Economic Impact and Risk Assessment of Sand and Dust Storms (SDS) on the Oil and Gas Industry in Kuwait

Abstract

There is a lack of published research on the economic effect and the risk associated with sand and dust storms (SDS) worldwide. The objectives of this study are to estimate the economic impact of SDS on the oil and gas industry in Kuwait, to estimate a risk index for each loss, and to recommend a sustainable system for the mitigation of the damaging effects and economic losses of infrastructures. Hot spots of wind erosion, wind corridors, and dust frequency and severity formed the basis to locate the most susceptible oil and gas fields and operations. Ten sectors with potential loss vulnerabilities were evaluated: exploration, drilling, production, gas, marine, soil remediation, project management, water handling, maintenance, and research and development. Sand encroachment, although not a sector per se, was also considered. The results indicate that sand, and to lesser extent dust, are damaging and costly to the oil and gas infrastructure of Kuwait, with an economic cost estimation of US$9.36 million, a total of 5159 nonproductive lost hours, and 347,310 m3 of annual sand removal. A risk assessment identified three sectors with the highest risk indices (RI): drilling (RI = 25), project management (RI = 20), and maintenance (RI = 16). Sand encroachment also constituted a high risk (RI = 25). Mitigation of sand storms using a hybrid biological–mechanical system was shown to be cost-effective with an equivalent saving of 4.6 years of sand encroachment. The hazard implications of sand storm events continue to be a major concern for policy-makers given their detrimental economic impacts, and require that government officials wisely allocate investment budgets to effectively control and mitigate their damaging effects.