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The explosion of BP's Deep Water Horizon oil rig last spring has raised serious questions in the oil and gas industry regarding safety versus profits. While it is a fundamental truth that business exists to make money for its owners, it goes against human nature to believe that corporations would purposely sacrifice the safety of workers in order to increase profit. Unfortunately, many in the media, as well as government leaders and celebrities, have accused BP of just that very thing. In an effort to stave off some of the criticism, the oil company made some modifications this past October aimed at increasing safety standards.

Understanding how dangerous and costly HPHT drilling can be is fundamental to understanding the problem oil companies’ face. First and foremost, the very nature of HPHT drilling means that petroleum companies are tapping into areas that extremely volatile because of high geological pressure and temperature. Even if it were possible to produce equipment with 100% safety record, the explosive nature of high temperature and pressure would eventually result in some sort of accident.

As far as cost is concerned, the specialized nature of HPHT oil and gas wells requires specific equipment and materials are used as well as labour intensive practices. The cost of drilling these wells is incredibly high when compared to a traditional well. Oil companies like BP must take into consideration all the money they invest in new wells in relation to how much money they believe they can take out.

Although profit is never an excuse for poor safety practices, there is a balancing act oil companies must perform in order to maximize profits while keeping workers and the environment safe. Add to that the enormous, and often excessive, government regulation placed on petroleum companies, it becomes somewhat easier to understand their predicament.

This past October former BP CEO Tony Hayward was replaced by Bob Dudley who, as one of his first decisions, altered the bonus structure paid to company management. Where bonuses were previously tied to meeting both financial and safety targets, they were tilted heavily toward the financial targets at 70%. Dudley changed the system so bonuses are now tied entirely to meeting safety standards. It may be that the new bonus structure is only temporary, but nonetheless, Dudley's attempts to improve safety can't be ignored.

In an age where HPHT drilling continues to increase as a total number of new oil and gas wells drilled, it's also apparent that safety standards must constantly be visited and revised. Mankind will never completely eliminate all accidents from the petroleum industry, but where safety standards can be increased and lives saved it's always a good idea.