Warren Buffett-courtesy wikipedia & Mark Hirschey

“It takes 20 years to build a reputation and 5 minutes to ruin it.”
                                                                                     by Warren Buffet

Warren Buffet, known as the Oracle of Omaha for his investing prowess, has looked into a lot of companies to see which ones among other things had solid reputations.

In the oil industry, reputation is key when it comes to earning and holding on to a social license to operate. With so many eyes focused on operators, just waiting for them to make a mistake, it’s important business practices are above reproach, the equipment works the way it should and the environment and workers are protected.

Case in point, a recent pipeline leak in northern Alberta. Early in July or possibly late June, a pipeline burst dumping 5-million litres of a bitumen and water mixture into swamp land. It sounds like a huge amount, but in simpler terms it is the equivalent of two Olympic size swimming pools covering an area about the same size as two soccer fields. Still about 5-million more litres than you want to hit the ground.

Nexen oil spill-courtesy Global News

Nexen oil spill-courtesy Global News

Once discovered the headlines read:
– China-owned pipeline leaks 5 million liters of oil emulsion in western Canada (RT)
– ‘It makes me feel sick’: Local First Nations survey Nexen pipeline spill damage (CTV)
– Recent Spills Give More Reason to Move Beyond Oil (Natural Resources Defense Council)
– Dead duck found at Alberta site of Nexen pipeline spill (Edmonton Journal)
– Nexen spill: New pipelines not always safer, investigator says (CBC)
– Nexen pipeline may have been leaking for over two weeks (The Globe and Mail)

There was also these – Nexen apologizes for spill from Canada oil sands pipeline (Reuters)
– Nexen CEO toured site and personally apologized for damage (CBC)

Nexen tried to get in front of the story by apologizing, but which headlines do you think really got noticed by the public?
The company involved had touted its leak detection system. The one it turned out failed and now the finger pointing is underway.

Mistakes in the oil and gas industry are not only financially costly, but reputations and years of good practices can be wiped out by one incident. Pipelines have their issues, drilling rigs theirs.

Oil rig workers-courtesy Huffington Post

Oil rig workers-courtesy Huffington Post

According to Drilling Contractor:
• By occupation, the floorman position suffered the largest percentage of injuries.
• By body part, fingers were still the most vulnerable part of the body.
• By incident type, “struck by”, “caught between” and “slipping” accounts for the most incidents.
• By far the most injuries in drilling operations occur on the rig floor

There is also the issue of protecting the environment from drilling fluids and other contaminants.
Protecting both workers and the environment is what Katch Kan does and has been doing for 20 years.
Let us help you preserve your reputation with our Rig Safety System and Zero Spill System. You worked hard to get that reputation rely on our hard work to help you maintain it and enable you to be a stand out in the industry.