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Safety in action, not just in words

It is not enough just to hold China National Petroleum Corp accountable for the Chongqing gas blast; the system is also to blame for the disaster. It is imperative to bring in a new system of supervising oil production, one which conforms to market principles and conditions in China.

The explosion in Chongqing municipality late on December 23 led to the release of a cloud of toxic hydrogen sulfide, killing 242 people and injuring more than 10,000. It is believed to be China's biggest industrial disaster and came at a time when the value of human life and the environment are gaining greater appreciation in society. Those responsible for the accident should not be forgiven.

The State Council has put together a 26-member team to investigate the accident, but it could prove to be a lengthy process. Xinhua and other media reports say the CNPC and its subsidiary are the prime culprits. This is the harsh fact we must confront, no matter how disheartening it is.

But obvious questions remain unanswered. Why did the disaster happen? How did things get out of control? Why were so many people living in the vicinity injured?

It might be difficult to provide a perfect answer to the first question, given the highly technical factors involved. Some experts suggest that the accident could have been averted, or at least that the impact could have been reduced if CNPC's Chuandong Drilling Company, which was in charge of exploration, had been operating properly. Other experts argue that the well is geographically complex, and a blast ought to be viewed as unexpected, and therefore beyond anyone's control.

Let us assume that the explosion was, indeed, unexpected. It is still difficult to understand why the drilling company was so unprepared for such a disaster. Realistically, even after the blast, the company should have been able to contain the situation and help local residents evacuate. This kind of preparation was completely absent.

Natural-gas exploration is a risky business. This is common knowledge in the industry. And, in fact, CNPC did put together a comprehensive package of safety measures. Workers on the drilling platform were supposed to be equipped with special breathing apparatus, and ambulances, doctors and nurses should have been available. Unfortunately, the measures, which were sound on paper, were not well-executed. Workers failed to wear their breathing apparatus, and there was a lack of medical attention. This poor implementation of safety measures greatly worsened the effects of the accident.

There must be economic reasons for the company's choice of a densely populated site for gas exploration. But once it made the decision, CNPC should have taken responsibility for protecting the local people and the environment. At the very least, it should have installed hydrogen sulfide monitors around the site, educated locals about the gas and drawn up detailed evacuation plans in the event of an accident. CNPC even has a special health and environment column on its website. However, once again, this awareness did not translate into action. With local people uninformed of the potential risks, an orderly evacuation was out of the question.

CNPC's problem is not isolated. It is closely related to China's inadequate system of enforcing oil and gas production safety measures. The root of the problem lies in the blurred boundaries between the government and the companies in this very traditional industry. Despite the fact that CNPC was restructured twice, in 1998 and 1999, and eventually went public, the old system remains intact. It takes a long time for mechanisms which are needed to be put in place.

When, finally, the oil industry's safety mechanisms are implemented, in line with market principles and China-specific conditions, it will nurture a healthier development of China's petroleum enterprises. Many people are suggesting that China should establish a ministry of energy, which could be part of this new mechanism.

On December 28, five days after the accident, Su Shulin, a CNPC vice-president, went to the Kaixian People's Hospital to apologise to and console local residents affected by the blast. He also said that the company would, through the local government, compensate the victims. Mr Su's stance indicates that CNPC is aware of its responsibility for the disaster. The company's president, Ma Fucai, did not show up.

CNPC has come a long way to make such public gestures, although it is still short of being a candid response. The company has to square up to its challenges as it further transforms into a modern enterprise.

Hu Shuli is editor of Caijing, a business magazine

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