OIL-SPILLS, WORKPLACE SAFETY AND FIRM SIZE - EVIDENCE FROM THE US GULF-OF-MEXICO OCS

Accidents on offshore oil and gas platforms have declined dramatically during the past decade, yet concern about safety and environmental da mages from offshore operations seems to have intensified. In the U.S. Gulf of Mexico, some of this concern is premised on an offshore restru cturing caused by major oil and gas companies investing more heavily i n exploration and production (E&P) in foreign countries, leaving more domestic E&P to smaller 'independents' assumed to be less careful and capable than majors. Both. industry and regulatory specialists believe this trend will increase the risk of accidents and oil spills. Howeve r, our analysis found no evidence that more independents would threate n workers' safety or the marine environment. In fact, on average indep endents had a slightly better record than the majors. We also found th at the Minerals Management Service's platform inspection program had a beneficial and statistically significant effect, decreasing both offs hore accidents and oil spills.