1. Energy topic Presentation by working group September 2015 Joint US/EU Conference

2. Issues Energy sectors in two regions are very different but many problems are similar. Some companies operate in both regions. Oil and Gas exploration and production have relatively mature safety systems, although that does not always translate into an effective safety culture or outcomes. Still a high hazard sector for fatalities and injuries as well as occ health risks. On some sites there can also be major hazard, environmental and societal risks. Safety issues arise not just from production and exploration but also transportation of people and materials.

3. Regulation US - mainly federal. Concern that regulation making is slow and probably more catching up rather than leading. Europe- European regulations provide a framework but each country is responsible for its own national laws, but they must comply with the EU regs as a minimum. Recent regulations have emphasised the role of the operator and the importance of the safety case. US regulations tend to be more prescriptive and EU tend to be more goal-setting.

4. Regulations are not the sole solution Regulations are not the complete solution in themselves and industry standards and guidance are an important way of ensuring that industry achieves and goes beyond compliance. Many successes transcend classical models of regulation and show that leadership and partnership are important. Operators also are influenced by risk of reputational damage from high impact incidents. Many examples of joint working in production and distribution. Examples given that higher safety can lead to higher returns in terms of productivity or profitability. Shifting the dialogue from safety in isolation to maintaining safe production and economic growth.

5. Other energy industries Considered mainly oil and gas exploration and production but also electrical distribution. Brief mention of renewable but not discussed in detail. Group believes that the area of other energy industries is ideal for cross-atlantic cooperation.

6. Problems affecting safety cultures fragmentation of the industry, transitory workforce, ageing infrastructure, supply chain ageing workforce, market volatility. competency of management and workforce. competency and maturity of enterprises. conflict of systems. Lack of trust and respect.

7. Questions Are current regulations fit for purpose for the oil and gas industry? Are they transferable to new and emerging sectors such as renewables? What other drivers for change can we use to develop a safety culture, including for small enterprises? How can we ensure management buy-in and leadership? How can we promote employee engagement? How do we have a meaningful safety culture and safety regime suitable for the future not just one that is driven from past incidents.

8. Themes Need to develop more common safety processes and standards including permits to work, risk management systems, induction, qualifications across the industry. Need to manage the supply chain. Importance of worker and the need to encourage and develop it. A view that for regulation to work it must be practical, effective, evidence-based, and preferably developed through consensus between the regulator industry and labour. More can be done now to develop, share and apply best practice across the industry and with small organisations.

9. Recommendations Those present shall use existing sites including Step-Change in Safety and the National Steps Network website to post information and exchange best practice in other jurisdictions on oil and gas and renewables. A paper will be prepared by the EU delegation to develop a paper on the EU experience of safety cases to be shared with the US delegation and also the international regulators (IRF). They will also host a visit. The US delegation will produce a paper on the safety issues arising from hydraulic fracturing (fracking) for the EU delegation and would also host a visit to North Dakota. A number of people undertook to participate in a teleconference quarterly (US to ocordinate) to ensure these actions are implemented and build on the momentum.