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Safety, economic incentives and insurance in the Norwegian petroleum industry

Author

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  • Osmundsen, Petter
  • Aven, Terje
  • Erik Vinnem, Jan

Abstract

There is an increased use of key performance indicators and incentive schemes in the petroleum industry. Applying modern incentive theory, we explore what implications this management trend has for injury and major accident prevention efforts and safety. Can economic incentives be designed for accident prevention activities? In cases where this is not possible, what are the challenges for the safety efforts? In particular, how are safety efforts affected by enhanced economic incentives for other performance dimensions like production and rate of return? Can safety be neglected? What remedies are available?

Suggested Citation

  • Osmundsen, Petter & Aven, Terje & Erik Vinnem, Jan, 2008. "Safety, economic incentives and insurance in the Norwegian petroleum industry," Reliability Engineering and System Safety, Elsevier, vol. 93(1), pages 137-143.
    • Handle: RePEc:eee:reensy:v:93:y:2008:i:1:p:137-143
    DOI: 10.1016/j.ress.2006.11.008
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    Cited by:

    1. Emre Akyuz & Hristos Karahalios & Metin Celik, 2015. "Assessment of the maritime labour convention compliance using balanced scorecard and analytic hierarchy process approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(2), pages 145-162, February.
    2. Jun Tu & Liangdong Wan & Zijiao Sun, 2023. "Safety Improvement of Sustainable Coal Transportation in Mines: A Contract Design Perspective," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Skogdalen, Jon Espen & Vinnem, Jan Erik, 2012. "Combining precursor incidents investigations and QRA in oil and gas industry," Reliability Engineering and System Safety, Elsevier, vol. 101(C), pages 48-58.

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