Safety, Health & Risk Management In O&G Industry

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

Safety and Health Management System in Oil and Gas Industry

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:

Safety and Injury Hazards
Health and Illnesses Hazards

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:

Identifying the risks
Evaluating and prioritizing the risks
Implementing preventive/protective measures to control the risk

There are a number of circumstances in the Oil and Gas industry where a proper risk management process is essential. For example:

Job safety analysis: It is a process of systematically evaluating certain jobs, tasks, processes or procedures and eliminating or reducing the risks or hazards to As Low As Reasonably Practical (ALARP) in order to protect workers from injury or illness⁶
Workplace inspections and audits
Change management - identification of new hazards, introduction of new equipment/process, or regulatory needs

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

It should ensure safety of different operational sites by correctly mapping the business processes, risks, and controls involved in all the three segments (upstream, midstream and downstream) of Oil and Gas industry
It should enable workers to follow consistent health and safety practices
It should help in managing site inspections, permits, violations, lessons learned and best practices execution for Oil and Gas sector
It must be well documented (strategies and action plans) and should be easily understood and readily available to all the workers

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

It enables Oil and Gas industry in performing hazard identification, risk assessment and implementing various control methods
It ensures well-being of all the employees and thus contributes to a more inspired, and performance driven workforce
Regular risk assessment process helps in frequent tracking and monitoring of health and safety indicators (both leading and lagging).
Reduced costs associated with accidents and incidents
Improved regulatory compliance
Implementation of OSH management system gives competitive edge and improves relationships between stakeholders, such as clients, contractors, subcontractors, consultants, suppliers, employees and unions

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

http://en.wikipedia.org/wiki/Paraguan%C3%A1_Refinery_Complex
http://en.wikipedia.org/wiki/Deepwater_Horizon_explosion
Draft National Oil and Gas Extraction Agenda - August 2010: For Occupational Safety and Health Research and Practice in the U.S. Oil and Gas Extraction Industry - Developed by the NORA Oil and Gas Extraction Council (http://www.cdc.gov/niosh/nora/comment/agendas/oilgas/)
http://www.cdc.gov/niosh/programs/oilgas/projects.html
http://www.cdc.gov/niosh/topics/confinedspace/
http://en.wikipedia.org/wiki/Job_safety_analysis
GLOBAL STRATEGY ON OCCUPATIONAL SAFETY AND HEALTH: Conclusions adopted by the International Labour Conference at its 91st Session, 2003 http://www.ilo.org/wcmsp5/groups/public/@ed_protect/@protrav/@ safework/documents/policy/wcms_107535.pdf
Guidelines on occupational safety and health management systems (ILO-OSH 2001) http://www.ilo.org/public/english/region/afpro/cairo/downloads/ wcms_107727.pdf
http://ec.europa.eu/energy/oil/offshore/standards_en.htm

About the Author

Neha Chauhan is a SAP EHS Consultant in the HSSE Practice of Energy and Utilities Vertical at Wipro. She has around five years of industrial and research experience, with a specialization in Environment Health and Safety Management, Regulatory Compliance and Toxicological Risk Assessments. She has given Solution Consulting to various Chemical and Oil and Gas companies for their Health & Safety and Compliance Requirements.

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