Risk Management and Safety in the UK Oil and Gas Sector

This paper discusses the risks associated with the UK oil and gas sector and the need for risk management strategies to mitigate them. It also highlights the safety laws and regulations, training and updating of employees, and statistics relating to offshore accidents and risks.

Running head: RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS
SECTOR
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
Name of the Student
Name of the University
Author Note

1
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
Table of Contents
Introduction................................................................................................................................2
The up to date legislation and the reporting of Injuries, Diseases and Dangerous Occurrences
Regulations (2013) and Health and Safety at Work Act (1974)................................................2
Justifying a business case to reduce the risk and use of Risk management Strategies..............3
The training and updating of employees relating with the issues of safe system of work,
permit, fire and evacuation process and health and safety rules and regulations......................4
Statistics relating to offshore accidents and risks......................................................................6
Include relevant examples from the oil and gas sector..............................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

2
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
Introduction
Oil and gas projects are always challenging and complex to control. There are some
risks associated with employees and technological parts. The issues are quite common in oil
and gas mines, so In that case, better precaution for the employees is needed from the
management or the government. All the phases are different and all the integrated process are
highlighted in order to success the planning. The issue of different cases like Alexander
Kielland, Piper Alfa, and Mobil Oil all these things are dangerous and signify the challenges
the employee in the oil and gas industry has faced (Shuen, Feiler and Teece 2014). This is the
key reason that ensures better protective nature and alignment of good procurement for the
advancement of dealing in the UK. To increase the productivity of the organisation some
effective changes are needed and some risk management procedures are also needed to align
with that (Shuen, Feiler and Teece 2014). The oil price fluctuation makes some uncertainties
in that process and religious affections are important in that case to highlight the section for
the development of oil and gas sectors.
In this paper, the major problem for employees is to face the difficulties in oil and gas
sectors and to evaluate the best possile way to mitigate those. The business set up is higher in
oil and gas sectors and they have earned a higher section of revenue also. The paper also
highlights safety laws, those have been implemented for employees associated with that, and
also the process of evacuation, safety rules and permit that can deliver better process of
dealing with the work process.
The up to date legislation and the Reporting of Injuries, Diseases and Dangerous
Occurrences Regulations (2013) and the Health and Safety at Work Act (1974)
From the 1st October 2013, the rule has been changed. The work-related accidents are
the major concern in that case. There are certain injuries that diagnose in that case and

3
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
dangerous occurrences like death or severe physical injuries are the concern matter in that
case (Hse.gov.uk 2018). The classification of major injuries are turned into the specific
injuries and that change has come up in 2013 (Hse.gov.uk 2018). The accumulation of fatal
accidents is also covered up in this process and the accidents of non-workers also important
in that case. The record numbers of accidents are under the situation and 47 types of disease
replaced with the eight categories of work in work-related places are all under the situation.
The process of Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
(RIDDOR) record kept for 3 years after the last date of the incident (Hse.gov.uk 2018). There
is some basic information that kept as confidential in that case and these will maintain a
proper time framework also.
In case of the Health and Safety at Work Act (WASAWA) in 1974 protects health and
welfare aspects of employees. There are some duties and casual works have to do as
employees have some responsibilities for the development of business, however, to curtail the
risk factor from this ad to guide that for the better workplace safety is employees are under
the belt of this rule (Worksmart.org.uk 2018). The reduction of risk is there and employees
can claim their right as well.
If the laws are not maintained in the proper way, then it is very important to deal with
the insecure life of employees. They do not even under the quota when workplace accidents
happen and their life will be under threat. There are some dangerous occurrences take place
in that case and workplace safety is being violated (Worksmart.org.uk 2018). In that
situation, some basic obligations have come and that will create obstacles in case of
advancement. The same situation persists in the Health and Safety at Work Act as this is the
main protection shield that covered up the entire process of protecting employees. If the
shield breaks then it will be disastrous for the employees (Worksmart.org.uk 2018). The

4
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
compliance is not fruitful for the employees as this is the major concern of their health persist
in that case as well.
Justifying a business case to reduce the risk and use of Risk management Strategies
Compaq became one of the largest suppliers of PCs in 1990 and the system was
improved day after day. However, at the time of 2002, the company is under the small debt
and they are in the risk situation as well. The case in Compaq is critical in that case as the
development and the growth in business is the major aspect that reflected through their
dealing. The situation is also challenging for the company as well as the good position is
trembling and major striking dealing and economic reimbursement was not happen. But the
process of infrastructure is so strong in that case that they recover the situation well in
manner. In case of global ranking, they are in a good position but as the situation comes, the
growth of the company is important in that matter and that reflected in case of better maturity
and personal dealing (Lindøe, Baram and Renn 2013). The company is not in the good
position after that financial risk has happened and they are in the situation when the entire
improved scenario is not possible for the business.
Project Risk Organisation comprises risk preparation, identification, investigation,
response development, and regulatory threat on a project. The objects of the project risk
organization are to upsurge the probability and impact of optimistic actions, and diminution
the probability and influence of harmful events in the scheme. The reason behind the risk is
also initiated by the rules that bound to be there and that issues that proceeded in case of
positive implementation of unknown risks. The risk management skills PMI-RMP all these
are important in that case and that somehow impacted the business dealing along with the
information that is needed in that scenario (Yusuf et al. 2013). The standards are envisioned
to allow administrations to identify specific hazards, survey one of the sympathetic
weaknesses to decide their hazard, discriminate slants to diminish these dangers and later

5
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
actualize chance decrease activities as indicated by the comprehensive system. The treatment
chances are different in that case and outside modification are also important in that case to
justify the process in the unique sense and that reviewing the process in the higher process.
The training and updating of employees relating with the issues of safe system of work,
permit, fire and evacuation process and health and safety rules and regulations
The employees need training regarding risks as the employees will have the
confidence during the time of safety risks and the employees will be able to carry out the risk
assessment during the time of need. The employees will have the idea of risk mitigation
without assistance during the time of risk in the workplace (Cassir et al. 2015). The
employees will attend the risk assessment course which will protect the employees. The
employees will also get to know about the laws of HSE. The employees will also follow the
health and safety laws of the oil and gas sector at the workplace. The employees will also
know about the key practical risk assessment techniques if the employees would be given the
risk assessment training.
Oil and gas sector is very hazardous and this industry has the safety programmes for
the employees. In the oil and gas sector, the employees have to tackle the powerful
equipment, processes and inflammable chemicals which can inflict hazards to the employees.
PPE (Personal Protective Equipment) is necessary which will protect the employees against
health and safety risks. PPE includes the safety helmets, eye protection, gloves and high-
visibility clothing for the employees and safety footwear as well as safety harness for the
employees (Shinbaum et al. 2016). These types of equipment help the employees to make
them safe from risky incidents.
According to Jafari et al. (2015), the safety system at work is the set of the procedure
through which the work needs to be carried out. The employees can follow the safe system of

6
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
work where the hazards of the work process can be eliminated, however, the risks of the work
still exist. A safe system of work can decrease or eliminate the risk exposure at the
workplace; however, the employees should strictly follow the safe system. Many of the
incidents occur due to the lack of following the safe system and safe system is then
performed, organised and planned as well as maintained procedure to reduce the safe,
practical and work without the risk associated with this.
Permit-to-work is a formal written system which is to control the types of work which
are potentially hazardous. Permit to work is the document that specifies the procedure of
work to be done and the safety measurement to be taken to complete the work. Permit-to
work is the essential part of the safe system for the maintenance of activities in the workplace
in oil and gas sector (Rosselein et al. 2017).
The employees need to know about the workplace safety issues and these are
important to tread carefully. The organisations must follow the safety and health regulation
and rules; if the organisations do not follow the rules; the employees can choose to complain
about the rules and regulations. The employees can only respond to areas where the staffs
have a responsibility under the legislation. For instance, Buncefield Fire was caused due to
the series of the explosion in 2005 at the Oil Storage Terminal at Hertfordshire (Mason et al.
2015). This place was the fifth largest oil storage in the UK and there was no such safety
taken by the authority.
Statistics relating to offshore accidents and risks
In the UK offshore accidents and risks incidents were fatal as approximate 1.3 million
working people suffered work-related issues. In the oil and gas sector in the UK, almost
2,600 mesothelioma deaths occurred due to the past asbestos exposure in the year 2016
(Hse.gov.uk 2018). In the report published by the Government of the UK that 144 workers

7
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
were killed at work due to the poor management of health and safety at oil and gas sector in
2017-18. 609,900 injuries occurred at the workplace as published by the Labour Force
Survey in the UK. RIDDOR published the data where it was mentioned that 70,117 injuries
of employees were taken place in the UK due to the health and safety issues. 31.2 million
Working days were lost for the work-related issues, illness and workplace injury. In addition,
in the UK, £14.9 billion cost of injuries and ill health of current working condition happened
in the year 2016-17 (Paterson 2017). HSE report of oil and gas sector contained that 57
injuries were reported compared to 47 in 2013-14. The major injury rate per 1 million
workers increased from last year’s figure of 123 to 147 (Holt and Allen 2017). In the oil and
gas sector, 361 dangerous incidents were reported and the estimated offshore workforce in
2016 was 32,000. The construction work process environment gives the highest number of all
injuries in the year.
Figure 1: Major injuries work process environment
(Source: Hse.gov.uk 2018)

8
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
The above chart reported the injuries in the main work process in the oil and gas sector.
Maximum numbers of issues occurred in the ‘deck operation' in the last three years.
Figure 2: Summary of injuries and dangerous occurrences
(Source: Hse.gov.uk 2018)
In the oil and gas sector, injuries from handling or lifting produced the most injuries.
In addition, ‘struck by moving objects’ and ‘falls from height’ are some of the causes. Almost
81% of the injuries occurred to the limbs.
SPE model of risk assessment is based on the specific hazards as this is involved in
risk associated with the oil and gas sector. This model helps to determine the risk associated
with the function of severity, exposure and probability and exposure. The risk is equal to
severity, probability and exposure. Severity is the occurrence's potential consequences which
can be measured in terms of degree of injury and damage. In the oil and gas sector; when
something goes wrong, it can result in the injury or death, mission degradation, reduced
morale and adverse policy. In addition, the severity of the incident can be varied from 1 to 5.
Probability is the likelihood of the consequences which has the chance to occur. In addition,
the oil and gas sector, the probability of risk is high and it can be measured from a 1 to 5

9
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
rating scale. According to Suter (2016), exposure is the time, number of people and amount
of equipment involved in the risk assessment. Exposure is also associated with the proximity,
volume and repetition of the incident. Exposure can vary from 1 to 4. These three elements
help to compute the risk associated with this. In the oil and gas sector, the management can
evaluate the potential impact of the effectiveness of the model. After calculating the risk
values using the formula:
Risk= S*P*E
In the oil and gas sector, after computing the risk, each level of the hazards must be
identified and highest and lowest level of hazard would be focused for the most concern with
some limited resources.
Include relevant examples from the oil and gas sector
Piper Alpha was famous for oil production process platform in the North Sea and the
place was far from North East Scotland. Occidental Petroleum Limited operated the platform
and it began in the year 1976. Initially, it was the oil platform and later it added to gas
production as well. Oil and gas destroyed Piper Alpha in 1988 and it killed more than 167
people. The incident took the lives of two crewmen in the vessel. 61 employees rescued from
the place and they survived. This incident caused the loss of $3.4 billion and it was one of the
costliest man-made destruction (Bamberger and Oswald 2014). The vital safety valve was
erased by one of the crews in the morning shift and the pump should not be started.
The Alexander Kielland was one of the semi-submersible platforms in Scotland. This
rig was owned by Stavanger Drilling and it was a Norwegian company. Huge waves and high
winds battered the structure failed of the five-legged bracing. The whole structure of the rig
for 30 degrees and it was stabilised by the single remaining cable. Among the 212 employees,

10
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
123 employees lost their lives (Bergh et al. 2014). The pressure of the cable was so tough
which snapped the cable.
Ocean Ranger was the semi-submersible offshore drilling rig and it had been taken as
rent by Mobil Oil. During the storm, the chain locker of the upper deck flooded and it led to
the loss of lives. The whole rig capsized due to the storm and all 84 employees died in the
freeze of the sea.
Conclusion
In the oil and gas sector; the safety and health are one of the most important
constituents as the most of the chemicals, operational and end products cause harm to the
employees. Hydrocarbon is associated with the oil and gas sector as it is well-known to create
health and safety issues to the work. In the UK, there are various workplace acts which are
implemented to reduce the occurrence and to provide safety to the employees. In the oil and
gas sector, drilling and servicing activities can involve many different types of materials and
equipment. The employees have to recognise and control the hazards so that they can prevent
the deaths and injuries. The organisations have to highlight the hazards to maintain the
enforcement and standards. Maximum hazards and risks come from the vehicles collision,
explosions, confined spaces and falls and machine hazards.

11
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
References
Bamberger, M. and Oswald, R.E., 2014. Unconventional oil and gas extraction and animal
health. Environmental Science: Processes & Impacts, 16(8), pp.1860-1865.
Bergh, L.I.V., Hinna, S., Leka, S. and Jain, A., 2014. Developing a performance indicator for
psychosocial risk in the oil and gas industry. Safety science, 62, pp.98-106.
Cassir, N., Boudjema, S., Roux, V., Reynier, P. and Brouqui, P., 2015. Infectious diseases of
high consequence and personal protective equipment: a didactic method to assess the risk of
contamination. infection control & hospital epidemiology, 36(12), pp.1485-1486.
Holt, A.S.J. and Allen, J., 2017. Principles of health and safety at work. Abingdon:
Routledge.
Hse.gov.uk 2018 Reporting accidents and incidents at work retrieved from:
http://www.hse.gov.uk/pUbns/indg453.htm [Accessed on 8th August 2018]
Jafari, M., Gharari, M., Ghafari, M., Omidi, L., Kalantari, S. and Asadolah-Fardi, G., 2015.
The influence of safety training on safety climate factors in a construction site. International
Journal of Occupational Hygiene, 6(2), pp.81-87.
Kelland, M.A., 2014. Production chemicals for the oil and gas industry. Boca Raton: CRC
Press.
Li, W., 2014. Risk assessment of power systems: models, methods, and applications. New
Jersey: John Wiley & Sons.
Lindøe, P.H., Baram, M. and Renn, O. eds., 2013. Risk governance of offshore oil and gas
operations. Cambridge University Press.

12
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
Mason, K.L., Retzer, K.D., Hill, R. and Lincoln, J.M., 2015. Occupational fatalities during
the oil and gas boom— the United States, 2003–2013. MMWR. Morbidity and mortality
weekly report, 64(20), p.551.
Offshore Statistics. 2018. HSE UK. Available at: http://www.hse.gov.uk/offshore/statistics
[Accessed on 6 Aug 2018]
Paterson, J., 2017. UKCS Health, Safety and Environmental Law and Regulation.
In Offshore Oil and Gas Operations, Principles and Practice: Environment, Health and
Safety Management, International Centre for Oil and the Environment. 3(3), pp.23-34.
Paterson, J., 2017. Behind the Mask: Regulating health and safety in Britain's offshore oil
and gas industry. Abingdon: Routledge.
Retrieved from: https://worksmart.org.uk/health-advice/health-and-safety/employer-duties/
what-health-and-safety-work-act [Accessed on 8th August 2018]
Rösslein, M., Liptrott, N.J., Owen, A., Boisseau, P., Wick, P. and Herrmann, I.K., 2017.
Sound understanding of environmental, health and safety, clinical, and market aspects is
imperative to clinical translation of nanomedicines. Nanotoxicology, 11(2), pp.147-149.
Shinbaum, S., Crandall, P.G. and O'Bryan, C.A., 2016. Evaluating your obligations for
employee training according to the Food Safety Modernization Act. Food Control, 60, pp.12-
17.
Shuen, A., Feiler, P.F. and Teece, D.J., 2014. Dynamic capabilities in the upstream oil and
gas sector: Managing next generation competition. Energy Strategy Reviews, 3, pp.5-13.
Suter II, G.W., 2016. Ecological risk assessment. Florida: CRC press.

13
RISK MANAGEMENT AND SAFETY IN THE UK OIL AND GAS SECTOR
Torres, L., Yadav, O.P. and Khan, E., 2016. A review on risk assessment techniques for
hydraulic fracturing water and produced water management implemented in onshore
unconventional oil and gas production. Science of the Total Environment, 539, pp.478-493.
Worksmart.org.uk 2018 WHAT IS THE HEALTH AND SAFETY AT WORK ACT?
Yusuf, Y.Y., Gunasekaran, A., Musa, A., El-Berishy, N.M., Abubakar, T. and Ambursa,
H.M., 2013. The UK oil and gas supply chains: An empirical analysis of adoption of
sustainable measures and performance outcomes. International Journal of Production
Economics, 146(2), pp.501-514.