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Global safety trends rePort2014
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Overview
This report is designed to give an overview of the main trends and state of affairs in safety in the Oil and Gas industry. Information for this report comes from a variety of credible sources including reports, expert interviews, first-hand experience and desktop research.
By publishing this report, we hope to give safety practitioners a better overview of the key challenges, opportunities, new developments and trends shaping the industry. As the adage goes, well-informed is well-prepared.
Global Safety trendS in oil and GaS
Disclaimer
Mention of any company or product does not constitute endorsement by United Safety. In addition, citations to external Web sites do not constitute endorsement of the sponsoring organizations or their programs or products. Furthermore, United Safety is not responsible for the content of these Web sites. All Web addresses referenced in the document were accessible as of the publication date.
© United Safety November 2014
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Content
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Lack of Skilled Workers in the Oil and Gas industry.....................................4-9
Rise in Unconventional Oil and Gas
Local content requirements are on the rise
Growing proximity between oil facilities and communities
Rising number of frontier oil producing countries
Operational Excellence becoming increasingly important and institutionalized
Downward trend of fatalities and incidents but common causal factors prevail
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“ Employees are a company's greatest asset - they're your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company's mission.
Anne M. Mulcahy, former chairperson and CEO of Xerox Corporation
“
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rapid growth in the industry Oil and gas production activities are on the rise. The shale revolution in the United States, oil sands production in Canada, and advances in deepwater
production in the US, Mexico and Brazil has resulted in a spike of activities. To support the operations, the industry needs more workers. In the US,
the shale boom is predicted to create 2.7 million to 3.6 million net new jobs by 2020.1 In Brazil, Petrobras estimates that the need for workers will
increase by 21% from 2011 until 2015.2 In Canada, the Petroleum and Human Resources Council forecasts a shortage of around 9,500 people in
the Canadian oil and gas industry by 2015.3
As early as 2007, the Organization of the Petroleum Exporting Countries (OPEC) has expressed concern on the shortage of skilled labour for drilling,
engineering, procurement, construction and other services at its 8th International Oil Summit. OPEC also highlighted the downturn in the number
of students in universities and colleges taking science and math fields.4 As new unconventional ways of drilling are tested and implemented, the
need for skilled workers will be more evident. From rig workers to petroleum engineers, there’s more work to be done than there are workers to
perform it.5
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trend 1Lack of Skilled Workers in the Oil & Gas industry
.
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During the last 20 years, the Oil and Gas industry has experienced major modifications. Technological innovations
such as fracking and horizontal drilling have made shale, oil sands, high pressure and deep water extraction possible.
The implementation of such breakthroughs, however, requires specialists. The Oil and Gas industry is now facing one
of the largest skills gaps in any industry with 64% of all companies reporting concern over filling skilled job positions
in 2014.6 For instance, in July 2011 BP announced plans to invest 3 billion in redeveloping two oil fields in the North
Sea, a move that was expected to create hundreds of new jobs. BP’s North Sea head of operations however expressed
in an interview that getting hold of the right people is becoming a real issue for the company emphasizing that there
were not enough people with the “right skills” to fill industry demands.7
In the Middle East, there is significant recruiting and training investment throughout the whole industry value chain.
A huge skilled international workforce has sustained the industry for many years but national governments are
aggressively preparing the new generation of local workforce. Last year, Saudi Aramco paid for the education of
1,922 graduate and undergraduate Saudi students, including 1,138 in North America, 439 in Europe, and 217 in
Saudi Arabia itself. The company supports a College Preparatory Program that gives Saudi secondary-school graduates
the skills they need to succeed in international universities. To close the skills gap, they also run the equivalent of
community colleges that give thousands of Saudi young people the technical skills they need for employment in
partnership with local and international higher-education institutions.8
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the need for highly specified and skilled workers
. SCoPe
7
Unlike most industries, the age of retirement in the Oil and Gas industry is 55. According to the Interstate
Oil and Gas Compact Commission, the average age of industrial workers today is between 46 and 49.
This leaves the industry with around 7 to 10 years before more than half the senior workforce leaves for
retirement.9 Moreover, a study conducted by Schlumberger Business Consulting projected an outflow of
more than 22,000 senior key petro-technical professionals (PTPs) by 2015.10 The recruitment of younger
petro-technical professionals (PTPs) will not only fall short in filling this gap, but this workforce demography
is also likely to increase the risk of accidents as young workers lack familiarity with basic worksite procedures
and lack experience to recognize when a situation is dangerous.11
The lack of skilled workers has pushed International Oil Companies into investing millions in training
programs. In certain parts of the globe, the development of talent is hindered by political and technical
issues. In Argentina, labor issues force the loss of millions of barrels per day regularly and Brazil is faced with
the same complex labor issues. In the long term, only a sustained program attracting school students at an
early age into science, engineering and technology education and skills development, with concerted efforts
from the NOCs and IOCs will solve the problem across the globe.12
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Senior workforce departing
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Preparing for the great crew change. The shortage of experienced
workers in the field leaves the industry with a higher percentage of inexperienced
workers who tend to take the easier (not necessarily safer) way of doing things.
Industry reports have indicated that workers under the age of 25 are more likely to
be injured on the job than older workers.13 Driven by a desire to maintain their self-
image, they are likely to choose not to use safety equipment and are often unwilling
to ask questions.14 Thus, efforts to facilitate opportunities for young workers to
sustain increasing workforce demand need to be balanced with efforts to protect
them from work-related injury and illness.15
learning and development in the digital age. The challenge
that has become evident in recent times is the huge gap between safety training
and the skills required for the young workers once they are at the worksite. With
the ongoing rapid recruitment of young engineers and other technical workers, the
industry requires flexible and highly efficient training delivery options such as blended
learning and social marketing.16 These tools will help young workers cope with the
complex processes and procedures used aboard drilling rigs and production platforms
without slowing down operations. Safety programs and information materials need
to be made available online and should be designed to be more interactive to reach
and be consumed by the digital savvy young workers.
How doeS tHiS influenCe HSe?
laCk of Skilled workerS Globally
Africa
Australia
America
ArgentinaBrazil
MiddleEast
MozambiqueGhanaKenya
in short of
shale boom
Labor issues force
Saudi Aramco
Companies will have to hire expatriates who will train the local workforce to be able to support the operations.
2.7 million to 3.6 million net
new jobs by 2020
loss of millions of barrels per day regularly
Paid for the education of 1,922 graduate and undergraduate students
personnel to improve its gas related activities.
150,000
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1 Edward Morse, Energy 2020: North America, the New Middle East? Commodities Research and Strategy, Citigroup, March 20, 2012. Pp. 3-6.
2 National Organization of the Petroleum Industry. Growing demand for trained workforce in the Brazilian oil and gas industries, Aberdeen, April 10, 2012.
3 Christopher Campitelli, “Why is there a Skills Shortage in Canada?” LinkedIn, July 17, 2014.
4 Mohamed Hamel, “Meeting Oil Industry Challenges: An OPEC Perspective” (speech delivered at the 8th International Oil Summit in Paris, France, 5 April 2007).
5 Crisis in the Oil and Gas Industry - strategy+business, http://www.strategy-business.com/article/li00003?gko=d0843_br (accessed November 3, 2014).
6 Tim Low, "The Crisis Facing Oil and Gas: Finding Skilled Workers in the Face of Growing Demand." Oil Gas Monitor. June 21, 2013. Accessed November 2, 2014.
http://www.oilgasmonitor.com/the-crisis-facing-oil-and-gas-finding-skilled-workers-in-the-face-of-growing-demand/5370/
7 "BP North Sea Operations Hampered by Shortage of Engineers." Professional Engineering Magazine, August 15, 2013.
http://www.imeche.org/news/engineering/bp-north-sea-operations-hampered-by-shortage-of-engineers
8 David L. Wheeler, "A Saudi Oil Giant Sees the Future in Education." The Chronicle of Higher Education. February 8, 2011. Accessed November 2, 2014.
http://chronicle.com/article/A-Saudi-Oil-Giant-Sees-the/126301/.
9 "Manpower Shortages." Interstate Oil and Gas Compact Commission. Accessed May 7, 2014. http://iogcc.ok.gov/manpower-shortages.
10 Schlumberger Business Consulting. SBC 2011 Oil & Gas HR Benchmark . Paris, 2012.
11 "Out with the Old and In with the New (Petroleum Workers)." Oil and Gas Investments Bulletin. October 17, 2011.
http://oilandgas-investments.com/2011/top-stories/out-with-the-old-and-in-with-the-new-petroleum-workers/.
12 Air Energy and Oil Careers. Oil & Gas Workforce Survey. 2013. http://oilcareers.com/content/downloads/blogs/workforce_survey_h1_2013.pdf
13 Loughlin, C. & Barling, J. (2001). Young workers' work values, attitudes, and behaviours. Journal of Occupational and Organizational Psychology, 74, 543-558.
14 Mullen, J. (2004). Investigating factors that influence individual safety behaviour at work. Journal of Safety Research, 275-285.
15 "Health and Safety of Young Workers." www.cdc.gov. May 1, 2013. Accessed August 12, 2014. http://www.cdc.gov/niosh/docs/2013-144/pdfs/2013-144.pdf.
16 Elie Daher, New Learning Methods to Connect with the New Generation of Young Workers in the Oil and Gas Industry”
(paper presented at the IADC/SPE Asia Pacific Drilling Technology Conference and Exhibition Bangkok, Thailand, 25–27 August 2014).
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what is ‘local content’?
‘Local content’ refers to the added value brought to a host nation or region locally through workforce development (employment and training of
local workforce) and investments in supplier development (developing and procuring supplies and services locally).1,2
‘Local content’ is becoming an increasingly important area of focus for Oil and Gas companies. About 90% of new hydrocarbon production in
the next 20 years will come from developing countries.3 Many developing oil producing countries are introducing stronger requirements for ‘local
content’ as part of their regulatory framework. Even in some oil producing countries where ‘local content’ is not mandated, non-official and ‘soft’
methods are used to motivate service providers into choosing local people and suppliers. For example, although there is no mandated percentage of
local content in Angola, the utilization of expatriate workers would make it extremely difficult to remain competitive. When delivering services with
tight margins, the sustainable success of any organization will be heavily dependent on local content factors.
trend 2LOCAL CONTENT REQUIREMENTS ON THE RISE
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“ “The best way to counteract criticism about what you are doing in a particular region is to demonstrate the value that you are bringing in terms of employment, skills, supply chain development and capabilities to those local communities.
Doug Johnston, Partner, Climate Change and Sustainability at Ernst & Young, UK
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why local content?
The key objectives of local content requirements are to ensure job creation, talent and skill enhancement, and the transfer of
technology to the host country and its local citizens. With the increasing demand for local content, there are vast opportunities
and challenges that face both companies entering foreign markets and stakeholders within host countries. For international
operators, local content offers an opportunity to help develop local businesses and personnel while running operations in a more
cost-effective manner. For host nations, it opens up a wide range of opportunities that would otherwise not be present while
also providing an impetus to develop local infrastructure and related industries. On the flip side, drawbacks include unrealistic
expectations and targets that could make an operation unsustainable. To ensure a successful local content strategy, long term
commitment is essential.
where is it becoming increasingly important?
Local content is becoming increasingly important in the more developed Oil and Gas regions of Africa like Angola, Congo,
Nigeria, South Africa, Libya, Tunisia and Egypt. It is also gaining much traction in oil producing regions in the Middle East like
Saudi Arabia, Iraq and Oman.
SCoPe .
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How doeS tHiS influenCe HSe?.Skilled labor. One of the key challenges of local content is to find suitably skilled labor. If there is a legal
requirement for a certain percentage of people from the workforce to be local, there has to be a strong system and
structure in place to ensure that the local component of the safety team are trained to perform at the same level
of skill and expertise as the expatriate workforce. The importance of thorough onboarding, on-the-job training and
continuous testing cannot be over-emphasized in these situations. Any compromise in quality of the local people
hired for safety roles will immediately result in a reduction of safety standards on the job site.
education levels. Local education standards may vary and may not be at the same level of the expat. This
has to be taken into consideration and clear, focused training materials with the local population in mind have to be
designed. In some instances, some international companies actually invest in schools and educational facilities from
which they eventually hire their local talent to ensure the basic educational qualifications of their candidates and
inculcate the right ‘safety’ attitudes and behaviors from an early age. Training can range from short-term language
and technical courses to advanced scholarship schemes.
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language and cultural differences. The expat workforce needs to ‘understand’ the
local culture and put things into the local context. This is a slow process of immersion that takes place
at various levels over a long period. Expat managers need to clearly understand that their attitudes
towards safety could be completely different from that of the locals that they are working with; clear
expectations and ground rules for mutually accepted safety behavior need to be set and continuously
taught, encouraged, embraced and adhered to. This will go a long way to ‘educate’ locals on
the international companies’ accepted standards and operating procedures for safety. Language
barriers also need to be navigated, understood and taken into consideration to ensure that there is
no misunderstanding between what is being said and what is being understood.4
Supplier development. Safety isn’t just the responsibility of a safety officer, the more
involved all stakeholders get, the safer the entire operations become. With this in mind, including
local firms in the supply chain is an integral aspect of local content. Procurement strategies need to
be modified to foster development of local suppliers where possible and applicable. This will ensure
that foreign companies can tap into the suppliers’ firsthand knowledge of issues and standards of
safety equipment while making them partners in championing safer and profitable operations for all
concerned, thus resulting in a calculated win-win for all.
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1 "Executive Summary." In Local Content Strategy: A Guidance Document for the Oil and Gas Industry, 36.
London: International Petroleum Industry Conservation Association, 2011.
2 Esteves, Ana Maria, Bruce Coyne, and Ana Moreno. "Local Content Initiatives: Enhancing the Subnational Benefits of the
Oil, Gas and Mining Sectors." Resource Governance. July 1, 2013. Accessed June 3, 2014.
http://www.resourcegovernance.org/sites/default/files/RWI_Sub_Enhance_Benefits_EN_20131118.pdf.
3 "The Changing Role of National Oil Companies in International Energy Markets." Baker Institute Polic Report, no. 25 (2007).
Accessed July 1, 2014. http://bakerinstitute.org/media/files/Research/5be0c5c4/BI_PolicyReport_35.pd
4 Elie Daher and Dave Critchley, “Excellence in Safety has no Multicultural Barriers: A Case Study” (paper presented at the SPE
Americas E&P Health, Safety, Security and Environmental Conference in Galve4ston, Texas, USA 18-20 March 2013).
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Technology breakthroughs in exploration and drilling methods have helped make the quest for unconventional Oil and Gas possible, but they also
come with unknown and often greater safety risks. This trend studies the impact of unconventional drilling on HSE.
Spurred by growth in Asia and Middle East, the US Energy Information Administration projects that liquid fuel consumption will rise 38% by
2040 from 87 million barrels per day (MMbbl/d) in 2010 to 119 MMbbl/d in 2040.1 Oil and Gas companies are looking for reserves in distant and
inhospitable locations, stepping into tougher operating environments, many of which were technologically and economically unviable in the past.
Remote, environmentally and geologically challenging locations require huge capital expenditure in technology, infrastructure and supply chain.
trend 3Rise in Unconventional Oil and Gas
.38% 2040119,000,000
the international energy agency estimates
oil supply will have to rise
barrels of oil a day byto
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“ “For investors, the unconventional drilling boom is the gift that keeps on giving. Despite the recent record productions gains, more could be in store for the energy industry as new techniques continue to unearth more oil and natural gas.
Aaron Levitt, Investment Journalist, Society of American Business Editors and Writers
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Horizontal drilling and hydraulic fracturing or fracking which enhances fluid removal and well productivity have improved oil recovery and made exploration possible in shale fields. In
2000, shale gas provided only 1% of the US natural gas production; by 2010, its contribution was over 20 percent. The industry expects that by 2035, 46% of the country’s natural gas
supply will come from shale gas.2
In Canada, the oil sands industry has developed in situ production processes called Steam Assisted Gravity Drainage (SAGD), Toe to Heel Air Injection (THAI™) technology and Vapor
Extraction Process (VAPEX). Currently the most preferred technology, SAGD uses natural gas to heat water into steam that is pumped through a horizontal well underground to heat and
loosen the bitumen.3 The THAI™ technology system involves igniting air injected into a vertical well while VAPEX involves injecting solvent into the oil sands.4
Despite the risks, deepwater and ultra deepwater drilling is spreading from the Gulf of Mexico into the Mediterranean and off the coast of East Africa after a string of huge discoveries
of natural gas.5 To mitigate risks, the offshore industry integrates managed pressure drilling and other state-of-the-art technologies in deepwater geomechanics, drilling navigation and
well placement and cementing.
The U.S. Geological Survey estimates the Arctic region has 90 billion barrels of undiscovered oil resources and 44 billion barrels of natural liquid gas.6 More than half of Russia’s oil
production comes from its Western Siberian Basin while Alaska’s crude oil production accounts for 7% of total US production.7 Environmental impact of exploration and extremely high
costs has kept progress in this area. The eight countries that share the Arctic Circle - Canada, Denmark (Greenland), Finland, Iceland, Norway, Russia, Sweden, and the United States are
keen on tapping into the region’s oil producing capacity.
new SourCeS of oil & GaS
SHale fieldS
oil SandS
deePwaterdrillinG
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3
iMPaCt on HSe new MetHodS
1000'S of acres of land to be cleared High fresh water consumption A risk of water contamination.
Horizontal drilling
frackinggreenhouse gas emissionsDisturbance of mined landImpact on wildlife and air and water quality
greenhouse gas emissionsImpact on marine lifePlanned and unplanned waste discharges
SCoPe .
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regulating a rapidly evolving industry. Shale gas extraction operations are often in remote rural areas. As
such, worksites are required to be fully capable of handling emergencies such as fires, blowouts and hydrogen sulfide exposures.
Occupational hazards include exposure of truck drivers to large amounts of silica. Studies by the Center for Diseases Control and
Prevention’s National Institute for Occupational Safety and Health (NIOSH) show that high exposures to silica may cause silicosis and
lung cancer in the long term. Employers are required to control dust exposures by improving existing engineering controls and safe
work practices. Recommended practices include wetting the sand, enclosing points where dust is released including cabs, booths
and vehicles and providing respiratory protection when necessary.8 There is also a heightened risk factor associated with exposure
to Hydrochloric Acid (acid fracking) and the potential for fire due to large volumes of diesel fuel required to operate the fracking
equipment. Given the young age of the industry (about 20 years old in the United States and ten years in Canada), frameworks for
managing the risks posed by shale gas development are now being developed in these countries.9
importance of monitoring and research. Oil sands worksites present potential risks because people operate
heavy equipment and may be exposed to hazardous substances.10 The Canadian industry created ENFORM to provide safety alerts,
assist in the development of industry-recommended practices and audit the safety practices of companies. Most oil sands products
are transported via pipeline. However, a sharp increase in the use of rail and marine transport is expected while new pipelines are
constructed.11 This increases the risk of oil spills during transport underscoring the importance of safe driving, trip management
and proactive monitoring of driver fatigue as well as oil spill response and contingency plans.
How does this influence HSe? .
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improved offshore safety. The biggest risk in deepwater production comes from
unplanned discharges. Malfunctioning valves, corrosion, blowouts and human errors can lead to
fatalities and oil spills.12 Due to the isolation of deep water rigs, blowouts and spills take longer
to control. In 2012, the American Petroleum Institute (API) created a center for safety to ensure
rigorous audits and enforcement of best practices in offshore operational integrity.13 Well design
practices which were previously voluntary have become mandatory. Third-party inspections and
certifications are also necessary for every stage of the drilling process, and blowout preventers have
to be certified to meet new standards for testing and maintenance.14
tapping into the last frontier. Greenland passed its first offshore drilling legislation
in 2010 to set higher requirements for offshore drilling in Arctic waters. Greenland’s requirements
include ice handling programs and an exceptional two rig policy that demands companies install
two drilling rigs for every well. The purpose of the second rig is to reduce the time needed to
mobilize a rig to drill an emergency relief well.15 In December 2011, Canada also set safety and
environmental requirements for offshore drilling in Canadian Arctic waters requiring companies
to demonstrate their capacity to complete a relief well and cap a blowout in the same season.16
Culture of innovation. The future trends of exploration are diverse and will demand a
wide variety of skills, new technology development and an open dialogue and transparency between
stakeholders.17 The industry is already making efforts in the right direction - funding innovation
projects to develop new procedures and technologies to increase safety in unconventional drilling.
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1 "U.S. Energy Information Administration - EIA - Independent Statistics and Analysis." Press Room. September 14, 2014. Accessed June 2, 2014.
2 Stevens, Paul. "The ‘Shale Gas Revolution’: Developments and Changes." Http://www.chathamhouse.org/. August 1, 2012. Accessed May 4, 2014.
3 "A Revolution in Heavy Oil Technology ." A Revolution in Heavy Oil Technology. Accessed May 2, 2014. Canadian Association of Petroleum Producers.
http://www.capp.ca/energySupply/innovationStories/Water/Pages/undergroundCombustion.aspx
4 "In Situ Methods Used in the Oil Sands." Regional Aquatics Monitoring Program (RAMP). Accessed April 2, 2014.
5 Clifford Krauss, “Deepwater Oil Drilling Picks Up Again as BP Disaster Fades,” The New York Times, March 4, 2012.
http://www.nytimes.com/2012/03/05/business/deepwater-oil-drilling-accelerates-as-bp-disaster-fades.html?_r=0
6 US Geological Survey, “90 Billion Barrels of Oil and 1,670 Trillion Cubic Feet of Natural Gas Assessed in the Arctic,“News release, 23 July 2008,
http://www.usgs.gov/newsroom/article.asp?ID=1980
7 Beauregard-Tellier Frédéric. The Arctic: Hydrocarbon resources. Ottawa, Canada. Library of Parliament, 2008.
8 "Hazard Alert - Worker Exposure to Silica during Hydraulic Fracturing." May 23, 2012. Www.osha.gov. Accessed July 3, 2014.
https://www.osha.gov/dts/hazardalerts/hydraulic_frac_hazard_alert.html.
9 "Conclusions." In Environmental Impacts of Shale Gas Extraction in Canada, 292. Ottawa, Canada: Council of Canadian Academies, 2014.
10 "Safety." Oil Sands Today. Canadian Association of Petroleum Producers. Accessed April 10, 2014.
11 Crosby, S. et.al. 2013. Transporting Alberta Oil Sands Products: Defining the Issues and Assessing the Risks. U.S. Dept. of Commerce, NOAA Technical
Memorandum NOS OR^R 43. Seattle, WA: Emergency Response Division, NOAA. 153 pp.
12 Alberto Serna Martin. Deeper and Colder. The Impacts and Risks of Deepwater and Arctic Hydrocarbon Development. Sustainalytics. March 2012.
http://www.sustainalytics.com/sites/default/files/unconventional-oil-and-gas-arctic-drilling_0.pdf
13 American Petroleum Institute. “COS FAQs.” Center for Offshore Safety.
http://www.centerforoffshoresafety.org/faqs.html (accessed January 26, 2014).
14 Bromwich, Michael. "Guest Editorial Offshore Drilling and Public Service." Journal of Petroleum Technology, July 1, 2011.
15 Martin, “Deeper and Colder. The Impacts and Risks of Deepwater and Arctic Hydrocarbon Development.”
16 Martin, “Deeper and Colder. The Impacts and Risks of Deepwater and Arctic Hydrocarbon Development.”
17 Daly, Michael. "Future Trends in Global Oil and Gas Exploration." BP. September 23, 2013. Accessed June 2, 2014.
http://www.bp.com/en/global/corporate/press/speeches/future-trends-in-global-oil-and-gas-exploration.html.
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“ “Few men realize that their life, the very essence of their character, their capabilities and their audacities, are only the expression of their belief in the safety of their surroundings.
Joseph Conrad, Author, Heart of Darkness
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One of the most concerning issues deriving from the proximity between Oil and Gas facilities and the population is unplanned exposure to potential
wellbore effluent. During the drilling and production process of Oil and Gas, toxic gas may be released into the atmosphere. Sources include fleeing
emissions from leaking tubes, valves, tanks, open pits, well blowouts, and flaring.1 There is one toxic gas that stands out in the Oil and Gas industry:
H2S. When operating critical wells (high pressure and H2S content), there is always a risk of uncontrolled sour gas releases. When H2S escapes to the
surface, it has the potential to quickly disperse, reaching nearby worksites and communities. Exposure to H2S can have serious effects ranging from
lasting physiological and neurological impairment to death.2
trend 4Increased proximity between Oil and Gas facilities and communities
. the expansion of the oil and Gas industry comes with the inevitable co-existence with communities. Several HSe concerns result from this proximity.
24
SCoPe
How to protect your surrounding community
The first line of defense is running operations as safely as possible to prevent incidents. Safety personnel ensuring compliance with safety policies
and adequate safety equipment need to be on site. If there is toxic gas present in drilling, production or refining operations, companies need to
ensure all workers are oriented on site-specific hazards, emergency muster points, evacuation procedures, and that only properly-trained people
can access critical zones within the facility.3
Nonetheless, even with precautionary measures in place, unplanned releases may still happen. In order to minimize external impact, companies
need to work on community protection. Companies determine the reach of a potential release through dispersion modeling. As toxic gas
leaks in the air, solar heating/radiative cooling determined by cloud coverage and latitude from the equator, wind speed and direction, surface
roughness, terrain and height from the ground are all factors that affect where the plume is headed and whether it will reach a populated area
with a concentration that is harmful to the community.4 The result of the dispersion study determines an Emergency Planning Zone (EPZ). This
area has to be carefully delineated to ensure the safety of the public near the site.
Based on the specific characteristics of the EPZ, an EPZ Monitoring Plan and an Emergency Response Plan (ERP) are crafted. The execution of the
EPZ Monitoring Plan requires incredible coordination to be effective.5
.
Map of Emergency Planning Zone
25
How doeS tHiS influenCe HSe?.
early warning and notification. In the event
of a release the ERP will be executed. The ERP contains details
on emergency levels and required actions, responsibilities of
company and local authorities, evacuation and sheltering
places, ignition procedures, resident information, maps
and more. Some best practices identified were warning
systems and auto ignition system setup. Warning and public
alarm systems that are both visible and audible ensure
early notification so a timely community evacuation can be
performed.8 Immediate ignition procedures have proved
to be the best action to reduce the impact of a blowout.
Ignition converts the H2S to sulphur dioxide, which disperses
more effectively.9
The Oil and Gas industry has come a long way drilling horizontal wells and mastering sophisticated technologies, and thus has no excuse to falter over simple
processes and fundamentals.6 Technology failures with fatal outcomes can be prevented by employing better processes, equipment and trained personnel.
Gas monitoring and public protection. An emerging trend in community protection is the integration of communication technology such as
wireless, GPRS or Wimax to gas monitoring systems and public alarm systems to get the right information at the right time to the right people. Data such as gas
readings, wind speed, wind direction, GPS coordinates, unit identification (location) and distances from project/work site or other designated points are transmitted
through wireless technology to the base which in turn processes and averages data to help wellsite safety supervisors make well-timed decisions.7
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Public relations and evacuation. Drilling any critical sour well
within a relatively densely populated area poses daunting community relations
issues. Before a crisis occurs, it is important to establish good internal and
external relationships with employees, the public, and stakeholders. A crisis
communications plan is required and tested during drills. It is important that
communities receive air monitoring data and activities schedules regularly,
establishing confidence in the functionality of the safety program.10 Another
best practice identified is a Resident Information Package with a brief summary
of the proposed activities, evacuation and ignition procedures, emergency
telephone numbers and a description of the hazards of the toxic gases present.11
Setting a new benchmark for community protection. With the help of new solutions to community protection and by being proactive
and implementing the right mix of technology, processes and qualified personnel,
ensuring the monitoring and safety of surrounding communities does not have
to be a costly damage control exercise for operators. By establishing a working
relationship with a dedicated safety solutions provider to lead the safety program
implementation, operators can win the support of local communities and keep
operations running smoothly.12
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1 "Sources of Oil and Gas Air Pollution." Earthworks. Accessed May 5, 2014.
http://www.earthworksaction.org/issues/detail/sources_of_oil_and_gas_air_pollution#.VFYGyvmUeBI.
2 "Safety and Health Topics | Hydrogen Sulfide - Hazards." Occupational Safety & Health Administration. Accessed May 4, 2014.
https://www.osha.gov/SLTC/hydrogensulfide/hazards.html.
3 "Safety and Health Topics | Hydrogen Sulfide - Evaluating and Controlling Exposure."
Safety and Health Topics | Hydrogen Sulfide - Evaluating and Controlling Exposure. Accessed May 3, 2014.
https://www.osha.gov/SLTC/hydrogensulfide/exposure.html.
4 Elie Daher, “Application of Quantitative Risk Assessment for Planning High Sour Wells or Working in an H2S Field Close to Populated Areas” (paper presented at the SPE APPEA
International Conference on Health, Safety, and Environment in Oil and Gas Exploration and Production, Perth, Australia, September 11-13, 2012).
5 Allen C. Duke, “Emergency Response for Toxic Gas Release Incidents” (paper presented at the Middle East Health, Safety Security, and Environment Conference and Exhibition,
Abu Dhabi, UAE, 2-4 April 2012).
6 Elie Daher, Darrell Dowd, Don Pye and Bob Wicker “Ensuring Safety of Residents in an Emergency Planning Zone While Maintaining Sensitive Public Relations with the Affected
Residents - Best Practices Shared” (paper presented at the International Petroleum Technology Conference, Doha, Qatar, 20–22 January, 2014).
7 Daher et al., “Ensuring Safety of Residents in an Emergency Planning Zone While Maintaining Sensitive Public Relations with the Affected Residents - Best Practices Shared”.
8 Daher et al., “Ensuring Safety of Residents in an Emergency Planning Zone While Maintaining Sensitive Public Relations with the Affected Residents - Best Practices Shared”.
9 "Gas Well Blowout in Gao Qiao, Chongqing, China." United Nations Environment Programme. Accessed March 2, 2014.
http://www.unep.fr/scp/xsp/disaster/casestudies/china/gaoqiao.htm#impacts.
10 Katelyn Smith, “Best Practices for Effective Corporate Crisis Management: A Breakdown of Crisis Stages Through the Utilization of Case Studies”
(Senior Project, California Polytechnic State University, 2012).
11 Daher et al., “Ensuring Safety of Residents in an Emergency Planning Zone While Maintaining Sensitive Public Relations with the Affected Residents - Best Practices Shared”.
12 Hughes Warwick Stanley, Andrea Ferrante and Elie Daher, "Ensuring the Safety of Onsite Personnel and Neighboring Community During Workover and Well-testing Activities
with a High H2S Risk Potential - A Case Study" (paper presented at the Society of Petroleum Engineers Annual Technical Conference and Exhibition, Amsterdam, The
Netherlands, 27-29 October 2014.
2822
Over the last few years, new Oil and Gas reserves have been discovered in East and West Africa, as well as Latin America and Southeast Asia. Powered
by advances in technologies, business processes and the pressure to supply increasing demand, Oil and Gas operators are now looking at countries
previously regarded as too difficult or too politically unstable.
In Southeast Asia, Oil and Gas reserves have been found in China and India. Vietnam, Malaysia, Thailand, and Myanmmar are also expected to
emerge as Oil and Gas producing countries. The West African offshore oil boom has spurred exploration activities in offshore East Africa. Studies are
now being conducted in Uganda, Tanzania, Mozambique, Kenya and Ghana to prepare for the promises of an oil boom. In South America, oil has
been discovered off the Falkland Islands while Puerto Rico and Peru are expected to start oil production soon.
trend 5Rising number of frontier oil producing countries
. approaching frontier countries with grace, tact and a strong safety culture
29 823
“ “When a country discovers oil, the first challenge it faces is the need to manage the expectations of its citizens.
John O. Kakonge, Ambassador/Permanent Representative of the Republic of Kenya to the United Nations in Geneva
29
30
regulatory frameworks and political constraints
Across Africa and Asia, governments are stepping up efforts to formulate regulatory frameworks for their Oil and Gas industry. Tanzania plans to present a new natural gas bill
to parliament in November 2014 while Uganda is gearing up for the next oil licensing round in 2015 after an 8-year freeze to draw up a legislative framework for its Oil and
Gas industry.1,2 Last year, with U.S. and European Union sanctions lifted and political and economic reforms underway, Myanmar awarded ten deepwater and ten shallow-water
offshore blocks to several foreign and domestic companies.3 After months of street protests in Thailand that ousted the elected government, the ruling military is offering new
concessions for 29 exploration areas.4
Stakeholder relationshipsIn 2012, Mozambique emerged as a new
giant in natural gas. Major Oil and Gas
companies rushed to Mozambique to gain
exclusive rights in the country’s exploration
and production blocks.5 Mozambique aims to
be the first country in East Africa to develop
the capability to export liquefied natural
gas (LNG), possibly followed by Tanzania.6
However, surges of attacks by rebels in
Mozambique have rattled investors while
violent protests are happening in Tanzania
with local stakeholders demanding a greater
share of the oil wealth.7
SCoPe.
Southeast Asia Petroleum Proved Reserves (Billion Barrels) Natural Gas Proved Reserves (Billion Cubic Feet)
Vietnam 4.40 24.70 trillion cubic feet
Malaysia 4.00 83.00 trillion cubic feet
Thailand 0.45 10.06 trillion cubic feet
Myanmar 0.05 10.00 trillion cubic feet
East Africa
Uganda 2.50 0.50 trillion cubic feet
Tanzania 0.00 0.23 trillion cubic feet
Mozambique 0.00 4.50 trillion cubic feet
Ghana 0.66 0.80 trillion cubic feet
South America
Argentina 2.81 11.74 trillion cubic feet
Chile 0.15 3.46 trillion cubic feet
Peru 0.58 12.70 trillion cubic feet
frontier Countries
31
Companies often face complex situations in frontier countries where governments are still in the process of developing
industry frameworks and agencies are still evolving. Operational risks in frontier countries can be minimized through the
application of industry best practices such as the following:
workforce development. When required, a nationalization program can be put in place with a strong
emphasis on training the local workforce to practice international safety standards. Through a rigorous process of
recruiting, competency assessment, training, and coaching, companies can ramp up the national workforce. Where the
lack of education is a concern, personnel can be selected based on attitude instead of experience and education. To do
this, a competency testing is conducted to ensure that personnel are a match to the job. On-going training will allow
local personnel to understand that commitment and hard work would benefit them in the future and help them advance
their careers.
understanding the local context. Language barrier is a prominent challenge when recruiting and
starting up operations in frontier countries. It is recommended that training materials be redesigned to suit various
levels of knowledge with an emphasis on visual aids and practical exercises. Care should be taken to ensure that basic
communication levels are established between management and personnel. Thus, foreign supervisors also have to learn
the cultural differences and the various behavior safety styles in terms of expectations, tolerance of risk and other safety
factors observed by the local workforce. It is critical to ensure that company standards and safe work practices are
adhered to irrespective of differences.
. How doeS tHiS influenCe HSe?
31
32
Conducting responsible business. Frontier countries are often in transition and
do not have clear frameworks to govern the industry. International companies will do well by
bringing with them responsible business practices and company policies. A strong commitment
to regulations such as the U.S. Foreign Corrupt Practices Act or the UK Anti-Bribery Act can
become an effective risk mitigation strategy. This may mean initial delays in obtaining licenses
and going through a painful process of developing and vetting local suppliers but the long term
benefits of transparent business transactions far outweigh the initial cost.
Creating sustainable social investments. Political and social instability is
a feature of many countries where there are large Oil and Gas resources.8 Building strong
stakeholder relationships and initiating strategic social investment programs in immediate
communities can become a way to combat risks associated with conflict and social unrest. From
bricks and mortar to soft skills and livelihood programs to boosting local governance capacities,
strategic social investments will help build sustainable business in frontier countries.9
32
33
1 Nicholas Bariyo, June 2, 2014. Tanzania Steps Up effort to Develop Oil and Gas Sector. The Wall Street Journal. http://blogs.wsj.com/frontiers/2014/06/02/tanzania-steps-up-effort-to-develop-oil-gas-sector/
2 Nicholas Bariyo, June 3, 2014. Uganda Set to Award New Oil Exploration Licenses in 2015. The Wall Street Journal. http://online.wsj.com/articles/uganda-set-to-award-new-oil-exploration-licenses-in-2015-1401793334
3 Burma Country Analysis. US EIA. http://www.eia.gov/countries/country-data.cfm?fips=BM&trk=m
4 Warangkana Chomchuen. Thailand Offers New Concessions for Oil and Gas Exploration. The Wall Street Journal. October 22, 2014. http://online.wsj.com/articles/thailand-offers-oil-and-gas-concessions-1413978172
5 "Natural Gas Reserves Estimates." In Mozambique: The Emergence of a Giant in Natural Gas, 31. London: SPTEC Advisory, 2013.
6 "Emerging East Africa Energy Overview." www.eia.gov. May 23, 2013. Accessed August 14, 2014. http://www.eia.gov/countries/analysisbriefs/East_Africa/eeae.pdf.
7 Jacinta Moran. "East Africa: An Oil and Gas Boom with Big Challenges." The Barrel Blog. November 29, 2013. Accessed August 14, 2014.
8 Managing Social Risks and Impacts | IPIECA." Http://www.ipieca.org. January 1, 2013. Accessed August 14, 2014.
9 Managing Social Risks and Impacts | IPIECA." Http://www.ipieca.org. January 1, 2013. Accessed August 14, 2014.
33
34
The Oil and Gas industry has faced a number of major incidents over the years. Between 1955 and 2010 there were more than 44 notable blowouts
worldwide.1 These have resulted in human, economic and environmental disasters and led to heated debates regarding the safety and sustainability of
the industry.
In the aftermath of disasters, governments rush to revise Oil and Gas laws and regulations to set more stringent rules based on findings of post-incident
investigations that reveal weaknesses and safety gaps. In fact, the strict sour gas drilling administration of countries such as Canada and the UK were
born after disasters.
trend 6Operational Excellence becoming increasingly important and institutionalized
. increased risks and public pressure pushes industry to adopt operational excellence framework
35
“ “There is ample evidence from past accidents that prevention is better than cure.
Janez Potocnik , Environment Commissioner, European Commision
35
36
A number of factors and chain of events can lead to disasters. These range from reckless safety practices or non-compliance, lack of government oversight, and
human or technical errors. Clearly, the best time to prepare for a disaster should be before it happens with a strong emphasis on preventing it from happening.
Lessons learned from these incidents indicate the growing need to implement Operational Excellence, a higher order of operational safety that complements
productivity, cost efficiency and continuous improvement.
role of regulators After the 2010 Deepwater Horizon accident, the American Petroleum Institute created a center for safety to ensure rigorous audits and enforcement of best
practices in offshore operational integrity.2 The European Commission proposed a regulation on safety of offshore Oil and Gas prospecting, exploration and
production activities.3 Oman and New Zealand passed legislation to strengthen their standards on critical safety and environmental regulations.4,5
role of operatorsInternational oil companies such as Chevron and ExxonMobil have pioneered the adoption and implementation of Operational Excellence. Chevron supports a
culture of safety and environmental stewardship and uses the stop-work authority; by which every employee and contractor have the right and responsibility
to stop work upon noticing an unsafe act or condition.6 ExxonMobil reports that since implementing their Operational Excellence framework, their SSH&E
performance has improved substantially reducing industry-leading lost-time incident rates, environmental risks, marine spills and emissions.7
SCoPe.
37
. How does this influence HSe?
Chevron's oe model
exxonMobil's oiMS model
Strict regulatory regime. Already, governments across the globe are creating
regulatory bodies dedicated solely to monitoring the Oil and Gas industry encompassing all stages
of operations. Regulators are involved in the review and approval or disapproval of permits. At
any time, they may inspect operations and audit operator HSE management systems to ensure
structural integrity and workplace safety.8 Critical to this heightened role is the need to analyze
leading and lagging safety metrics which could prove crucial in preventing disasters and update
regulations.
operational safety and integrity. It is recommended that operators apply rigorous
safety in design through multi-barriers. Safety experts also recommend adopting a life cycle-based
or risk-based performance approach using only best-in-class certified equipment and promoting
high safety culture through continuous improvement.9 A strong relationship with immediate
communities can be developed by being transparent about operational risks at all levels of operation
and demonstrating competence in emergency response by training workers and conducting public
drills.
reliable emergency response. In the context of blowout incidents, regulators should
be at the helm reviewing and approving the safety and feasibility of spill response and containment
plans. A strong recommendation in the US is the need to elevate the commitment to scientific
research among regulators and increase consultations with scientific bodies.10 Having seen the
huge impact of oil spills to the environment and communities, operators need to substantiate
emergency or contingency plans by allocating resources and capacities before a disaster happens.
adopting operational excellence. The need to develop and implement regulatory
policies and guidelines using industry-recognized standards and the urgency to adopt operational
excellence (OE) has never been greater. Projects will be executed through a structured approach by
adopting an operational excellence framework. Founded upon a continuous cycle of improvement,
OE will help the industry achieve sustainable improvement, develop organizational leadership and
commit towards long-term safety culture change.
37
38
1 Davis, Mark. “Legal Legacy of Deep Water Horizon.” Washington and Lee Journal of Energy, Climate, and the Environment 155 (2012): Volume 3, Issue 3.
Washington and Lee University School of Law.
http://law.wlu.edu/deptimages/journal%20of%20energy,%20climate,%20and%20the%20environment/FullIssue.pdf
2 American Petroleum Institute. “COS FAQs.” Center for Offshore Safety. http://www.centerforoffshoresafety.org/faqs.html (accessed January 26, 2014).
3 Popovici, Vlad. "EU develops regulatory response to Macondo oil spill." – Offshore Magazine. PennWell Corporation, 1 May 2012. Web. 25 Jan. 2014.
<http://www.offshore-mag.com/articles/print/volume-72/issue-5/government-regulations-certifications/eu-develops-regulatory-response-to-macondo-oil-spill.html>.
4 Rose, Edward. "Oman's New Oil and Gas Law." Journal of Energy & Natural Resources Law 29, no. 4 (2011): 499.
http://www.ibanet.org/Publications/jerl.aspx (accessed January 26, 2014).
5 APN New Zealand Limited. "New rules for ocean oil exploration." The New Zealand Herald.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10747184
6 Chevron Corporation. “2012 Corporate Responsibility Report.” http://www.chevron.com/documents/pdf/corporateresponsibility/chevron_cr_report_2012.pdf
7 ExxonMobil Corporation. “Operations Integrity Management System.” July 2009. www.exxonmobil.com/Corporate/Files/OIMS_Framework_Brochure.pdf
8 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, “Report to the President”, January 2011.
9 Christou, Michalis and Myrto Knonstantinidou, Safety of offshore oil and gas operations: Lessons from past accident analysis, Luxembourg: European Union, 2012.
10 Beinecke, Frances. "Have We Learned the Lessons from Deepwater Horizon? (Op-Ed)." LiveScience. TechMedia Network, 29 July 2013. Web. 06 Oct. 2014.
http://www.livescience.com/38518-gulf-oil-lessons-still-not-learned.html
38
39
The International Association of Oil & Gas Producers (OGP)
in its 2012 Safety Performance Indicators report showed that
the Fatal Accident Rate has fallen in the last ten years.1 OGP
also highlighted that since 2007 lost time injury frequency has
plateaued.2 This trend studies the types of injuries reported and
what the industry can do to prevent these common incidents.
OGP collects safety incident data from its member companies
and maintains the largest database of safety performance in
the exploration and production (E&P) industry. In 2004, 37
companies contributed their safety reports covering operations
in 78 countries with 2, 290 million work hours.3 For the 2013
report, data was provided by 50 companies with operations in
110 countries covering 3,771 million work hours.
far, ltif and trir Combined table
trend 7Downward trend of fatalities and incidents but common causal factors prevail
. issue
0
1
2
3
4
5
6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FAR
LTI
TRIR
40
“ “Oil and Gas workers have some of the most dangerous jobs in the country. In fact, about 4.2 percent of all Oil and Gas workers are hurt on the job each year.
Pat Maloney, Personal Injury Lawyer, USA
40
41
SCoPe
OGP’s 2013 Safety Performance Indicators report that the number of fatalities has
decreased from 120 in 2004 to 80 in 2013, which is a decrease from the Fatal
Accident Rate (FAR) of 5.24 in 2004 down to 2.12 in 2013.4 The most number
of fatalities are due to transportation accidents such as helicopter crashes, vehicle
collisions and water transport. Technical advances have curbed gas leaks and
explosions from happening but when it does, it causes tremendous loss of life
among the workforce. Exposure to toxic gas during maintenance, inspection and
testing activities are also a leading cause of fatalities. Terror attacks such as the
incident in Algeria in 2013 are a possible threat to the industry.
fatal accident rate table
Comparative data in Lost Time Injury Frequency from 2004 to 2013 also showed that
there is a general trend towards lesser incidents both onshore and offshore. In 2005,
for the first time on record, the overall Lost Time Injury Frequency fell below 1.00.5
This has been carried on in the succeeding years confirming the industry-wide effort
to provide safer workplaces and the strict implementation of safe work practices.
Cases of ‘Struck by’, ‘Caught in, under or between’, and ‘Slips, Trips and Falls’ on the
same level cause the most number of lost time incidents. In 2013, for example, these
top three common incidents accounted for 69% of all lost time incidents.
lost time incident rate table
.
41
0
1
2
3
4
5
6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FAR
LTI
TRIR
0
1
2
3
4
5
6
7
2004 2005 2005 2006 2007 2008 2009 2010 2011 2012
Overall
Onshore
42
Looking at the safety indicators by regions, it is evident that there is a decreasing trend of Fatal Accident Rate, Lost Time Incidents and Total
Recordable Injury Rate per million hours worked. It can be noted that a single disaster can cause an increase in a region’s FAR. In 2009, a UK air
transport incident involving a helicopter that was inbound from an oil field caused 16 fatalities.6 In 2012, an upsurge in North America’s FAR can
be attributed to the effect of a gas leak and explosion following the loss of mechanical integrity of a pipeline in Mexico causing 31 fatalities.7
Fatal Accident Rate (FAR) The number of company/contractor fatalities per 100 million hours worked.
Lost Time Injury Frequency (LTIF) The number of lost time injuries (fatalities + lost work day cases) per 1 000 000 hours worked.
Total Recordable Injury Rate (TRIR) The number of recordable injurties (fatalities + lost work day cases + restricted work day cases +medical treatment cases) per 1 000 000 hours worked.
far 5-year rolling average* Per million hours worked
ltif 5-year rolling average* Per million hours worked
*The five year rolling average is calculated by summing the total number of incidents of five previous years, and dividing by the sum of the work hours for these years. The number series involved in the calculation is frame shifted along by one each year, e.g. 2011 will calculate from 2007-2011.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
2008 2009 2010 2011 2012 2013
Africa Asia/Australasia Europe FSU Middle East North America South & Central America
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2008 2009 2010 2011 2012 2013
Africa Asia/Australasia Europe FSU Middle East North America South & Central America
4343
improving industry reporting. OGP has made improvements to the data collection and
reporting systems in an effort to gather detailed information including the root causes and corrective
measures associated with the reported fatalities and significant incidents. This is aimed at improving the
learnings organizations gain from incidents other organisations have experienced.
Since 2010, OGP included a causal factors analysis of the safety performance indicators they collect.
Causal factors were classified into two categories:
1. Acts done by people
2. Conditions or processes that are out of control by personnel
There are four major activities under the people classification while there are five major activities under
the process category.
Causal factors analysis. From 2010 to 2013, OGP notes that five factors appear consistently in
the top ten for both fatal incidents and high potential events. Four of the top five causal factors are related
to following processes or procedures.
*Figures in brackets are the number of times the causal factor was cited in high potential events.
Causal Factors Description 2013 2012 2012 2010
Process (conditions) Organizational, inadequate training/ competence 21 (29) 13 (36) 10 (15) 13 (22)
People (acts) Inattention/Lack of awareness: Improper decision making or lack of judgment
16 (24) 11 (38) 16 (21) 14 (23)
Process (conditions) Organizational: Inadequate work standards/procedures
15 (44) 15 (54) 8 (20) 10 (37)
Process (conditions) Organizational: Inadequate supervision 14 (24) 16 (44) 18 (18) 18 (31)
Process (conditions) Organizational: Inadequate hazard identification or risk assessment
13 (35) 17 (61) 15 (24) 30 (47)
. How does this influence HSe?
44
target zero harm. A look at the ten-year Total Recordable Injury Rate indicates that International Oil Companies wherever they operate or in partnership with National Oil Companies have been able to implement their HSE management systems. In recent years, the industry has expanded in regions and remote areas where even the most basic infrastructure to support safety systems are not in place. To successfully operate in these areas, large capital investments are required from the operators including investments in HSE.
Safety performance and the bottomline. By developing and sharing good industry practices and being transparent in areas that need to be improved, the industry continues to take steps forward towards sustainability. As any industry expert would know, there is a direct positive correlation between investment in safety, health, and environmental performance and its subsequent return on investment.8 Safety investments pay off in the long run. However, investments alone are not enough; a shared safety culture that’s driven by the top management and embraced by the entire organization is the true key to improving the industry’s safety performance over time.
total recordable injury rate (trir) 10-year rolling average Per million hours worked
0
1
2
3
4
5
6
7
8
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Africa Asia/Australasia Europe FSU Middle East South & Central America North America
4527
45
1 "New OGP Report Shows 10-year Positive Upstream Safety Trend." New OGP Report Shows 10-year Positive Upstream Safety Trend. June 30, 2013. Accessed May 5, 2014.
2 "OGP Safety Performance Indicators 2013 Data." www.ogp.org.uk. August 1, 2014. Accessed October 10, 2014.
3 "OGP Safety Performance Indicators 2004 Data." Www.ogp.org.uk. May 31, 2005. Accessed October 10, 2014.
4 "OGP Safety Performance Indicators 2013 Data." www.ogp.org.uk. August 1, 2014. Accessed October 10, 2014.
5 "OGP Safety Performance Indicators 2005 Data." Www.ogp.org.uk. May 2006. Accessed October 10, 2014.
6 "OGP Safety Performance Indicators 2009 Data." Www.ogp.org.uk. May 2010. Accessed October 10, 2014.
7 "OGP Safety Performance Indicators 2012 Data." Www.ogp.org.uk. June 2013. Accessed October 10, 2014.
8 "White Paper Addressing the Return on Investment for Safety, Health, and Environment (SH&E) Management Programs." American Society of Safety Engineers. January 1, 2014. Accessed October 15, 2014.
46
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