Safety & Environmental Risk Management: Borrowing from the Past to Enhance Knowledge for The Future
Keywords:
safety risk, environmental risk, deep water horizon, deep-water drilling, feedback from crisis
Abstract
The oil and gas industry is facing more and more challenges in the latest decades. Indeed, as oil and gas became more difficult to be found, new areas are targeted, as deep water offshore or more hostile environments like Alaska. These involve high technology industry and imply deep uncertainty. Thus, the application of classical approaches of risk management is limited, as shown by major safety and environmental oil disasters like the Deep Water Horizon Accident. This paper analyses the later as a case study, to discuss the complexity of safety and environmental risk management in deep-water drilling. Given this complexity, the paper will also analyse how feedback from previous accidents can improve knowledge, and change the perception and thus the way safety and environmental risks are managed in deep-water drilling. The findings of the paper contribute to development of risk management policy and risk decision making.
References
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AlKazimi, M. A., & Katiem G. (2015). Investigating New Risk Reduction and Mitigation In The Oil And Gas Industry. Journal of Loss Prevention in the Process Industries, 34, 196-208. https://doi.org/10.1016/j.jlp.2015.02.003
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Baker, J., Bowman, F., Erwin, G., Gorton, S., Hendershot, D., & Leveson, N. (2007). The Report of the BP US Refineries Independent Safety Review Panel.
Bendor, J. B. (1985). Parallel Systems: Redundancy in Government. University of California Press, Berkeley, CA.
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Cox LAT (2012). Confronting deep uncertainties in risk analysis. Risk Anal., 32, 1607–29. https://doi.org/10.1111/j.1539-6924.2012.01792.x
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Hopkins, A. (2011). Management Walk-Arounds: Lessons from The Gulf of Mexico Oil Well Blowout. Safety Science 49(10), 1421-1425. https://doi.org/10.1016/j.ssci.2011.06.002
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Huczynski, A. A., & Buchanan, D. A. (1991). Organizational Behaviour, Prentice-Hall, Hemel Hempstead. International Journal of Mass Emergencies and Disasters, 16, 13-43.
Kalantarnia, M., Khan, F., & Hawboldt, K. (2009). Dynamic risk assessment using failure assessment and Bayesian theory. J Loss Prev Process Ind, 22, 600-606. https://doi.org/10.1016/j.jlp.2009.04.006
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Kjellén, U. (2000). Prevention of Accidents through Experience Feedback. Taylor & Francis, London.
LaPorte, T. R., & Consolini, P. M. (1991). Working in practice but not in theory: theoretical challenges of high-reliability organizations. Journal of Public Administration Research and Theory, 1(1), 19–47.
Lempert, R. J. (2002). A new decision sciences for complex systems. Proc. Natl. Acad. Sci., 99, 7309–13. https://doi.org/10.1073/pnas.082081699
Leveson, N. G. (2011). Engineering a Safer World: System Thinking Applied to Safety. Massachusetts Institute of Technology Press, Cambridge. https://doi.org/10.7551/mitpress/8179.001.0001
Linkov, I., Satterstrom, F., Kiker, G., Batchelor, C., Bridges, T., & Ferguson, E. (2006). From comparative risk assessment to multi-criteria decision analysis and adaptive management: Recent developments and applications. Environ. Int., 32, 1072–93. https://doi.org/10.1016/j.envint.2006.06.013
Marek, J., Tangenes, B., & Hellesouy, O. (1985). Experience of Risk and Safety. Work Environment Statf-jord Field. Oslo University.
Meshkati, N. (1995). Human Factors in Process Plants and Facility Design. In Cost-Effective Risk Assessment for Process Design (R. D. Deshotels and R. Zimmer-man, eds.), McGraw-Hill, New York, pp. 113-130.
Meshkati, N. (1999). Cultural Context of Nuclear Safety Culture: A Conceptual Model and Field Study. In J. Misumi, B. Wil-pert, & R. Miller (Eds.), Nuclear Safety: A Human Factors Perspective (pp. 61-75). Taylor and Francis, London. https://doi.org/10.1201/9780203212073.ch4
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Park, J., Seager, T., & Rao, P. (2011). Lessons in risk- versus resilience-based design and management. Integrated Environmental Assessment and Management, 7(3), 396-9. https://doi.org/10.1002/ieam.228
Rasmussen, J. (1997). Risk Management in a Dynamic Society: A Modeling Problem. Safety Science, 27(2/3), 183-213.
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Roberts, K. H. (1990) Some characteristics of one type of high reliability organization. Organization Science, 1, 160–176. https://doi.org/10.1287/orsc.1.2.160
Rundmo, T. (1993). Risk perception and occupational accidents on offshore petroleum platforms. Paper presented at the 2nd Offshore Installation Management Conference, The Robert Gordon University, Aberdeen, April.
Shaughnessy, J. M., Romo, L. A., & Soza, R. L. (2003). Problems of Ultra-Deep High-Temperature, High-Pressure Drilling, SPE Annual Technical Conference and Exhibition. Society of Petroleum Engineers, Denver, USA, October 5–8. https://doi.org/10.2118/84555-MS
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Skogdalen, J., Khorsandi, J., & Vinnem, J. (2012). Evacuation, escape, and rescue experiences from offshore accidents including the Deepwater Horizon. Journal of Loss Prevention in the Process Industries, 25(1), 148-158. https://doi.org/10.1016/j.jlp.2011.08.005
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Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. California Management Review, 58(4), 13-35. https://doi.org/10.1525/cmr.2016.58.4.13
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The U.S. Nuclear Regulatory Commission Safety Culture Policy Statement (U.S. NRC 2011).
The United States Bureau of Safety and Environmental Enforcement-Safety Culture Policy Statement 2013.
USDI (US Department of the Interior), 2010. Increased Safety Measures for Energy Development on the Outer Continental Shelf.
Van Der Voort, H., & De Bruijn, H. (2009). Learning from disasters. Technology and Society Magazine, IEEE, 28(3), 28-36. https://doi.org/10.1109/MTS.2009.934160
Weick, K. E. (1987). Organizational culture as a source of high reliability. California Management Review, 29, 115–128. https://doi.org/10.2307/41165243
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ACSNI. (1993). Organising for Safety-Third Report of the Human Factors Study Group of ACSNI. HMSO, London.
Adaptive Environmental Assessment and Management. In: Holling CS, editor. Chichester, UK: Wiley; 1978.
Alexander, M., Cox, S., & Cheyne, A. (1994). The concept of safety culture within a UK based organization.
AlKazimi, M. A., & Katiem G. (2015). Investigating New Risk Reduction and Mitigation In The Oil And Gas Industry. Journal of Loss Prevention in the Process Industries, 34, 196-208. https://doi.org/10.1016/j.jlp.2015.02.003
Ansell, J., & Wharton, F. (1992). Risk. 1st ed. Chichester: Wiley.
API (American Petroleum Institute). (2002). Recommended Practice for Training and Qualification of Personnel in Well Control Equipment and Techniques for Wireline Operations on Offshore Locations, Recommended practice T-6 (1st ed).
API (American Petroleum Institute). (2006). Recommended Practice for Well Control Operations, Recommended Practise 59 (2nd ed).
API (American Petroleum Institute). (2007a). Contractor Safety Management for Oil and Gas Drilling and Production Operations, Recommended Practise 76 (2nd ed).
API (American Petroleum Institute). (2007b). Recommended Practice for Analysis, Design, Installation, and Testing of Basic Surface Safety Systems for Offshore Production Platforms, Recommended Practice 14C.
API (American Petroleum Institute). (2010). Isolating Potential Flow Zones During Well Construction, Recommended practice 65 – Part 2 (1st ed).
Aven, T., & Heide, B. (2009). Reliability and validity of risk analysis. Reliability Engineering & System Safety, 94(11), 1862-1868. https://doi.org/10.1016/j.ress.2009.06.003
Aven, T., Vinnem, J. E., & Wiencke, H. S. (2007). A Decision Framework for Risk Management, With Application to The Offshore Oil and Gas Industry. Reliability Engineering & System Safety, 92(4), 433-448. https://doi.org/10.1016/j.ress.2005.12.009
Baker, J., Bowman, F., Erwin, G., Gorton, S., Hendershot, D., & Leveson, N. (2007). The Report of the BP US Refineries Independent Safety Review Panel.
Bendor, J. B. (1985). Parallel Systems: Redundancy in Government. University of California Press, Berkeley, CA.
Bjerga, T., & Terje, A. (2015). Adaptive Risk Management Using New Risk Perspectives – An Example from The Oil and Gas Industry". Reliability Engineering & System Safety, 134 ,75-82. https://doi.org/10.1016/j.ress.2014.10.013
Boesch, D. (2012). Deep-water drilling remains a risky business. Nature, 484(7394), 289. https://doi.org/10.1038/484289a
Booth, R. T. (1996). The promotion and measurement of a positive safety culture. In Stanton, N. (Ed.), Human Factors in Nuclear Safety (pp. 313-332). Taylor and Francis, London. https://doi.org/10.1201/9780203481974.ch15
BP. (2010). Deepwater Horizon Accident Investigation Report.
Cox LAT (2012). Confronting deep uncertainties in risk analysis. Risk Anal., 32, 1607–29. https://doi.org/10.1111/j.1539-6924.2012.01792.x
Cox, S. J., & Cheyne, A. J. T. (2000). Assessing safety culture in offshore environments. Safety Science, 34(1-3), 111-129. https://doi.org/10.1016/S0925-7535(00)00009-6
DHSG (Deepwater Horizon Study Group). (2011). The Macondo Blowout, Final Report.
Douglas, M., & Wildavsky, A. (1982). How can we know the risks we face? Why risk selection is a social process. Risk Analysis, 49-51. https://doi.org/10.1111/j.1539-6924.1982.tb01365.x
Engaged in offshore hydrocarbon processing. Proceedings of the Fourth Annual Conference on Safety and Well-being at Work, Loughborough University of Technology, UK, November 1-2.
Flin, R. H., & Mearns, K. J. (1994). Risk Perception and Safety in the Offshore Oil Industry. Second International Conference on Health, Safety, and the Environment in Oil and Gas Exploration, Jakarta. https://doi.org/10.2118/27259-MS
Flin, R., Mearns, K., Fleming, M., & Gordon, R. (1996). Risk Perception and Safety in the Offshore Oil and Gas Industry, (Offshore Technology Report OTH 94 454). HSE Books, Sudbury. https://doi.org/10.2118/35907-MS
Fragouli, E. (2015). Reputation Risk Management in the Petroleum Industry: The Role of Corporate Social Responsibility. The Hellenic Open Business Administration Journal, 1(2), 81-99.
Graham, B., Reilly, W. K., Beinecke, F., Boesch, D. F., Garcia, T. D., Murray, C. A., & Ulmer, F. (2011). Deep water: The Gulf oil disaster and the future of offshore drilling (report to the President). National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling.
Hammer, D. (2010). Five key human errors, colossal mechanical failure led to fatal Gulf oil rig blowout. The Times-Picayune.
Heimann, C. F. L. (1997). Acceptable Risks: Politics, Policy and Risky Technologies. University of Michigan Press, Ann Arbor, MI. https://doi.org/10.3998/mpub.14948
Heimann, L. (2005). Repeated Failures in the Management of High Risk Technologies. European Management Journal, 23(1), 105-117. https://doi.org/10.1016/j.emj.2004.12.015
Holmes, A. (2004). Smart Risk (1st ed.). Chichester: Capstone.
Hopkins, A. (2011). Management Walk-Arounds: Lessons from The Gulf of Mexico Oil Well Blowout. Safety Science 49(10), 1421-1425. https://doi.org/10.1016/j.ssci.2011.06.002
HSE. (2010). Major Hazards, HSE About HSE Strategies and plans Plans Archive Business Plan 04–05 Major hazards.
Huczynski, A. A., & Buchanan, D. A. (1991). Organizational Behaviour, Prentice-Hall, Hemel Hempstead. International Journal of Mass Emergencies and Disasters, 16, 13-43.
Kalantarnia, M., Khan, F., & Hawboldt, K. (2009). Dynamic risk assessment using failure assessment and Bayesian theory. J Loss Prev Process Ind, 22, 600-606. https://doi.org/10.1016/j.jlp.2009.04.006
Khan, F. J., Hashemi, S., Paltrinieri, N., Amyotte, P., Cozzani, V., & Reniers, G. (2016). Dynamic risk management: A contemporary approach to process safety management. Current Opinion in Chemical Engineering, 14, 9-17. https://doi.org/10.1016/j.coche.2016.07.006
Kjellén, U. (2000). Prevention of Accidents through Experience Feedback. Taylor & Francis, London.
LaPorte, T. R., & Consolini, P. M. (1991). Working in practice but not in theory: theoretical challenges of high-reliability organizations. Journal of Public Administration Research and Theory, 1(1), 19–47.
Lempert, R. J. (2002). A new decision sciences for complex systems. Proc. Natl. Acad. Sci., 99, 7309–13. https://doi.org/10.1073/pnas.082081699
Leveson, N. G. (2011). Engineering a Safer World: System Thinking Applied to Safety. Massachusetts Institute of Technology Press, Cambridge. https://doi.org/10.7551/mitpress/8179.001.0001
Linkov, I., Satterstrom, F., Kiker, G., Batchelor, C., Bridges, T., & Ferguson, E. (2006). From comparative risk assessment to multi-criteria decision analysis and adaptive management: Recent developments and applications. Environ. Int., 32, 1072–93. https://doi.org/10.1016/j.envint.2006.06.013
Marek, J., Tangenes, B., & Hellesouy, O. (1985). Experience of Risk and Safety. Work Environment Statf-jord Field. Oslo University.
Meshkati, N. (1995). Human Factors in Process Plants and Facility Design. In Cost-Effective Risk Assessment for Process Design (R. D. Deshotels and R. Zimmer-man, eds.), McGraw-Hill, New York, pp. 113-130.
Meshkati, N. (1999). Cultural Context of Nuclear Safety Culture: A Conceptual Model and Field Study. In J. Misumi, B. Wil-pert, & R. Miller (Eds.), Nuclear Safety: A Human Factors Perspective (pp. 61-75). Taylor and Francis, London. https://doi.org/10.1201/9780203212073.ch4
Morone, J. G., & Woodhouse, E. J. (1986). Averting Catastrophe: Strategies for Regulating Risky Technologies. University of California Press, Berkeley, CA.
National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, (2011). Deep Water the Gulf Oil Disaster and the Future of Offshore Drilling. Report to the President.
National Research Council, (U.S.). Macondo Well Deepwater Horizon Blowout: Lessons for Improving Offshore Drilling Safety. Washington, D.C.: National Academies Press, 2012. eBook Collection (EBSCOhost). Web. 14 Jan. 2017.
National Research Council. (2012). Macondo Well Deepwater Horizon Blowout: Lessons for Improving Offshore Drilling Safety. Washington, D.C.: National Academies Press, eBook Collection (EBSCOhost), EBSCOhost, viewed 29 December 2016.
Norsok (Standards Norway) (2004). Well Integrity in Drilling and Well Operations D-10 (3rd ed.). Oslo, Norway.
NRC. National Research Council of the United States National Academy of Sciences. Adaptive Management for Water Resources Project Planning. Washington, DC: The National Academies Press; 2004.
Oedewald, P., Pietikäinen, E., & Reiman, T. (2011). A Guidebook for Evaluating Or-ganizations in the Nuclear Industry: An Example of Safety Culture Evaluation. Report No. 2011:20, Swedish Radiation Safety Authority. Retrieved Jan. 17, 2012, from http://www.stralsaker rhetsmyndigheten.se/Global/Publikationer/Rapport/Sakerhet-vid-karnkraftverken/2011/SSM-Rapport-2011-20.pdf
Øien, K., Utne, I. B., Herrera, I. A. (2011a). Building safety indicators. Part 1 – Theoretical foundation. Safety Science. https://doi.org/10.1016/j.ssci.2010.05.012
Ornelas, D., Mendes, P., Magrini, A., & Arouca, M. (2014). Offshore oil and gas exploration and production in Brazil: A proposal for integrated actions for operational, occupational and environmental safety. The Journal of World Energy Law & Business, 7(4), 340-363. https://doi.org/10.1093/jwelb/jwu022
Park, J., Seager, T., & Rao, P. (2011). Lessons in risk- versus resilience-based design and management. Integrated Environmental Assessment and Management, 7(3), 396-9. https://doi.org/10.1002/ieam.228
Rasmussen, J. (1997). Risk Management in a Dynamic Society: A Modeling Problem. Safety Science, 27(2/3), 183-213.
Rasmussen, J., & Svedung, I. (2000). Proactive Risk Management in a Dynamic Society. Swedish Rescue Services Agency, Karlstad. Retrieved Jan. 17, 2012, from https://www.msb.se/RibData/Filer/ pdf/16252.pdf
Roberts, K. H. (1990) Some characteristics of one type of high reliability organization. Organization Science, 1, 160–176. https://doi.org/10.1287/orsc.1.2.160
Rundmo, T. (1993). Risk perception and occupational accidents on offshore petroleum platforms. Paper presented at the 2nd Offshore Installation Management Conference, The Robert Gordon University, Aberdeen, April.
Shaughnessy, J. M., Romo, L. A., & Soza, R. L. (2003). Problems of Ultra-Deep High-Temperature, High-Pressure Drilling, SPE Annual Technical Conference and Exhibition. Society of Petroleum Engineers, Denver, USA, October 5–8. https://doi.org/10.2118/84555-MS
Skogdalen, J. E., Ingrid, B. U., & Jan, E. V. (2011). Developing Safety Indicators for Preventing Offshore Oil And Gas Deepwater Drilling Blowouts. Safety Science, 49, 8-9, 1187-1199. https://doi.org/10.1016/j.ssci.2011.03.012
Skogdalen, J., Khorsandi, J., & Vinnem, J. (2012). Evacuation, escape, and rescue experiences from offshore accidents including the Deepwater Horizon. Journal of Loss Prevention in the Process Industries, 25(1), 148-158. https://doi.org/10.1016/j.jlp.2011.08.005
Skogdalen, J., Utne, I., & Vinnem, J. (2011). Developing safety indicators for preventing offshore oil and gas deepwater drilling blowouts. Safety Science, 49(8-9), 1187-1199. https://doi.org/10.1016/j.ssci.2011.03.012
Sylves, R. T. (1998). How the Exxon Valdez disaster changed America’s oil spill management.
Sylves, R. T., & Comfort, L. K. (2012). The Exxon Valdez And BP Deepwater Horizon Oil Spills: Reducing Risk in Socio-Technical Systems. American Behavioral Scientist, 56(1), 76-103. https://doi.org/10.1177/0002764211413116
Teece, D. (2009). Dynamic capabilities and strategic management. New York: Oxford University Press. https://doi.org/10.1142/9789812834478_0002
Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. California Management Review, 58(4), 13-35. https://doi.org/10.1525/cmr.2016.58.4.13
The Commonwealth Scientific and Industrial Research Organisation. (2013, June 6). The Commonwealth Scientific and Industrial Research Organisation. Retrieved July 19, 2013, from http://www.csiro.au/
The U.S. Nuclear Regulatory Commission Safety Culture Policy Statement (U.S. NRC 2011).
The United States Bureau of Safety and Environmental Enforcement-Safety Culture Policy Statement 2013.
USDI (US Department of the Interior), 2010. Increased Safety Measures for Energy Development on the Outer Continental Shelf.
Van Der Voort, H., & De Bruijn, H. (2009). Learning from disasters. Technology and Society Magazine, IEEE, 28(3), 28-36. https://doi.org/10.1109/MTS.2009.934160
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