By Philippa Silverman - 6th January 2011
A committee of MPs has raised "serious doubts" that Britain is ready to tackle an oil spill of the kind suffered by BP in the Gulf of Mexico last summer.
The House of Commons energy and climate change committee warned that British taxpayers could end up paying the clean-up bill from any major oil spill in UK waters because current rules allow companies to dodge their environmental responsibilities.
However, they supported the UK government's decision not to impose a drilling ban, saying it would hurt the economy and jeopardise UK energy supplies.
The report states that BP appeared to have "cut corners" when it drilled the Gulf of Mexico well which caused the United States' worst ever spill.
It urged greater clarity on the identity of liable parties "to ensure that taxpayers are not required to pick up the tab for clearing up and compensation after a potential offshore incident"
MPs highlighted the "harsh conditions" off the west coast of Shetland, where there they had "serious doubts" about the ability of oil spill response equipment.
The committee has urged the Health and Safety Executive to consider prescribing the use of two of "blind shear" ram devices which are designed to slice through the drill pipe and seal it.
And the cross-party group of MPs added the government could take account of the additional costs when deciding on oil taxes.
Speaking to Radio 4's Today programme, committee chair Tim Yeo said the UK regulatory regime is "far superior to the one that is operated in the US in relation to the Gulf of Mexico".
Yeo said the spill had given the industry in the UK a "jolt" which has led it to adopt new measures to minimise safety risks and to bring more capping and containment equipment to the UK.
He added: "We have a much more rigorous safety case approach to individual licenses being awarded. And have split the responsibility for regulation between three separate agencies."
Energy minister Charles Hendry "welcomed" the report's conclusion and said he would consider its recommendations in detail.
Hendry said: "We looked at our regime and increased inspections immediately after Deepwater Horizon and plan a further review once US reports and the detailed analysis of the factors which caused the Gulf of Mexico incident are available."
He added: "As we move towards a less carbon intensive future, oil and gas are set to remain a key part of our energy system for years to come and it is vital that we search for and produce the UK's own resources as safely as possible."
The committee's report coincides with the US inquiry into the spill which criticised BP for safety inadequacies and cost-cutting.
A report from the US presidential commission blamed "systemic" industry at the Macondo well and said it could happen again without reform.
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