The European Commission has proposed an “optional moratorium” on oil exploration until next spring, when it will come up with the best regulations for oil drilling in the world.
Energy Commissioner Gunther Oettinger today said a moratorium would provide the necessary “breathing space” for legislation to be examined within the coming weeks and months.
Interestingly, although he used the word moratorium, the communication document released by the Commission did not, and called, instead, for the suspension of new licenses by member states, acknowledging that this had to be done by member states themselves.
“I’m a realist,” he said, acknowledging also that the moratorium could not stop current oil drilling taking place.
The moratorium will now be proposed to the European Parliament and the Council of Ministers for a decision to be taken, he said, adding that he was aware countries with a big oil interest would resist it.
“If a moratorium is not accepted then we must at least accept more stringent and permanent procedures,” he said, adding that a majority of countries will not be affected by the moratorium.
He said British multinational BP – which was responsible for this summer’s disaster in the Gulf of Mexico - had “earned” the Commission’s trust by changing its management, paying for the damage it caused and committing to adopting stricter regulations even in its work outside EU jurisdiction.
However, he called for stricter licensing and liability, to make sure oil drilling companies had the necessary contingency plans and could make good for any damage they caused, particularly in cases of smaller companies which could end up bankrupt if disaster strikes.
Describing this as a “major step” towards improving safety and security, the Commissioner acknowledged the extensive damage that an oil spill in EU and neighbouring countries would create, specifically naming Libya and Egypt as countries they had to open dialogue with.
He added that countries like Malta and Cyprus were also planning to explore further.
While the oil industry was essential for EU not to be dependent on other countries and to create jobs and sustain industry, legislation had to be examined closely to minimise risks and cater for disasters.
Existing oil platforms, particularly older ones, must update their equipment and only the best equipment should be approved by EU states.
Some countries were also starting to drill ever deeper, creating climatic variations that called for more safety standards.
“We need to inspect the inspectors,” he said, pointing out that the inspectors working in the USA were “brothers in arms” with the oil industry.
For inspections to be effective they had to be done with utmost autonomy, he argued.
He said the move for better safety procedures needed to be a global one but the EU should be at the forefront.