1. Introduction
Safety and health management is one of the vital constituents of Oil and Gas industry activities because most of the operational conditions, chemicals and end products (hydrocarbons and other compounds) associated with Oil and Gas production are well-known to pose serious safety and health threats to the workers.
2. Industry Overview
Fig.1.Segments of Oil and Gas industry
On 25 August 2012, an explosion caused by the ignition of a leaking gas at the Amuay oil refinery, which is part of the Paraguana Refinery Complex, killed 48 people; primarily National Guard troops stationed at the plant, and injured 151 others1 .
The Deepwater Horizon drilling rig explosion refers to the April 20, 2010 explosion and subsequent fire on the Deepwater Horizon semisubmersible Mobile Offshore Drilling Unit (MODU) killed 11 workers and injured 16 others2. The explosion caused the Deepwater Horizon to burn and sink, resulting in a massive offshore oil spill in the Gulf of Mexico, considered the largest accidental marine oil spill in the world, and the largest environmental disaster in U.S. history2.
According to the report developed by the NORA Oil and Gas Extraction Council; In the US, during 2003-2008, 648 oil and gas extraction workers were fatally injured on the job, resulting in an occupational fatality rate of 29.1 deaths per 100,000 workers – eight times higher than the rate for all U.S. workers. Nearly half of all fatal events in the Oil and Gas extraction industry resulted from highway crashes (29%) and workers struck by objects and equipment (20%)3.
The above alarming incident data clearly emphasizes the need for an effective occupational safety and health management system that integrates safety and health concerns into a daily routine.
People working in Oil and Gas industry are exposed to various risk factors. Hence continuous monitoring of their working conditions and well-being is essential. Health protocols and periodic medical checkup should be pre-defined and done for every worker depending on the job and work area type to identify possible deviations from the normal health and to confirm that necessary counteractive actions are taken in advance.
This paper outlines the key safety and health hazards associated with the upstream, midstream and downstream segments of Oil and Gas industry, including the significance, features, components and benefits of an effective Occupational Safety and Health Management System (OSHMS) for the industry.
3. Hazards Related to Oil and Gas Industry
Hazards in Oil and Gas industry can be divided into two broad categories:
3.1 Safety and Injury Hazards
Workers in Oil and Gas industry are generally susceptible to the following safety and injury hazards
3. 2 Health and Illnesses Hazards
Workers in Oil and Gas industry are generally susceptible to following agents which lead to various health and Illnesses hazards: chemical hazards (toxic, corrosive, carcinogens, asphyxiates, irritant and sensitizing substances); physical hazards (noise, vibration, radiations, extreme temperature); biological hazards (virus, parasites, bacteria); ergonomic hazards (manual handling activities, repetitive motions, awkward postures); and psychosocial hazards (overwork, odd working hours, isolated sites, violence).
The following table identifies the potential health effects from key processes in Oil and Gas industry:
4. Managing Occupational Safety and Health Risks
The aim of occupational safety and health risk management is to identify and assess safety and health hazards existing at the workplace and to define appropriate control and retrieval steps.
Business processes in Oil and Gas industry are very complex. Hence it is essential that a systematized approach should be used for managing occupational safety and health hazards. Its solution model can be based on the PDCA Cycle:
4.1. Risk Management Process
As stated earlier, risk management is crucial for preventing work related injury and illness. It includes:
There are a number of circumstances in the Oil and Gas industry where a proper risk management process is essential. For example:
Generally Risk Management Process in the Oil and Gas Industry Involves the Following Key Steps:
5. Occupational Safety and Health Management System (OSHMS)
The insinuation of implementing an occupational Safety and Health Management System at all workplaces came into limelight, when ‘Global Strategy on Occupational Safety and Health: Conclusions’ were adopted by the ‘International Labour Conference’ at its 91st session, 2003. The Strategy advocates the application of a systems approach to the management of national OSH systems7.
Also, Guidelines on Occupational Safety and Health Management Systems (ILO-OSH 2001) provide national/organizational framework for occupational Safety and Health Management Systems8. As per these guidelines, the OSH management system should contain the main elements of policy, organizing, planning and implementation, evaluation and action for improvement8.
5.1 Key Features that Should be Fulfilled by an Efficient Safety and Health Management System are as Follows
5.2 Components of an Effective Occupational Safety and Health Management System
Occupational Safety and Health Management System is one of the critical factors whose successful execution confirms operational safety in upstream, midstream and downstream segments of Oil and Gas industry.
Following key components should be encompassed in an active occupational Safety and Health Management System:
Sl.No |
OSHMS Components | Requirements |
---|---|---|
1 | Health and Safety Plan |
Oil and Gas Company’s vision and approach towards Health and Safety |
2 | Administration |
Organizational hierarchy Key details of persons responsible for managing health and safety plans |
3 | Work Area Management |
Proper demarcation and management of workplace according to processes, activities, design, etc. Worksite inspections Implementation of best practices and lessons learned from the past experiences at workplace |
4 | H&S Risk Management |
Set of systems and processes for managing Health & Safety risks Job Hazard analysis Hazard ranking/risk matrix Corrective action plans Risk control levels analysis |
5 | Inventory Management |
Maintenance of hazardous substance database |
6 | Task and Workflow Management |
Calendar management Role assignments - Involving and informing workers, safety officers and others about their roles and responsibilities, allocated tasks, etc. Automated notifications
|
7 | H&S Maintenance Systems |
Performance and monitoring of H&S activities and corrective action as needed |
8 | Incident Management |
Recording, processing, investigation, reporting and root cause analysis of any reported incident/accident/near miss/safety observations |
9 | Occupational Health Management |
Health protocols Medical appointments Injury/Illness management Drug, alcohol and other medical testing |
10 | Management of Change |
Identification of new hazards Introduction of new equipment Process change New regulatory requirements |
11 | Emergency Response Plan |
Disaster management/Emergency response plan for all the potential predicaments based on predictive risk analysis Alarm system |
12 | Compliance Management |
Comply with the obligations under pertinent local/national/global H&S regulations |
13 | Competency Management |
Track capabilities/skills of workforce Trainings for employees, contractors and visitors Assessments |
14 | Content Management |
Management of SOP, SDS, Health and safety documents |
15 | Contractor Management |
Managing and coordinating activities of contractors |
16 | Rehabilitation Management |
Tracks number of compensation days, rehabilitation information of workers |
17 | Statistics, Reporting and Dashboard |
Relevant report generation from health and safety data Interactive dashboards for higher management view and decision making |
18 | Audit and Review |
Audit and review programs to check and improve the effectiveness of implemented Safety and Health Management System |
5.3 Benefits of Occupational Safety and Health Management System
6. Conclusion
Given the perilous nature of the Oil and Gas industry, the need for implementation of an efficient occupational Safety and Health Management System is important for improving safety and health performance. Many countries have extensively participated in it by making strict and obligatory OSH standards and legislations. For example, on 10th June 2013, the EU adopted a Directive on safety of offshore oil and gas operations9. The new directive sets clear rules that cover the whole lifecycle of all exploration and production activities from design to the final removal of an oil or gas installation9.
Because of the regulatory compliance pressure, the principal responsibility of ensuring operational safety and sustainability is placed on the Oil and Gas industry.
OSHMS not only provides a systematic and synchronized proactive approach to managing occupational health and safety risks, but also helps in defining strategies for implementing control actions, performance substantiation, resource mapping and competency management. Moreover it also helps in enhancing organization’s brand image in today’s competitive scenario.
References
Wipro helped an oil and gas major manage 50% of its production through a Collaborative Environment by enabling interfaces between disparate locations and teams.
e-commerce portal for Oil and Gas major to digitally engage with customers and personalize the relationship.
Wipro stepped in as the “thought-to-finish” partner for the O&G supermajor in this marquee demand sensing transformation program, delivered Proof of Concept (POC) to scale up across geographies and locations. The solution was piloted in the markets of West Europe and South East Asia.
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