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“How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop May 15, 2011 Seattle, WA

“How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

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Page 1: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

“How Industry Learns” --- Proposed Project ---

Karen Paulk, ConocoPhillips, Chair, Process Safety Group&

Ron Chittim, API

CRE Chairs & Sponsors WorkshopMay 15, 2011Seattle, WA

Page 2: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

• “We have a problem with the refinery industry,” (whose investigations of refinery accidents have uncovered a pattern of safety lapse)”

• “We have decreasing staff levels, disinvestment in safety, a lack of training, and accidents or near-misses — indicators of catastrophe — being ignored”

• “Serious incidents at refineries continue to occur at alarming frequency”

• “U.S. oil refiners are compromising mechanical integrity of their equipment by extending cycles on their plants”

• “Oil industry’s “run to failure” mentality”• “It’s all about the money - the refiners run the units longer to sell as

much product as possible”• “The large number of fatal or catastrophic incidents in the petroleum

refining industry indicates the need for a national emphasis program.”

Recent Media Quotes from CSB, USW & OSHA

Page 3: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

Problem Statement

• Public perception that refineries are not operating safely and responsibly

• Continued allegations by CSB, USW and others that refiners are not “serious” about safetyNot learning lessons from refinery incidentsAging refinery equipment

• Upcoming 2012 Labor negotiations Health & Safety will be a major focus of USW

• Refinery safety issue has some attention in Congress

Page 4: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

Proposed Project – How to Address Problem Statement • Focus is on safety first (vs. cost, business impact,

etc.)• Develop general statements to describe current

industry efforts• Develop specific statements with clear examples • Examples need to be impactful, highlight efforts and

must be easily understood• Consider both reactive and proactive efforts• Sustained “evergreen” effort

Address short-term need Develop longer-term plan to formalize effort

• Result – ready resource that describes “step-change” or significant efforts vs. incremental activities

Page 5: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

Resources & Information Needed to Address Problem Statement • Need input from CRE, PSG & SFPG - as part of standards

management efforts, consider identifying:o Improvements in safety or fill a safety gapo Responses to learnings from issues/incidents in

refineries o Significant steps taken to improve mechanical integrityo New provisions that monitor condition/prevent failure

by triggering maintenance/repair/replacemento Risk prevention & mitigation improvementso Other (?)

• CRE Sponsors & Subcommittee Chairs – communicate this project to task forces and encourage information collection per above

Page 6: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

Resources & Information Needed to Address Problem Statement • Contact other standards developing organizations and other

industry groups for examples of efforts to add to this project Probably consider as a Phase 2

• When appropriate, think beyond “standards” (e.g., training, certification, workshops, etc..)

• API staff will collect input and develop draft communications package for review and comment

• API staff and committee leadership to develop long-term structure

Page 7: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

• ”Network” of subject matter experts review, update, and strengthen industry standards for refinery maintenance, inspection, and repair

• Mechanical integrity is addressed through conformance with API equipment specific standards and recommended practices

• National and regional safety conferences where lessons-learned are shared among industry representatives

• API’s Inspector Certification Programs have certified about 8000 inspectors in U.S. employed by over 2000 companies

• API is collecting leading and lagging incident data per API RP 754 – Process Safety Performance Indicators

• Mechanical integrity of equipment is managed by condition, not age

What is Industry Doing to Address “How Industry Learns?”

General Statements – Work in Progress

Page 8: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

• PetroArch Database - sustainable documentation of the data that underpins the technical basis of many codes and standards

• API 510/570 Pressure Vessel and Piping - inclusion of MOC and internal/external auditing language

• API 580/581 Risk-Based Inspection - what, when, and how to inspect based on documented prioritization using consequence and probability

• API RP 584 Integrity Operating Windows – establishing damage avoidance parameters

• API RP 571 Damage Mechanisms - identification and effectiveness

• [add Process Safety and Fire & Safety examples]

What is Industry Doing to Address “How Industry Learns?”

Specific Efforts – Potential Examples - work in progress

(needs further explanation)

Page 9: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

Back Up Slides

Page 10: “How Industry Learns” --- Proposed Project --- Karen Paulk, ConocoPhillips, Chair, Process Safety Group & Ron Chittim, API CRE Chairs & Sponsors Workshop

• Implement a robust mechanical integrity programs with an emphasis on thorough inspections of critical equipment

• Monitor process safety performance using appropriate leading and lagging indicators to measure process safety before major accidents occur

• Maintain an open and trusting safety culture where near-misses and loss of containment incidents are reported and investigated

Dr. Moure-Eraso urges companies to take action to prevent accidents, including: