How Managing Risk in the Oil & Gas Industry Can Prevent a Large-Scale Disaster
Lana Ginns
Marketing Manager

The US Bureau of Labor Statistics suggests more than half a million of the US population work in the Oil & Gas Industry - with the number of global workers estimated between five and six million. The nature of working with hazardous materials in hostile environments means oil and gas workers are often exposed to dangerous conditions. How can oil and gas companies ensure they are fulfilling duty of care by protecting the welfare of their employees? In this ar ticle, Lana Ginns, Marketing Manager at Fluenta, discusses how managing risks through continuous asset monitoring and connected technologies can highlight equipment failures and operational issues before they contribute to disaster.

Delivering effective risk management has never been easy in the Oil & Gas Industry. The penalties for failure - in terms of impact on people, environment, reputation and finances - are ex treme. Though many oil and gas companies are taking responsible steps to eradicate possible dangers, reducing risk must be at the centre of all new projects going forward. New technology and an increased awareness of safety must be the driving force behind operational reform.

High risk, high pressure
Price volatility has been a major concern for the sector, with increasing costs of ex traction and the frequency of political events that affect oil prices. While competition from alternative energy sources and new technologies has remained limited, the Oil & Gas Industry is continuing to contend with fluc tuations in demand. Politics may also add to strategic challenges. Access to reser ves, risk of nationalisation and a shift in the regulatory climate can be costly for the industry. Regulatory compliance has also exacerbated operational and financial challenges. As safety regulations and environmental guidelines are tightened, the oil and gas sector is pressured to add substantial investments to ensure compliance. However, for oil and gas workers operating in less than hospitable environments, this is the where the biggest risk lies.

Safety first
Although rare, there is a risk of on-site explosions in the Oil & Gas Industry. The Deepwater Horizon oil spill (also referred to as the BP oil spill) began on April 20, 2010, in the Gulf of Mexico on the BPoperated Macondo Prospect. At approximately 9:45 pm, methane gas from the well expanded into the drilling riser and rose into the drilling rig, where it ignited and exploded, engulfing the platform. 126 crew members were on board : seven BP employees, 79 from Transocean and employees of various other companies. Despite a three day US Coast Guard search, eleven missing workers were never found. The Deepwater Horizon sank on the morning of 22 April 2010. Considered the largest accidental marine oil spill in the history of the petroleum industry, the US Government estimated the total discharge at 4.9 million barrels.

There are many potential causes of such an accident, including the sudden release of gas under pressure or the introduction of an ignition source into an explosive or flammable environment. The Hydrocarbon Releases(HCRs) that cause explosions like these are, in simple terms, leaks.

Leaks will inevitably happen during operations, and while significant efforts are being made to reduce HCRs, innovations in remote monitoring technology can still be fur ther exploited to reduce risk. The recent Step Change in Safety campaign was suppor ted by stakeholders in the UK offshore industry and demonstrated what could be achieved by increasing focus on safety procedures. In 2010 the total number of HCRs was 187. The Step Change in Safety campaign aimed to reduce this by 50% over a three year period. Whilst the campaign fell short - reducing the number of leaks by 49% - the approach demonstrated what was possible when more attention is given to on -site safety. Following an investigation into the Deepwater Horizon disaster , it was discovered that a number of asset failures had contributed to the explosion and a dangerous HCR had not been detected.

Hostile working environments
Monitoring potentially explosive environments for the presence of flammable vapours is an important health and safety practice and should be supported by the use of accurate measuring equipment. Historically, equipment checks were the responsibility of on-site personnel. This meant placing a human being into a potentially dangerous environment.

Due to the nature of fossil fuel location and extraction, critical infrastructure for the Oil & Gas Industry is often located in remote environments: in the middle of the ocean or in extreme heat or cold. The Deepwater Horizon oil rig was a semi-submersible, mobile, floating, drilling rig that operated in waters up to 10,000 feet deep. Sea water could impact asset per formance, underwater debris could affect flow and cold deep-water temperatures could freeze equipment. Monitoring assets in hostile environments is crucial for risk reduction, but these punishing conditions can mean maintenance is a dangerous task.

The management of plants located in dangerous and extreme environments is traditionally provided by a large and expensive workforce. A Nor th Sea oil rig will typically station between 50 and 100 permanent staff on board - each working 12 hour shifts. Should an incident such as an explosion occur, access to deep water rigs is only possible by helicopter. However, new connected technologies can help counteract the effect of hostile environments and identify or deal with potential issues before they become a catalyst for disaster.

In late 2015 a fire aboard a rig in the Caspian Sea resulted in the deaths of a number of oil and gas workers. This was caused by a gas pipeline that was damaged in high winds. By recording critical data to the cloud, companies can understand the impact of ex treme weather on oil rigs and implement procedures to reduce the risk of an incident occurring again. Had the owners of the rig been more aware of the likelihood of such an incident happening, the site could have been evacuated earlier.

Connecting technology and separating risk
Cloud technology and the availability of internet connectivity no enables remote asset management. Cloud infrastructure is able to support the constant monitoring and storage of data on remote servers anywhere in the world in real time via IoT. Monitoring equipment installed on local assets transmits information to software that is stored on central ser vers, rather than physically on an oil and gas site. If an asset is malfunctioning - or is about to do so - oil and gas companies will be aler ted. When this rea -time data is fed into software such as a continuous emission monitoring system (CEMS), organisations can then collect, record and repor t data remotely.

With internet connectivity available almost anywhere, businesses can access the CEMS data feeds of remote assets from multiple sites around the world. It is not necessary to store and run the software on a machine on-site, which removes the need for on-site staff. Additionally, the data is stored securely on multiple remote ser vers with back up and is not dependent on the health and reliability of an on-site machine.

If companies do not currently have technology to fully automate an installation - or if they are not positioned to deploy Artificial Intelligence (AI) at this time - star ting to collect relevant information now will enable more sophisticated decision making for the future.

The remote measurement and testing of assets can almost eliminate human risk . With continuous measurement, operators can discover leaks through a process called mass balancing. By accounting for material entering and leaving pipes, mass flows can be identified which might have been unknown, or previously difficult to measure. For example, operators can use mass balancing to identify faulty valves within their pipe systems that may be causing dangerous leaks. Remote action can be taken to update software, shut down failing or faulty systems, and if there is a danger of explosion, extract on-site personnel immediately.

By implementing connected technologies the Oil & Gas Industry is mitigating risk and reducing the threat of a large scale oil and gas disaster. Through cloud technology oil and gas companies can remotely manage assets and reduce the number of personnel having to maintain equipment in dangerous environments. IoT and cloud technologies empower oil and gas companies to pre-empt an incident before it occurs, significantly reducing human risk. Future considerations for reducing risk also focus on improving personnel training. The industry is in discussions to use new visualisation technologies such as virtual reality and augmented reality to train staff. Using simulators - similar to those used in the airline industry - can expose workers to a range of hazards and scenarios, which they cannot normally be trained to react to. Similarly, drilling rigs are becoming more and more automated. Automation will eventually reduce the number of employees needed at a drill site, and overall safety rates can be improved. Mitigating risk in the Oil & Gas Industry and preparing personnel could be the difference between a well-managed oil rig and a large scale disaster.