Piper Alpha

The explosion and fire aboard the Piper Alpha oil production platform twenty years ago today resulted in the loss of 167 lives. The worst off-shore oil rig disaster ever was an 'accident' waiting to happen. A contemporary account is to be found in the Socialist Standard of August 1988:

"..Speaking in the House of Commons in the immediate aftermath of the fire the Energy Secretary, Cecil Parkinson, said, "Safety is the first priority of the Government and the operators." This is not true. Certainly safety is the a very high priority, for accidents cause lost production and in the case of Piper Alpha this was on a massive scale. But safety is not top priority. What stops a company from ceasing trading - a poor health and safety record alone or simply a lack of profit? What the House of Commons should have heard from Parkinson is that safety takes second place - to production.

The unavoidable fact about capitalism is that profit ultimately dictates. This is as true for the very first days of the North sea oil boom as it is for the last days of Piper Alpha.

To relieve pressure on the balance of payments and raise tax revenues as quickly as possible, British governments of the 1960s and 1970s - both Labour and Tory - went out of their way to ensure that offshore oil reserves were exploited at the earliest opportunity, particularly following the oil crisis of 1973. In planning their exploitation and production schedules, the oil companies were therefore presented with few government restrictions. Just as capitalism forced companies to maximise productions and profits, so the state too, is required to put safety to one side when convenient. As the professor of Marine Technology at Strathclyde University put it, "the number one priority after the 1973 oil crisis was to get oil quickly, and you don't get a Rolls-Royce for the price of a Mini".

Like other platforms, the Piper Alpha was built at a fraction of the value that would be created once production started. It cost £530m and was in production for 12 years, during which it pimped approximately 1,000 million barrels of oil ashore. At the current (depressed) price that is the equivalent to some £10,000m. The cost of the platform and wages bill (about £20m per annum) over the period amounts to just a few per cent of the wealth created. In the UK sector of the North Sea some 1,500 million pounds worth of oil is pumped out per month, with the government making £300m in export revenue.

These figures give some indication of the vast fortunes to be made in the North Sea -not, needless to say, from working there but just by owning. It is in the context of the disaster appeal - £1m from both the Government and petty cash box of Occidental Petroleum - should be viewed.

Much is made of how well-paid the average offshore worker is. The average pay is between £200 and £600 a week for a very exhausting, anti-social and stressful lifestyle. If that is high pay, what can be said of Dr Armand Hammer, chairman of Occidental Petroleum and one of the richest men in North America? The present writer was offshore on 6 July, on a platform from which the Piper Alpha was just a faint glow fifty miles to the north. Talking with some of the oil-workers as increasingly alarming reports were coming in, the impression gained was far from the usual macho image of oil-workers. It's not bravery or stupidity that makes them work offshore, but simple necessity. As one man put it to me, "You don't like to think about it. You can't afford to think about it".

Workers have regularly had to die for oil. When "their" countries go to war over ownership of natural resources, workers are required to do the dirty work of killing and dying for companies like Texaco, ELF or Esso. It's much the same in "peacetime": the war to defend profitability, the battle to advance the share of the oil market, is fought on the front line oil platforms by members of the working class.

So we shouldn't be shocked at the latest casualty figures. Within 48 hours of the disaster, grieving Occidental accountants recovered their composure long enough to calculate the cost to the company would be about $25m, reducing the estimated profit for this financial year to $200m. Shareholders would have to bite the bullet and suffer the tragic loss of 5-10 cents a share.

It's not all black armbands in the City though. The fire which devastated the platform and did much the same to 170 families, prompted some ferocious trading in New York and London while still smoldering: "Crude prices jump on news of disaster". (Headline, Guardian 8 July). North sea oil prices, previously depressed by a production "glut" (how many OAP's died of hypothermia last winter?), immediately rose by 25 cents a barrel....

A sane society will not need to rely on governments, companies or authorities to enforce safety. Socialism will rip the price tags from everything and liberate the productive potential of the world...."

Brian Gardner