Imperfect detection of spills: A case study in U.S. onshore oil drilling

Abstract

This paper specifies and estimates regression models to test several hypotheses about the operational and managerial drivers of pollution in a multi-rig onshore drilling organization. In addition to conventional models, detection-controlled models are also specified to explicitly control for the potential for imperfect reporting. The results suggest that continuity in operations and supervision act to reduce the likelihood of pollution. Additional variables such as site complexity are also significant. The results are largely consistent with related research on personal safety incidents. While the analysis was completed for one organization in one geographic area, the results may be applicable to similar regions and organizations. The results can be used to drive decisions regarding operating practices and managerial policies.