Final API Standards Front Back Handout Design Benefits of Using API Standards Participation in API Standards ProcessFinal2
Final API Standards Front Back Handout Design Benefits of Using API Standards Participation in API Standards ProcessFinal2
API STANDARDS
MAXIMIZE SAFETY BOOST NATIONAL
AND ENVIRONMENTAL COMPETITIVENESS
PROTECTION API standards are used globally and are deployed by many
Regulators and companies that use API standards maximize safety regulators and operators to enhance operational integrity
and environmental protections through the use of equipment built throughout the industry. Adoption of API standards can help
to API specifications and operated according to API recommended nations better integrate with the global economy. Regulators can
practices. API standards development is accredited by the assist their natural gas and oil operators and suppliers by relying
American National Standards Institute (ANSI). Accreditation of API’s on international best practices. This allows for streamlined supply
standards program by ANSI signifies that the process API uses to chains and operations and can therefore boost the competitiveness
create standards is transparent, evidenced-based, and balanced, of a nation’s energy sector on the global stage.
and is driven by consensus by multi-stakeholder committees.
Policymakers and companies can trust that API standards meet the Moreover, using API standards helps policymakers ensure that
industry’s stringent performance criteria, with appropriate margins technical regulation complies with global trade rules. The World
for safety and environmental protection. Trade Organization (WTO) Agreement on Technical Barriers to Trade
requires that WTO members use international standards as a basis
• Real World Example: To enhance safety and environmental for technical regulation. This is also the case for most bilateral and
protection, numerous countries encourage natural gas and multilateral free trade agreements.
oil operators to use API standards in areas in which national
standards do not exist. India’s Ministry of Petroleum and • Real World Example: A study by the German National
Natural Gas has recommended that exploration and production Standards Body estimates that standardization drives 1% of
companies meet the guidelines laid out in 20 API standards on global GDP. This means that the natural gas and oil industry
preventative inspections and high-quality equipment. reduces costs due to harmonized standards in the sector
worldwide, thereby allowing companies to invest in Research
and Development and spur the creation of new technologies.
STREAMLINE COSTS AND
REDUCE COMPLEXITY • Real World Example: According to a study from the U.S.
Department of Commerce, one petrochemical manufacturer
While safeguarding against safety and environmental risk, API reduced costs by $2.5 million in one year by implementing an
standards reduce costs for regulators and operators by eliminating industry-developed risk-based inspection methodology for
the need for complex regulation. Rather than design and implement process equipment.
detailed regulations for equipment and processes, policymakers
can deploy API standards to provide safety, quality, and
interoperability for operators and equipment suppliers. Standards
written by the industry and referenced in government regulations
are invaluable because they reflect real world operating conditions.
Industry standards help make regulations more straightforward
and less onerous to implement, while still meeting the intended
purposes for regulation.