www.wipro.com
Safety and Health Management
System in Oil and Gas Industry
Neha Chauhan
SAP EHS Consultant
Table of contents
03�������������������������������������������������������������������������������������� 1. Introduction
03�������������������������������������������������������������������������������������� 2. Industry Overview
04�������������������������������������������������������������������������������������� 3. Hazards related to Oil and Gas Industry
04�������������������������������������������������������������������������������������� 3.1 Safety and Injury Hazards
05�������������������������������������������������������������������������������������� 3.2 Health and Illnesses Hazards
06�������������������������������������������������������������������������������������� 4. Managing Occupational Safety and Health Risks
06�������������������������������������������������������������������������������������� 4.1 Risk Management Process
07�������������������������������������������������������������������������������������� 5. Occupational Safety and Health Management System (OSHMS)
07�������������������������������������������������������������������������������������� 5.1 Features of OSHMS
08�������������������������������������������������������������������������������������� 5.2 Components of an effective OSHMS
09�������������������������������������������������������������������������������������� 5.3 Benefits of OSHMS
09�������������������������������������������������������������������������������������� 6. Conclusion
09��������������������������������������������������������������������������������������References
10�������������������������������������������������������������������������������������� About the Author
10�������������������������������������������������������������������������������������� About Wipro’s Energy, Natural Resources, Utilities and Engineering &
Construction (ENU) Strategic Business Unit
10�������������������������������������������������������������������������������������� About Wipro Ltd.
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:
Upstream
Exploration and
Production
Midstream
Transportation,
Storage and
Marketing
Downstream
Refining, Sales and
Distribution
Fig.1.Segments of Oil and Gas industry
On 25 August 2012, an explosion caused by the ignition of a leaking gas at
and injured 16 others2. The explosion caused the Deepwater Horizon to
the Amuay oil refinery, which is part of the Paraguana Refinery Complex,
burn and sink, resulting in a massive offshore oil spill in the Gulf of Mexico,
killed 48 people; primarily National Guard troops stationed at the plant,
considered the largest accidental marine oil spill in the world, and the
and injured 151 others1.
largest environmental disaster in U.S. history2.
The Deepwater Horizon drilling rig explosion refers to the April 20,
According to the report developed by the NORA Oil and Gas Extraction
2010 explosion and subsequent fire on the Deepwater Horizon semi-
Council; In the US, during 2003-2008, 648 oil and gas extraction workers
submersible Mobile Offshore Drilling Unit (MODU) killed 11 workers
were fatally injured on the job, resulting in an occupational fatality rate of
3
29.1 deaths per 100,000 workers – eight times higher than the rate for all
well-being is essential. Health protocols and periodic medical checkup
U.S. workers. Nearly half of all fatal events in the Oil and Gas extraction
should be pre-defined and done for every worker depending on the job
industry resulted from highway crashes (29%) and workers struck by
and work area type to identify possible deviations from the normal health
objects and equipment (20%)3.
and to confirm that necessary counteractive actions are taken in advance.
The above alarming incident data clearly emphasizes the need for an
This paper outlines the key safety and health hazards associated with the
effective occupational safety and health management system that
upstream, midstream and downstream segments of Oil and Gas industry,
integrates safety and health concerns into a daily routine.
including the significance, features, components
People working in Oil and Gas industry are exposed to various risk
factors. Hence continuous monitoring of their working conditions and
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
Safety and Injury Hazards
Motor Vehicle Accident
Possible Causes
• Often the roads leading to well sites lack firm shoulders and other
safety features4
• Fatigue due to long driving distance and long working shifts
Contact Injuries
Fire and Explosions
Slips,Trips and Falls
• Workers being struck by, entangled, or crushed by tools, machinery
or other objects
• Presence of highly combustible hydrocarbons
• Presence of oxygen/ignition source
• Frequent need to work at elevations
• Uneven Surface
• Improper use or non-availability of fall protection systems
According to NIOSH, confined space refers to a space which by
design has5:
Confined Space
• Limited opening for entry and exit
• Unfavorable natural ventilation
• Not designed for continuous employee occupancy
Examples of confined places in Oil and Gas industry are storage tanks,
pipelines, silos, etc.
4
3. 2 Health and Illnesses Hazards
Workers in Oil and Gas industry are generally susceptible to following
ergonomic hazards (manual handling activities, repetitive motions, awkward
agents which lead to various health and Illnesses hazards: chemical
postures); and psychosocial hazards (overwork, odd working hours, isolated
hazards
sites, violence).
(toxic, corrosive, carcinogens, asphyxiates, irritant
and
sensitizing substances); physical hazards (noise, vibration, radiations,
extreme temperature); biological hazards (virus, parasites, bacteria);
Segments
Upstream
The following table identifies the potential health effects from key
processes in Oil and Gas industry:
Key Processes
•Seismic Survey and
evaluation
•Exploration and drilling
•Development and
production
•Decommissioning
Agents
•Pathogenic microorganisms
•Infection transmitting vectors
•Drilling mud
•Petroleum products
(Hydrocarbons)
•Radioactive sources
•Chemicals and additives
•Metals (Pb, Cd, Mn, etc.)
•Extreme temperatures •Silica/Asbestos
•Noise/Vibration
•Mechanical
•Ergonomic
•Psychosocial
Midstream
•Pipelines
•Transport and storage
•Marketing
•Petroleum products
(Hydrocarbons)
•Dust from filing and scaling (from
cleaning of pipes and tanks)
Possible Health Effects
•Infectious and parasitic diseases
(e.g., Hepatitis A, Cholera,
Typhoid fever)
•Cumulative trauma disorders
•Chronic obstructive pulmonary
disease
•Gastrointestinal disorders
•Dermal and eye issues
•Spinal disorders
•Neoplasms/Cancer
•Heat Stroke
•Stress
•Sleep deficits
•Noise induced hearing loss
•Drug and alcohol abuse
•Dermal and eye issues
•Pulmonary disorders
•Gastrointestinal disorders
•Neoplasms/Cancer
Downstream
•Product Refining
•Petro chemicals
•Sales and Distribution
•Petroleum products
(Hydrocarbons)
•Treatment chemicals
•Metals (Pb, Cd, Mn, etc.)
•Dermal and eye issues
•Gastrointestinal disorders
•Neoplasms/Cancer
•Noise induced hearing loss
•Silica/Asbestos
•Solvents
•Noise/Vibration
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4. Managing Occupational Safety and Health Risks
The aim of occupational safety and health risk management is to identify
Business processes in Oil and Gas industry are very complex. Hence it
and assess safety and health hazards existing at the workplace and to
is essential that a systematized approach should be used for managing
define appropriate control and retrieval steps.
occupational safety and health hazards. Its solution model can be based
on the PDCA Cycle:
Plan
• Strategic HSSE
Roadmap
• Work Flows
• Objectives and Targets
• Key Priorities
Do
• Risk & Injury
Management
• Health & Illness
Management
• Training & Assessment
• Regulatory Compliance
Act
• Management
Review
• Actions for
Continuous
Improvements
• Monitoring
• Modeling
• Trends
• Performance Indicators
• Audits
Check
4.1. Risk Management Process
As stated earlier, risk management is crucial for preventing work related
• Job safety analysis: It is a process of systematically evaluating certain
injury and illness. It includes:
jobs, tasks, processes or procedures and eliminating or reducing the
• Identifying the risks
risks or hazards to As Low As Reasonably Practical (ALARP) in order
• Evaluating and prioritizing the risks
to protect workers from injury or illness6
• 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:
6
• 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:
• Define and Implement preventive measures
to eliminate or
minimize the risk of an
incident/accident
• Evaluate the risk arising from
each identified hazard
• Identify existing
precautionary measures
and what went wrong
• Determine what kind of
injury or ill health might
occur
• Identify persons
taking part in the risk
management process
RISK
CONTROL
• Rank the risks on the basis
of severity
• Gather health and safety
information pertinent to
Oil and Gas Industry
RISK
ASSESSMENT
• Define strategy and
workflows as per
the business/legal
requirements
PLANNING
RISK
IDENTIFICATION
RISK
RECORDING
• Record the findings
of risk assessment for
defining control measures,
audit, internal review,
regulatory purposes
• Regular review and
updating of risk
assessment
MONITOR
AND REVIEW
FOLLOW ON
ASSESSMENT
• Ensure that
implemented control
measures are being
used and are effective
• Reassess the efficiency
of preventive/control
measures
• Identify possible safety and health
hazards within workplace through
work area inspections, previous
accident/ ill-health records, etc.
5. Occupational Safety and Health Management System (OSHMS)
The insinuation of implementing an occupational Safety and Health
Also, Guidelines on Occupational Safety and Health Management
Management System at all workplaces came into limelight, when ‘Global
Systems (ILO-OSH 2001) provide national/organizational framework
Strategy on Occupational Safety and Health: Conclusions’ were adopted
for occupational Safety and Health Management Systems8. As per these
by the ‘International Labour Conference’ at its 91st session, 2003.
guidelines, the OSH management system should contain the main
The Strategy advocates the application of a systems approach to the
elements of policy, organizing, planning and implementation, evaluation
management of national OSH systems7.
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 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
• It should enable workers to follow consistent health and safety practices
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5.2 Components of an Effective Occupational Safety and
Health Management System
Occupational Safety and Health Management System is one of the
Following key components should be encompassed in an active
critical factors whose successful execution confirms operational safety in
occupational Safety and Health Management System:
upstream, midstream and downstream segments of Oil and Gas industry.
Sl.
No
OSHMS
Components
Health and
Safety Plan
1
Health protocols
Requirements
Oil and Gas Company’s vision and
approach towards Health and Safety
9
Occupational
Health
Management
Organizational hierarchy
2
Administration
Key details of persons responsible for
managing health and safety plans
3
Worksite inspections
Implementation of best practices
and lessons learned from the past
experiences at workplace
Set of systems and processes for
managing Health & Safety risks
H&S Risk
Management
4
10
Management
of Change
11
Emergency
Response Plan
Inventory
Management
12
Calendar management
Task and
Workflow
Management
6
Role assignments - Involving and
informing workers, safety officers
and others about their roles and
responsibilities, allocated tasks, etc.
13
7
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
8
Disaster management/Emergency
response plan for all the potential
predicaments based on predictive
risk analysis
Compliance
Management
Comply with the obligations under
pertinent local/national/global H&S
regulations
Competency
Management
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
18
Audit and
Review
Automated notifications
H&S
Maintenance
Systems
Process change
Track capabilities/skills of workforce
Hazard ranking/risk matrix
Maintenance of hazardous substance
database
Introduction of new equipment
Alarm system
Risk control levels analysis
5
Drug, alcohol and other medical
testing
New regulatory requirements
Job Hazard analysis
Corrective action plans
Injury/Illness management
Identification of new hazards
Proper demarcation and management
of workplace according to processes,
activities, design, etc.
Work Area
Management
Medical appointments
Relevant report generation from
health and safety data
Interactive dashboards for higher
management view and decision
making
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
References
1. http://en.wikipedia.org/wiki/Paraguan%C3%A1_Refinery_Complex
•
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
2. http://en.wikipedia.org/wiki/Deepwater_Horizon_explosion
3. Draft National Oil and Gas Extraction Agenda - August 2010: For
Occupational Safety and Health Research and Practice in the U.S. Oil
more inspired, and performance driven workforce
and Gas Extraction Industry - Developed by the NORA Oil and Gas
•
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
Extraction Council
(http://www.cdc.gov/niosh/nora/comment/agendas/oilgas/)
4. http://www.cdc.gov/niosh/programs/oilgas/projects.html
5. http://www.cdc.gov/niosh/topics/confinedspace/
6. http://en.wikipedia.org/wiki/Job_safety_analysis
edge and improves relationships between stakeholders, such as
clients, contractors, subcontractors, consultants, suppliers, employees
7. GLOBAL STRATEGY ON OCCUPATIONAL SAFETY AND
HEALTH: Conclusions adopted by the International Labour
and unions
Conference at its 91st Session, 2003
6. Conclusion
http://www.ilo.org/wcmsp5/groups/public/@ed_protect/@protrav/@
safework/documents/policy/wcms_107535.pdf
Given the perilous nature of the Oil and Gas industry, the need
8. Guidelines on occupational safety and health management systems
for implementation of an efficient occupational Safety and Health
(ILO-OSH 2001)
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
http://www.ilo.org/public/english/region/afpro/cairo/downloads/
wcms_107727.pdf
9. http://ec.europa.eu/energy/oil/offshore/standards_en.htm
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.
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About the Author
Neha Chauhan is a SAP EHS Consultant in the HSSE Practice of Energy and Utilities Vertical at Wipro Technologies. 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.
About Wipro’s Energy, Natural Resources, Utilities and
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