Cost of forgetting

Why are near-misses and emergency situations so expensive?

Every near-miss is different

The event is unique, every rig is unique, and the subsequent audit is unique. Therefore it is not easy to give exact figures for the costs of a near-miss. But we know which elements and processes are included in a near-miss audit and - importantly - the consequences of a near-miss situation offshore. We have calculated an average of 40.000 US$ per near-miss. Our calculation is based on our vast knowledge of the industry as well as in-depth research. It includes lost man-hours, production-stop, audit (internal and external consultancies), maintenance of equipment, and transportation (helicopter).

What does an accident cost?

As we all know in this industry, it is impossible to give a simple and exact answer to that question. An accident can be anything from a broken leg to a blow-out. That said, it is possible to make estimates and get an overview of the elements affected by an accident. And using the International Association of Drilling Contractors’ statements of lost man-hours (364,820,905.41 world-wide for the first three quarters of 2011 – not including all of the operators) - you get an idea of the vast amounts at stake. One element we have to emphasize is how accidents can evolve – and the risks of a minor event turning into a catastrophe. Virtual Simulation is not just about avoiding accidents (by reducing at-risk behavior). It is about getting situations under control before they evolve. A small kick can turn into a devastating catastrophe in a few minutes unless you have the necessary situation experience and communication skills. (just two of the vital elements that make team-oriented tasks successful).