It doesn’t take long for even the most casual observer to understand the role health, safety and environmental (HSE) plays in the relationship between customers and suppliers in the oil and gas industry. Put simply, HSE performance is the first and last factor many consider when selecting an oilfield supplier.
In general, EnergyPoint’s data indicate customers’ satisfaction with suppliers in HSE-related areas remains strong. In fact, the last five years’ HSE scores are materially higher than for other satisfaction metrics. Moreover, despite overall satisfaction hitting a low point in 2006-07, HSE ratings remained in relatively good shape.
We hasten to note customers’ satisfaction with HSE is predominately a function of a supplier’s ability to operate safely and responsibly on a consistent basis. Paraphrasing a past respondent, “Satisfactory safety and environmental performance is an absolute pre-requisite and expectation. Although it does not guarantee a company will win our business, without it a supplier has no chance at all.”
Yet EnergyPoint’s research also indicates customers want suppliers to achieve high levels of HSE performance efficiently and realistically. While the preference between HSE record and the manner in which it is achieved leans toward a sound record, it is a balancing act nonetheless. Overly rigid or bureaucratic procedures that contribute little to HSE performance—or do not meld well with clients’ or own HSE practices—can result in lower satisfaction ratings.
In addition, suppliers rate better with customers in some aspects of HSE than others. For instance, customers’ ratings regarding the respect suppliers show toward customers’ HSE requirements are noticeably higher than ratings for suppliers’ in-house HSE practices.
Respondents were particularly apt to rate offshore drillers high for HSE performance, with Noble Drilling enjoying the best marks in the category. Helmerich & Payne garnered the top rating among land drillers.
Industry bellwether Schlumberger was top among oilfield service providers globally, as the company impressed with its organization-wide commitment to HSE (noteworthy given its breadth and size). Among equipment providers, Oceaneering rated best in terms of its products’ HSE features and performance.
Others registering standout HSE scores include Atwood Oceanics, ENSCO, Geoservices, KCA Deutag, M-I SWACO and Parker Drilling.
