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Suggested Citation:"Appendix C: Disclosure of Unavoidable Conflicts of Interest." National Academies of Sciences, Engineering, and Medicine. 2023. Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico: Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout. Washington, DC: The National Academies Press. doi: 10.17226/26873.
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Appendix C

Disclosure of Unavoidable Conflicts of Interest

The conflict of interest policy of the National Academies of Sciences, Engineering, and Medicine (https://www.nationalacademies.org/about/institutional-policies-and-procedures) prohibits the appointment of an individual to a committee authoring a Consensus Study Report if the individual has a conflict of interest that is relevant to the task to be performed. An exception to this prohibition is permitted if the National Academies determine that the conflict is unavoidable and the conflict is publicly disclosed. A determination of a conflict of interest for an individual is not an assessment of that individual’s actual behavior or character or ability to act objectively despite the conflicting interest.

Dwight Johnston has a conflict of interest in relation to his service on the Committee on Progress and Opportunities Toward Decreasing the Risk of Offshore Energy Operations because he serves as a consultant for clients in the oil and gas industry and has financial holdings in energy companies that exceed $10,000 in value.

The National Academies have concluded that for this committee to accomplish the tasks for which it was established its membership must include at least one person who has current experience implementing safety management systems for the oil and gas industry. As described in his biographical summary, Mr. Johnston has extensive experience and specialized expertise in developing and implementing safety and environmental management systems and process safety management programs for the oil and gas industry.

The National Academies have determined that the experience and expertise of Mr. Johnston is needed for the committee to accomplish the

Suggested Citation:"Appendix C: Disclosure of Unavoidable Conflicts of Interest." National Academies of Sciences, Engineering, and Medicine. 2023. Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico: Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout. Washington, DC: The National Academies Press. doi: 10.17226/26873.
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task for which it has been established. The National Academies could not find another available individual with the equivalent experience and expertise who does not have a conflict of interest. Therefore, the National Academies have concluded that the conflict is unavoidable.

The National Academies believe that Mr. Johnston can serve effectively as a member of the committee, and the committee can produce an objective report, taking into account the composition of the committee, the work to be performed, and the procedures to be followed in completing the study.

Charles R. Williams II has a conflict of interest in relation to his service on the Committee on Progress and Opportunities Toward Decreasing the Risk of Offshore Energy Operations because he serves as a consultant to the Center for Offshore Safety (COS), which was created by the American Petroleum Institute in response to the Macondo oil spill of 2010. Mr. Williams retired as the Executive Director of COS in May 2020.

The National Academies have concluded that for this committee to accomplish the tasks for which it was established its membership must include at least one person who has current experience in industry-led changes in drilling engineering and technology designed to decrease the systemic risks of offshore oil and gas operations. As described in his biographical summary, Mr. Williams has extensive technical experience and specialized expertise in the development of offshore equipment, policies and procedures, and risk management for wells in extreme environments.

The National Academies have determined that the experience and expertise of Mr. Williams is needed for the committee to accomplish the task for which it has been established. The National Academies could not find another available individual with the equivalent experience and expertise who does not have a conflict of interest. Therefore, the National Academies have concluded that the conflict is unavoidable.

The National Academies believe that Mr. Williams can serve effectively as a member of the committee, and the committee can produce an objective report, taking into account the composition of the committee, the work to be performed, and the procedures to be followed in completing the study.

Suggested Citation:"Appendix C: Disclosure of Unavoidable Conflicts of Interest." National Academies of Sciences, Engineering, and Medicine. 2023. Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico: Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout. Washington, DC: The National Academies Press. doi: 10.17226/26873.
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Suggested Citation:"Appendix C: Disclosure of Unavoidable Conflicts of Interest." National Academies of Sciences, Engineering, and Medicine. 2023. Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico: Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout. Washington, DC: The National Academies Press. doi: 10.17226/26873.
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Page 222
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Most of the offshore oil and gas industry in the Gulf of Mexico has shown considerable improvement in systemic risk management, which is now approaching a middle stage of maturity across most risk elements. Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico: Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout assesses both industry and regulatory progress against the reforms that were recommended following the Deepwater Horizon disaster in 2010. The report also states that progress has been uneven, and critical gaps remain in comprehensively addressing the management of systemic risk offshore.

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