The Society of Petroleum Engineers (SPE) Technical Report, "Getting to Zero and Beyond: The Path Forward" sets the stage for continuing the discussion across the industry of the essential items the industry must undertake attain and sustain zero harm. Between 2009 and 2016, the SPE facilitated a series of global sessions to develop ideas for the continued improvement of Health, Safety and Environment (HSE) in the industry. These sessions brought together leaders from across the oil and gas industry, government, and academia representing diverse disciplines to discuss a simple question: How can the oil and gas industry achieve zero harm? The diverse group of participants generated many valuable ideas for a "step change" in performance, and they precipitated alignment around a vision of safety, specifically the expectation of zero harm. What the participants identified and the authors emphasize is that the industry must unequivocally set an expectation of zero harm and urgently commence with the required breakthrough in thinking, collaboration and an approach to achieve zero. For the industry, this includes the following: Define a safety vision in which zero is an attainable expectation today - not a future goal.Learn from other industries mature in human factors with the expressed intent to progress the application of human factors across the oil and gas industry.De-emphasize lagging performance indicators (injury rates) and utilize more leading indicators to ensure a progressive and preventative focus on the effectiveness of safeguards and risk reduction.Establish a no-risk-to-sharing culture - a commitment of collaboration - across the industry with the expressed intent to overcome perceived risks and competition barriers.Remove barriers to open sharing of lessons learned from major incidents, high-potential near misses and projects where, although complex and with considerable risk, the work was executed without incidents.Work with regulators to ensure they can match the best minds in industry so competent discussions about the risk-management strategies are occurring. For individual companies the actions include: Realize an interdependent HSE culture demonstrated by a commitment to a collaborative environment and consistent safety culture at the worksite regardless of company position (operator, service company, specialty contractor).Achieve operational ownership of HSE.Ensure sustainable HSE leadership. Ensuring an industry-wide commitment to the expectation of zero harm will be additive to the ongoing efforts of companies integrating elements of human factors to improve human performance. These efforts are aligned to High Reliability Organizations (HROs) and are an important evolutionary step for oil and gas companies to reach and maintain a sustainable "Getting to Zero" culture. It is this culture that helps make the expectation of zero harm attainable.
Exploration and production (E&P) companies enter joint-venture partnerships as a way to limit their risks in operations and projects. Over the past few years, most major international oil companies (IOCs) have grown their NOJV portfolios. Production figures from 2012 show that non-operated production accounted for more than 41% of all global production of the supermajor operators (e.g. 22% for Chevron, 40% for Shell, 41% for Eni and 44% for ExxonMobil).While major E&P companies may employ rigorous systems for managing risks in their own operations, until recently they have largely maintained a Љhands offЉ approach with their NOJVs. Now, in response to concerns over major liability risks, most major IOCs have begun to implement programs to assess and manage risk in their NOJV partners' operations. Many independent E&P companies continue to assess NOJV risk ad hoc or not at all. This paper describes the challenges faced and the effective strategies discovered by E&P companies implementing risk management programs for their NOJVs. A literature review on the topic identified key limits faced by non-Operators and the opportunities available for managing NOJV risk. Interviews with HSE leaders in a variety of E&P companies (from ЉsupermajorЉ to small independents) as well as with business and legal consultants revealed best practices and common challenges (e.g. contract restrictions, cultural biases and legal misperceptions). These insights are summarized in a list of successful strategies for NOJV risk management programs, which may be useful for leaders developing, implementing or improving NOJV risk management programs within their own companies.
For Chevron Environmental Management Company (CEMC)—the operating company responsible for managing remediation, restoration and infrastructure abandonment projects around the world—contractor safety management (CSM) is critical. With a total workforce that is 90% contracted and which works over 3 million hours annually on many diverse project sites around the world, the safety performance of our third party suppliers is fundamental to our success. CEMC followed Chevron's Contractor Health, Environment and Safety Management (CHESM) Expectations—a component of Chevron's Operational Excellence Management System ¹ (OEMS)—as a model to establish an effective program. This paper will describe Chevron's CHESM Expectations and will tell the story of CEMC's development, deployment and improvement of its own CHESM process—first in North Amercia and now globally. Introduction Chevron Environmental Management Company (CEMC) is a service company within the Chevron Corporation responsible for infrastructure abandonment and environmental remediation from Chevron operations around the world. CEMC work products include environmental assessment and monitoring, onshore and offshore facility deconstruction, well plug and abandonment, excavation, construction and operation of soil and groundwater remediation systems. Within the Chevron Corporation, CEMC is developing a reputation for excellence in project management and contractor management. CEMC is experiencing rapid growth in global operations such that EMC's business has more than doubled in the past four years. Currently, CEMC employs 175 full time staff and has the equivalent of 2000 contractor personnel. This adds up to over three million workforce hours expected in 2007. CEMC is striving to achieve world-class safety performance, but we see three key challenges to this:○Our workforce is highly leveraged with contract companies○Our workforce is geographically and functionally diverse; working on projects from major excavations in downtown San Francisco to offshore well plug and abandonment in the Gulf of Mexico to environmental projects in Zambia, Benin and dozens of other countries around the globe○The safety culture and performance of the remedial construction industry lags behind the standards of our clients, the Chevron upstream and downstream operating companies. Bringing our contractors up to CEMC standards requires a systematic and consistent effort From its inception in 1998, CEMC has had strong elements of contractor safety management including engaged leadership, many good contractors and strong project management skills. However, prior to 2005, CEMC had no systematic process to ensure consistency across its operations and continual improvement of safety performance. In 2001/2002, CEMC executed a strategic sourcing effort that cut the number of contractors it worked with by 50%. In late 2003, CEMC undertook a rigorous review of its contractor safety management program.
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