Freeport LNG’s poor safety culture ($FT) ¹
Asia’s diesel margins fall to 11-month low
IEA chief warns of gas shortage next winter
Pakistan/Bangladesh hit by expensive LNG
China becomes major LNG reseller ($BBG)
CFTC reports still disrupted by cyber attack
U.S. construction worker shortages ($FT)
Semiconductor prices fall by a third ($BBG)
China/Russia diplomatic ties deepen ($WSJ)
U.S./China espionage history review ($FT)
¹ Freeport LNG suffered a catastrophic failure after multiple safety systems failed and personnel ignored warning signs and lost situational awareness about the state of the plant. The resulting explosion is a classic example of what James Reason called an “organisational accident” – multiple systems should have prevented an incident but they were allowed to erode because of a poor internal safety culture leading to a rapid increase in risk (“Managing the risks of organisational accidents”, Reason, 1997).
Reason’s book is one of the best I have read on any topic, offering powerful insights in an engaging and accessible way. He provides a general framework for understanding why many catastrophic industrial and transportation failures happen. Everyone operating critical systems and machinery should be required to read it as part of their training. I can strongly recommend it to everyone else who is interested in safety, reliability and resilience systems.
U.S. OIL AND GAS drilling rates have stalled in response to the slump in prices since the third quarter of 2022. There has been no net increase in the number of active rigs (760) for the last 31 weeks: