Inspection & Corrosion Control

Difference Between a Standard, Code & Regulation in Oil & Gas Industry?

Code Standard Regulation

Engineers, inspectors, contractors, and others working in the oil and gas industry must use a variety of codes, standards, and other resources to complete their work. But have you ever thought about the differences between a standard, a code and regulation? What about the fact that they are totally unrelated to any specifications or regulations?

Continue reading below for clarification on how each term differs from the others and how they are all related.

What is a Standard, a Code and a Regulation ?

¤ Standard: What Exactly a Standard ?

A standard is simply a series of “how-to” instructions for designers and manufacturers, or it might be a set of technical definitions and principles. It outlines every necessity for the operation, service, and product.

The standard will be used by a designer to create the product, and a manufacturer will use it to create the product.

For defining product quality and establishing safety standards, standards act as a shared language. Some examples of the standard are ASME, ASTM, API, and ISO. There are more than 12000 ASTM standards, which essentially cover everything. According to the ASTM website, they have standards for everything from toys to airplanes.

Why is a standard considered necessary?

Take a mobile phone charger as an example. You will need an adaptor to use your charger if you are traveling to an Asian country from the USA. This is due to the fact that each nation has its own standards for power outlets. However, because they are made in accordance with the widely recognized standard, your USB cables will function wherever in the globe.

In the case of the process sector, piping components are supplied from all over the world; regardless of their countries of origin, we want all of these materials to fit together flawlessly on site. Standard help to achieve these;

  • By defining standard engineering or technical specifications for goods, procedures, techniques, or processes that the manufacturer must adhere to when producing piping components.
  • Standard Increased User Confidence in Product Quality
  • Due to the ability to produce in large quantities for international markets, standardization will lower manufacturing costs.

ASME API CODE Standard Regulation

¤ Code: What Exactly a Code ?

A code is a set of rules that serve as generally accepted guidelines that are recommended for the industry to follow. The standard will become a code whenever it is accepted by governing bodies, when it becomes a part of a commercial contract, or when it is made legally enforceable. It may take months or even years for a local government to adopt a code after carefully reviewing it to make sure it is appropriate and suitable for the area.

In many US states, ASME Codes are enforceable by law. While they are not legally binding in other parts of the world, other nations have their own equivalent codes.

Please be aware that the criteria listed in the code will only be necessary if

  • A regulatory authority declares the Code to be law.
  • It is a stipulation in the business agreement.

If not, the Code will be used as the established standard for design, fabrication, construction, and installation. However, in addition to their national norm, almost every process facility also adheres to numerous American codes and standards.

The ASME Boiler and Pressure Vessel Code, BS, DIN, and other codes are examples of the codes.

Why is a code required ?

Code offers a collection of guidelines that outline the minimal standard of quality and safety that applies to produced, fabricated, or built goods.

In order to get the specifics on any additional needs that are not covered by the code, codes may additionally make reference to standards or specifications.

¤ Regulation: What Exactly a Regulation ?

An official authority has mandated a regulation, and individuals who work in the sector are obligated by law to abide by it. The rule may include codes or standards or it may stand alone entirely. A regulation does not necessarily need to be adopted by the industry as a whole or by a reputable group, unlike a code or standard.

The oil and gas industry is highly regulated at multiple levels of government. Regulatory compliance is a complex procedure for oil and gas service companies that demands accuracy. Companies frequently have to meet the requirements of multiple regulatory bodies.

Not every type of regulation needs to be imposed or enforced by the government. Many professions adopt self-regulation, which entails creating and upholding norms that are generally agreed upon for the mutual benefit of members. Self-regulation can be used to uphold ethical standards, professional standing, and education. They may also serve as a means of establishing prices, limiting access, and outlawing particular behaviors (e.g., advertising in order to restrict competition).

Why is a Regulation required ?

Oil and gas operations have been regulated in a variety of ways for more than a century. Regulation aims to protect the environment (including the quality of the air and water), cultural resources, the health and safety of workers and the general public, and reduce resource waste.

Conclusion

It’s critical to adhere to the guidelines, standards, specifications, and regulations that are either advised or mandated by law when it comes to facility oil and gas sector protection. Let’s review what we’ve defined thus far:

Codes are approved sets of guidelines that specify what you must do.

Standards explain “how to” carry out codes.

Regulations are imposed by a government entity and must be followed by law. They may include codes and standards.

Knowing the difference between Standard, Code and Regulation is very important if you are working in Oil & Gas Industries.

If you have any doubts or require assistance, you may ask me through my email at [email protected]

Thank you, Have a nice day.

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