Teaching a class on wellsite safety in Pennsylvania, I tried to emphasize some points using analogies from my past experiences. Over and over, I heard grumblings from the class: “This ain’t Texas!” I got it.
Despite my total belief that the laws of physics apply equally in the Northeast as they do at home on the range, I could empathize with my students. They wanted to hear some stories from closer to home. Fortunately, many years ago, I actually did some work in the Pennsylvania gas storage fields and could draw on several anecdotes to make my points more palatable to my audience.
But imagine trying to start up oil and gas activities in a foreign country? Even in Canada – our friends across the 49th parallel – there are different laws and different ways of doing things.
Canada is familiar with the oil and gas industry. After all, it has been at it longer than we have, citing a discovery well near Oil Springs, Ontario, a full year before the famous Drake well in Pennsylvania. But the industry is moving far afield these days, into countries with markedly different customs, languages, laws, and cultures. For many, this is their country’s debut into the world’s largest business. American companies have an obligation to be goodwill ambassadors as well as honorable professional business leaders.
By contrast, take a look at two of the world’s biggest oil producing countries – Nigeria and Brazil. Both countries have a rich heritage of hydrocarbon exploitation. If you ascribe to the theory of continental drift, you might say they are producing the same oil, born when the two continents fit together like a giant geological puzzle. But that is where the similarity ends.
Nigeria is in turmoil, and the oil and gas industry is in the midst of it. In the south, rebel bands are kidnapping workers; even offshore rigs and production platforms are not immune to these dangers. Pipelines are being breached by the local population looking for fuel, and the thieves have caused some horrific explosions. In the courts, foreign oil and service companies are being accused of bribery.
Brazil, on the other hand, is a model of cooperation. But before you pack your bags, it might be a good idea to learn how Shell transitioned from a foreign stranger to a trusted partner. It took years of planning and hard work before the company announced first oil from its Parque das Conchas field offshore the State of Espirito Santo.
First, the company scrupulously followed Brazilian law to obtain permits, provide safety assurances, ensure local participation of indigenous Brazilian workers and suppliers, and launch a massive public relations and safety campaign. Every piece of imported equipment was declared and passed through customs with duties paid, if appropriate.
Meetings were held in several locations from Rio de Janeiro to towns and cities along the Espirito Santo coastline that might be affected by drilling and field development. Fishermen were shown how the activities would not threaten their livelihoods. Questions were invited, and all questions were answered. Proactive announcements and mailings ensured that the local population was kept informed on the project’s progress. By assuming an uncompromising position of being a good neighbor, Shell was able to complete its project in record time, without a lost-time incident. In completing the project, the company engaged workers and suppliers representing 20 cultures and speaking 20 languages. In short, Shell accepted the fact that Brazil “ain’t Texas.” Nevertheless, through a top-to-bottom commitment to cooperation and collaboration coupled with plain good citizenship, Shell succeeded in completing the total project at Parque das Conchas from seismic exploration to production from a deepwater offshore field. If Brazil were Texas, I am sure Shell would hear a friendly, “Y’all come back soon!”
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