Can Regulators Stop Accidents?

The MMS (Minerals Management Service) has been severely criticized for not being a more forceful regulator. The President has already taken action to split the agency in two (one part to collect government oil royalties - the other to regulate safety). But critics in the press are calling for heads to roll.

Even one of the most forceful and independent regulators, the US Nuclear Regulatory Commission, can't stop all nuclear incidents (for example, the Davis-Besse reactor vessel head corrosion hole near-miss).

This brings up a bigger issue ... can regulators stop accidents? What should they be expected to do? Is a cooperative regulatory environment better or worse than a contentious regulatory environment?

To me, the responsibility to stop accidents is held by the management at the company doing the work. In the case of the BP/Transocean Deepwater Horizon accident that responsibility would belong to BP and Transocean. But I can see the roll of regulation is high-hazard industries.

What do you think? Was the MMS too easy? Did a lack of regulation contribute to the BP/Transocean Deepwater Horizon blowout? Is the US government partially responsible for this accident?

Let me know your ideas by leaving a comment at:

http://www.taproot.com/wordpress/2010/06/08/interesting-analysis-of-regulatory-process-in-the-off-shore-oil-industry-what-do-you-think/

Best regards,


http://www.taproot.com