry have contributed, provides an opportunity for government to express its requirements that reflects an industry consensus on what is the best way to accomplish a task. International standards give the industry the ability to expedite manufacture and purchase of equipment, eliminating barriers to trade and commerce. Standards can also apply to less tangible items such as training and management systems. These same international standards allow regulatory agencies to apply a consistent nondiscriminatory basis for allowing industry to operate in their locale, i.e., provide a level playing field. INTRODUCTION The petroleum and natural gas industries have been vigorously pursuing the writing and adoption of international standards for about ten years. The historical perspective was presented in several papers given during former OTC meetings. 1,2,3,4, 5 Also defined in these papers are the operational aspects of each standards organization (ISO, CEN, ANSI, API, ASME, ASTM, etc.) and the interrelationships among them. This paper shows the progress made since the last paper was written (1995), and how the petroleum and natural gas is "an industry in transition" one which relies on national standards to one in which international standards represent the basis against which business is undertaken. Engaged in the transition process are oil and gas companies, manufacturers, suppliers/service companies, academia, and government bodies..