Why the oil & gas industry is highly hazardous and risky?
The oil and gas industry can be highly hazardous due to the nature of the product involved – inflammable liquid and gas. In addition, the equipment and materials used in the industry can also cause serious injuries that can sometimes become fatal. Therefore, oil & gas companies are carefully regulated and monitored by regulatory bodies like OSHA to protect both workers and the overall environment.
According to data from the U.S. Bureau of Labor Statistics, there were 386 fatal injuries that were reported (between 2016 and 2020) in the oil and gas, mining, and quarrying sectors. A majority of these – over 70% – were in the oil & gas industry.
One of the biggest risks is that of fire and explosion due to flammable vapours or gases getting ignited on accidental release at the time of production. This can happen anywhere – in wells, trucks, and surface equipment, including tanks and shale shakers. They can get ignited due to static, sparks from electrical energy sources, open flames, lightning, cigarettes, hot surfaces, and so on.
Why OSHA Emphasizes on Process Safety Management?
Considering the risks, Occupational Safety and Health Administration (OSHA) emphasizes the need for Process Safety Management (29 CFR 1910.119) to specifically tackle safety risks associated with hazardous chemicals and materials.
Industries such as oil and gas using hazardous chemicals often report the unexpected release of toxic chemicals. This needs to be controlled and PSM provides the standards that help with the management of such hazardous chemicals. This encompasses the use of technologies, procedures, and management practices.
The International Association of Oil & Gas Producers (IOGP) defines the PSM as “a disciplined framework that helps to manage the integrity of processes and operating systems handling hazardous substances. This prevents the occurrence of major incidents due to the unplanned release of hazardous materials, energy, structural failures, or loss of stability..”
Other Regulations that recommend better Process Safety Management (PSM) Apart from OSHA’s PSM, some of the other regulations, standards, and guidelines for the safe handling of chemicals include:
- Center for Chemical Process Safety (CCPS) in the US
- The Seveso III Directive (2012/18/EU) in the European Union
- The Control of Major Accident Hazards (COMAH) Regulations 2015 in the UK
- Dangerous Goods and Major Hazard Facilities under Occupational Health and Safety Acts in Australia
CQ Guide to a Robust Process Safety Management (PSM) program
Here’s a 14-point checklist to tick-off to ensure your company has a PSM program that is robust and reliable:
- Deep employee participation and involvement in tackling process safety issues
- Easy access to process-related data and information
- Quick and agile process hazard analysis (ideally supported by an automated JSA process)
- Standard Operating Procedures, with proper training and documentation
- Robust training focused on continuous improvement
- Contractor Safety Management
- Pre-startup safety review (of new or changed procedures)
- Mechanical integrity
- Hot Work Permit (with a robust automated PTW solution)
- Change management
- Incident Investigation, empowered by data
- Well-planned emergency response
- Regulatory compliance and safety audits
- Collaborative approach towards enterprise-wide safety, with proper access to process information
At CQ, we published a Whitepaper titled ‘14 Elements of Process Safety Management (PSM) in the Oil & Gas Industry’. Download it here: https://www.compliancequest.com/whitepaper/process-safety-management-elements-in-oil-gas-industry/
