Offshore Petroleum Industry Research Articles

Offshore oil and gas occupational accidents—What is important?

Occupational accidents continue to present a problem to industry in general and the offshore oil and gas business in particular. To address this concern, a quantitative model capable of predicting occupational accident frequency in the offshore petroleum industry is being developed. The model offers a means to optimise safety spending, thereby maximising benefits to personnel and the organisation. As input to the development of the model, industry safety experts were polled with respect to the relative importance of a series of influencing factors. These included elements directly affecting accidents, organisational issues, and external factors. A questionnaire was the chosen method to consolidate industry opinion. The results of the questionnaire are presented here, together with a discussion, interpretation, and conclusions.

Major hazard risk indicators for monitoring of trends in the Norwegian offshore petroleum sector

The Petroleum Safety Authority Norway (PSA, formerly Norwegian Petroleum Directorate) took in 1999 the initiative to develop a method in order to assess trends and status for the risk levels in the Norwegian offshore petroleum industry. A method was developed, and a pilot study report was issued in April 2001, covering the period 1996–2000. Annual updates have been performed since then, and the latest report covers the period 1996–2004. The statistical approach is based on recording occurrence of near misses and relevant incidents, performance of barriers and results from risk assessments. Of similar importance is an evaluation of safety culture, motivation, communication and perceived risk. This is covered through the use of social science methods, such as questionnaire surveys and a number of interviews, audit and inspection reports as well as accident and incident investigations. There are also indicators for occupational accidents and occupational illness/-physical working environment factors. The focus is on the major hazard risk components for personnel staying on the offshore installations. An overview of the indicators used to illustrate these risk aspects is presented, followed by a discussion of the analytical approach used for these indicators. Results from the risk assessment for the Norwegian Continental Shelf in the period 1996–2004 are used throughout for illustration, and discussion of challenges.

Proposing a coordinated environmental effects monitoring (EEM) program structure for the offshore petroleum industry, Nova Scotia, Canada

Abstract Environmental effects monitoring (EEM) identifies, quantifies, and compares predicted environmental impacts of a proposed industrial project to those observed after the project has been developed. Several EEM program structures exist, while the structure used by Environment Canada to monitor impacts of the pulp and paper industry has proven to be effective. The aim of this study is to provoke discussion on the development of an effective and coordinated petroleum EEM program structure for the offshore of Nova Scotia, Canada. A structure that supports development of a national EEM program for the petroleum industry is then proposed. Advantages of a coordinated EEM program structure include: (1) reduced cost of the EEM; (2) fewer gaps and less overlapping of responsibilities; (3) fewer calculated risks to the marine environment; and (4) improved environmental safeguards.

Use of risk acceptance criteria in Norwegian offshore industry: Dilemmas and challenges

Risk analyses have been used in the Norwegian offshore petroleum industry for more than two decades. The analyses have been closely linked to the use of risk acceptance criteria (RAC). This paper gives a short review of the motivation and use of RAC in the management of risk at offshore installations. Focus is on the present situation and challenges in the Norwegian petroleum industry. The paper will discuss some recommended principles for arriving at risk acceptance. The relation between the acceptability of risk and the cost-benefit of risk reducing measures is also considered, mainly in the context of the ALARP (As Low As Reasonably Practicable) principle.

LEGAL FRAMEWORK AND LIABILITY OF LEAVING OIL AND GAS FACILITIES IN-SITU OR DEEP SEA DISPOSAL ON AUSTRALIA’S CONTINENTAL SHELF

Australia’s offshore petroleum industry is beginning to mature and many of its offshore oil and gas production facilities are reaching the end of their operational life. These facilities consist of an array of infrastructure including wells, wellheads, platforms and monopods of various construction, pipeline and flowlines, and anchors and risers. Many of these facilities will need to be decommissioned at the end of their operational and economic life in a safe and environmentally responsible manner.The Australian government has the jurisdiction to direct a company to remove all facilities associated with offshore production projects located on Australia’s continental shelf, but there is room for discretion for other decommissioning options. The manner in which facilities are decommissioned must be assessed on a case-by-case basis, taking into account factors such as technical feasibility, commercial risk, safety and social impacts, costs and environmental effects.Two decommissioning options appropriate in some instances are to leave selected facilities in-situ or dispose of a facility to some other location on the continental shelf, preferably in deep water. Residual liability refers to the responsibility and liability associated with leaving facilities on the seabed. If a facility is allowed to remain on the seabed, questions related to residual liability arise:who is responsible for any facility left on the seabed; andwho is liable to pay for compensation in the event that this facility is allowed to remain in place on the seabed and injury or damage is caused to a third person or property?There is no universally accepted practice in relation to residual liability in relation to decommissioning. In some countries, the State assumes responsibility; in other countries the company remains responsible in perpetuity. This issue still needs to be clarified in Australia.

Myths and Realities about Petroleum-Related Development: Lessons for British Columbia from Atlantic Canada and the North Sea

The government of British Columbia has recently agreed to lift the moratorium on offshore petroleum exploration on Canada’s west coast, and the federal government has been asked to follow suit. There is a strong possibility, therefore, that drilling for oil and gas offshore British Columbia will begin in the near future. Some coastal communities, hard-hit by resource problems in forestry and fisheries with attendant unemployment and out-migration, have been lobbying in favour of lifting the moratorium, while environmentalists and some First Nations people have been lobbying equally as hard for its continuance. Predicated on the assumption that BC may well be on the verge of developing an offshore petroleum industry, this article essay explores several issues related to the development of such an industry. It poses the question: if the province is to develop an offshore oil and gas industry, how should it go about it in as environmentally and socially responsible a way as possible? Fortunately for British Columbia, two provinces on Canada’s east coast, Newfoundland and Labrador, and Nova Scotia, already have established offshore petroleum industries. They have a 40-year history of experiences in both the exploration and production phases of offshore development. This essay provides an overview of the Atlantic Canadian and North Sea experiences. It argues that it is, in principle at least, feasible to manage offshore developments in a socially and environmentally responsible way, and in such a way that local people and communities, including First Nations, can be beneficiaries. There is nothing automatic about this, however. It will require enlightened governance at both the provincial and federal level, and a willingness to devolve to effected communities enough decision-making authority to negotiate with the oil companies from a position of strength. Success will depend on local people becoming well informed about the industry and taking the lead in determining the conditions under which development can proceed.

Will stricter regulations improve disaster management? A discussion of the Norwegian Petroleum Directorate's experience with the use of functional legal requirements

During the relatively short history of the offshore petroleum industry in Norway, the Norwegian authorities have significantly changed their approach to regulating safety and emergency response. When it all started, back in the mid 1960s and early 1970s, the obvious choice for the newly born Norwegian Petroleum Authority was to prepare a number of detailed prescriptive regulations, similar to the approach that had been common in shipping for centuries. Lifeboats to be equipped with four sets of wooden 16 rowing-oars, etc. The regulations had a heavy focus on detailed emergency response-systems and equipment. Back then, that choice was probably correct, supposing the companies dedicated themselves to by compliance. Over the years, these early prescriptive requirements have gradually been replaced by functionally oriented requirements allowing for extensive use of analysis and risk-based approaches, and for increased flexibility with regard to solutions. The intention was to stimulate and draw advantages from improvement processes in a modern industry dedicated to by objectives to achieve the right focus on accident prevention rather than protection. The general experience with the new approach has been very good, even though there have been indications that a few might have pulled their risk-based approach somewhat too far. By putting too much of their effort into accident prevention only, they might have been blinded and misled into neglecting the adversity of the accidents, should they happen. History is, after all, still the best evidence that hazards cannot be completely prevented. This is why the new regulations of the Norwegian Petroleum Directorate are now based on the principle of defence in depth, which can shortly be explained as a combined risk- and vulnerability-based approach. The general and overruling functional requirement is to reduce risk until the costs become unreasonably disproportionate to the risk reducing effect. The risk reduction shall preferably be obtained by applying inherently safe designs, complemented by barriers to effectively prevent the escalation of failures, hazards and accidents and to limit possible harm. This paper will discuss the background to this change of approach in more detail, and will give a comprehensive presentation of the newly adopted principle of defence in depth as a drive towards improved risk management in the Norwegian offshore petroleum industry.

Moldi(Tm): a Fluid Permeation Model to Calculate the Annulus Composition in Flexible Pipes

In the offshore petroleum industry, flexible pipes, used as risers or flowlines, are made with internal and external polymer sheaths that ensure internal fluid and outer seawater integrity. These polymers exhibit permeability towards some gases which can create potential damage mechanisms (CO2 corrosion and hydrogen attack) and reduce the lifetime of the steel layers located between the internal and the external plastic sheath. These damage mechanisms are associated with water condensation, which must therefore be predicted. The following paper describes a finite element model named MOLDI(tm) used to predict diffusion of gases through layers of flexible pipe versus time. The temperature gradient in the pipe is taken into account, as permeation rates depend on temperature. It is coupled with a thermodynamic flash calculation that gives vapor and liquid phases, compositions and volumes in the annulus. Associated mathematical models and resolution methods are examined, as well as the coupling of diffusion and phase prediction. MOLDI(tm) was programmed under Matlab, with a friendly graphical user interface that helps input and output of data and results. This paper illustrates the possibilities of this software.

Development of an Incident Investigation Process

In many industries a traditional approach to incident investigation is still used, especially in incidents with limited consequences, and near-misses. The systematic identification of underlying and root causes is often limited to accidents with more serious consequences. While it is widely acknowledged that human error plays a role in a large number of incidents across all industries, many still rely on methods such as the International Safety Rating System for classifying the causes of incidents. In such systems, factors which can influence human performance, such as training, procedures, work systems, etc., are only superficially addressed. This results in data which are of little value in developing remedial actions to prevent reoccurrence. This paper outlines a simple but systematic incident investigation process, which is aimed at identifying the human and organisational causes of everyday incidents in the offshore petroleum industry.

Some Observations on the Heave Behavior of Spar Platforms

The spar platform is receiving considerable attention from the offshore petroleum industry, especially following the successful introduction of the first production spar in the Gulf of Mexico by Oryx and CNG in 1996. This paper presents a collection of observations regarding important heave characteristics of spar platforms that have been gleaned from wave-basin model tests, numerical simulations, and comparisons of the two. These observations are pertinent to the heave performance of “classic” (uniform-cylinder) spars. Excessive spar heave could be problematic for production and export risers. Spar-system characteristics affecting heave include draft, heave natural period, heave-damping augmentation, and presence/absence of a vertical tether/tendon. Tether requirements for shallow-draft spars have been found to be much less onerous than once thought; steel tethers yielding a heave natural period of 12 s have been found to be satisfactory. Heave-damping augmentation using multiple “plates” or “disks,” following the work of Troesch at the University of Michigan, has also been found to be quite attractive.

Investing In Opportunity In Atlantic Canada

Abstract As you browse through this issue of the Journal of Canadian Petroleum Technology, I am sure you will find that industry prospects on the east coast of Canada are exciting and dynamic. In my role as Vice President of the Atlantic Canada Opportunities Agency (ACOA) in Newfoundland and Labrador, and as Federal Co-Chair of the Canada/Newfoundland Offshore Development Fund, I have been both interested and engaged in the evolution of the petroleum industry on Canada's east coast. While most members of the Petroleum Society are no doubt wellaware of the rapid growth of the offshore petroleum industry in Atlantic Canada, this issue offers ACOA an opportunity to describe our participation in that development, and the ways in which we can work together to further economic growth in the region. ACOA was established by an Act of Parliament in 1987 to work in partnership with the private sector, and with federal and provincial departments and agencies to increase opportunities for economic growth in Atlantic Canada. In 1996, the Agency became a member of the Government of Canada's Industry Portfolio which consists of 13 departments and agencies. These include Industry Canada, the National Research Council of Canada, Western Economic Diversification Canada, the Canadian Space Agency, and the Business Development Bank of Canada. In Atlantic Canada, ACOA is responsible for the development and delivery of business programs and services which are relevant and sensitive to local needs and conditions, the coordination of federal economic development program activities, and the advocacy of local concerns in the development of national policies, programs and services. To facilitate this mandate, ACOA has offices in each of the four Atlantic provinces and delivers programs created specifically to meet the local needs. In addition, ACOA delivers federal programs such as the Canada Infrastructure Works Program (CIWP), while each office participates in federal-provincial shared cost initiatives which promote economic development. In Newfoundland, for example, the Canada/Newfoundland Agreement on Economic Renewal is a $100 million, five-year fund targeted at tourism, aquaculture and advanced technology. The Business Development Program (BDP) is described as ACOA's flagship. Accounting for approximately 25% of ACOA Newfoundland's annual expenditures, the BDP provides access to capital in the form of interest-free, unsecured, repayable loans. Entrepreneurs throughout the province are creating new jobs, new services and new possibilities with assistance from the BDP. In the petroleum technology sector, the BDP supports small businesses involved in such diverse areas as instrumentation, geomatics, radar systems, ice-detection, seismic technology, model testing, acoustic imaging and non-destructive testing. In addition, ACOA offers its clients assistance in creating business alliances through our Business Networks Program. ACOA has long recognized the integral role which is played by the offshore sector in this province, and has made a significant investment in the development of petroleum technology, and related technologies and services. As exploration continues to confirm predictions of a 500,000 bpd oil industry in the near future, we anticipate increased involvement with new and expanding businesses and related infrastructure development.

New Relationships on the East Coast: Alliancing, Labour Relations at Hibernia, the Sable Gas Joint Public Review

The authors examine the need for new and innovative approaches to oil and gas operations in light of the changing economic culture. In particular, the need for environmental assessments, alternative financing arrangements, complex tax rules and increased cross-border associations all require a more cooperative and flexible approach to completing a successful resource project. The authors canvass three major developments: (1) the need for and the benefits and disadvantages of alliancing including contract formation, current alliances in the Canadian off-shore petroleum industry; (2) the impact of labour relations on the off-shore petroleum industry using the Hibernia project as an illustration; and (3) the joint public review panel on the Sable Gas project as an indicator of public participation.

Bearing capacity of model piles driven into dense overconsolidated sands

Model piles were driven into dense siliceous sand samples and tested in a large calibration chamber. Axial tension and compression tests were performed on open-ended pipe piles. The objective of this research was to study the effect of overconsolidation on the bearing capacity of piles driven into dense sands representative of North Sea soil conditions. Emphasis was put on points of interest for the offshore petroleum industry in particular: dense to very dense normally consolidated (NC) and overconsolidated (OC) sands, unit end bearing and unit skin friction capacities, and comparison with tip resistances from cone penetration tests. Design parameters are proposed for computing the axial bearing capacity of piles driven into dense to very dense siliceous sands. They are compared with those given in the current American Petroleum Industry's Recommended Practice 2A document. A relationship between CPT cone resistance and ultimate unit end bearing and skin friction capacities of piles is also proposed.Key words: model test, dense sand, offshore pile driving, axial capacity, end bearing, skin friction, design parameters, cone penetrometer.

THE TOTAL MANAGEMENT OF NORM IN THE OFFSHORE PETROLEUM INDUSTRY

Naturally Occurring Radioactive Materials (NORMs) in the offshore petroleum industry are generally associated with the formation of scale in pipes and vessels. As scale and sludge contain radioactive isotopes of radium they are in the category of Low Specific Activity (LSA) NORMs. Handling of NORMs creates issues involving occupational health and safety, environmental protection and radioactive waste management and waste disposal. Barium(Radium)Sulfate scale is highly insoluble and can create serious production problems by clogging pipes and valves.The paper discusses the external gamma radiation monitoring at the external surfaces of well and oil production pipes which assists in establishing the scale thickness patterns in pipes and in identifying the optimum location of a scale inhibitor injection point.To minimise radiation doses received by workers special NORM handling Work Procedures and Instructions supported by radiation protection training need to be developed. If facility personnel are trained in radiation protection and Work Procedures and Instructions are adopted it is possible to effectively manage personal radiation exposures below the public limit of 1 millisievert per year. Under such conditions no personal radiation monitoring during routine operations is required and the assessment of routine annual external radiation doses may be carried out through yearly external gamma radiation surveys of of fshore petroleum production facilities.The NORM waste cannot be disposed of onshore within the same disposal sites used for general non-radioactive waste. In Australia only the NORM waste generated in Western Australia can be disposed of onshore in an official low level radioactive waste disposal facility. It is important that Governments of other States and Territories address the onshore NORM waste disposal option. Regulations should also address a screening method for scrap metal contaminated by NORMs to be released for smelting.

Membrane separation of produced water

Each time regulatory agencies initiate more stringent environmental controls, treatment technologies are refined to meet the updated standards. Centrifuges and hydrocyclones are, by and large, producing satisfactory effluents for meeting current quality requirements for the offshore petroleum industries. The European standard for effluent from onshore petroleum activities, however, requires less than 5 mg/l total hydrocarbons (HC) and less than 10 mg/l suspended solids. Such low concentrations are out of reach for the above classical separation processes. The amount of produced water in the North Sea is projected to increase by a factor of 6 from 1990 to the year 2000; from 16 to 90 million cubic meters each year. Produced water is the predominant source for oil discharges. The synergistic effects of chemicals, oil and dissolved components in the produced water effluent are given increased attention, with expectations of tougher effluent criteria. Microfiltration (MF) and ultrafiltration (UF) pilot trials with produced water from the Snorre field in the North Sea showed that UF, but not MF, could meet more stringent effluent standards for total HC, suspended solids and dissolved constituents. Total HC in the produced water was typically 50 mg/l and was reduced to 2 mg/l in the UF permeate (96% removal). The aromatics benzene, toluene and xylene (BTX) were similarly reduced by 54% and the heavy metals copper (Cu) and zinc (Zn) by 95%. UF trials were performed with organic tubular membranes with typical transmembrane pressures between 6 and 10 bars. The feed velocities through the tubes were between 2 and 4 m/s. Flux varied from 140 to 550 l/m2/h (lmh) at a produced water temperature of 60°C and membrane molecular weight cut-off between 100,000 and 200,000 daltons. By recirculating UF retentate as membrane feed, a volume reduction (VR) of 24 was obtained in the trials; i.e., 96% permeate recovery. The limited volume of produced water available in the feed tank negated further volume reduction. Full-scale design is based on permeate recovery of 99%. No irreversible fouling of the membrane surface was experienced. The cleanwater flux was restored after chemical cleaning. The alkaline detergent Ultrasil 11 was chosen as the optimal cleaning agent.

Membrane separation of produced water

Each time regulatory agencies initiate more stringent environmental controls, treatment technologies are refined to meet the updated standards. Centrifuges and hydrocyclones are, by and large, producing satisfactory effluents for meeting current quality requirements for the offshore petroleum industries. The European standard for effluent from onshore petroleum activities, however, requires less than 5 mg/1 total hydrocarbons (HC) and less than 10 mg/1 suspended solids. Such low concentrations are out of reach for the above classical separation processes.The amount of produced water in the North Sea is projected to increase by a factor of 6 from 1990 to the year 2000; from 16 to 90 million cubic meters each year. Produced water is the predominant source for oil discharges. The synergistic effects of chemicals, oil and dissolved components in the produced water effluent are given increased attention, with expectations of tougher effluent criteria.Microfiltration (MF) and ultrafiltration (UF) pilot trials with produced water from the Snorre field in the North Sea showed that UF, but not MF, could meet more stringent effluent standards for total HC, suspended solids and dissolved constituents. Total HC in the produced water was typically 50 mg/1 and was reduced to 2 mg/1 in the UF permeate (96% removal). The aromatics benzene, toluene and xylene (BTX) were similarly reduced by 54% and the heavy metals copper (Cu) and zinc (Zn) by 95%.UF trials were performed with organic tubular membranes with typical transmembrane pressures between 6 and 10 bars. The feed velocities through the tubes were between 2 and 4 m/s. Flux varied from 140 to 550 l/m2/h (lmh) at a produced water temperature of 60°C and membrane molecular weight cut-off between 100,000 and 200,000 daltons.dBy recirculating UF retentate as membrane feed, a volume reduction (VR) of 24 was obtained in the trials; i.e., 96% permeate recovery. The limited volume of produced water available in the feed tank negated further volume reduction. Full-scale design is based on permeate recovery of 99%.No irreversible fouling of the membrane surface was experienced. The cleanwater flux was restored after chemical cleaning. The alkaline detergent Ultrasil 11 was chosen as the optimal cleaning agent.

Offshore Vessels and Their Unique Applications for the Systems Designer

Offshore vessels are industrial vessels primarily utilized in the offshore petroleum industry for exploration or exploitation of subsea resources. The most common types of offshore vessels in use today are the column-stabilized semisubmersible unit, the self-elevating or jack-up unit, and surface-type units such as the drillship and barge. In the truest sense, whether they are operational afloat, as are the semisubmersible, drillship and barge, or operational while bottom supported, as is the jack-up, due to their mobility they are marine vessels with systems nominally the same as conventional ships. Due to their mission requirements, however, their systems have features that are unique when analyzed by the traditional marine engineer, and although these vessels contain mechanical and electrical components similar to those used in conventional ships, they serve different systems and have unique applications. This paper discusses the major marine engineering aspects of mobile offshore vessels that are unique and which have made them a distinct category of marine vessel.

Norway's offshore petroleum industry — problems and prospects

Abstract Norway, among the world's top three offshore crude and natural gas producers, has enough offshore reserves to assure it an important place in world production for several decades. Drillers discovered petroleum within Norway's North Sea region in 1968. Production first began there in 1971, should occur in the Norwegian Sea by late 1993, and begin in the near future within the Barents Sea. The isolation of the Barents Sea fields from markets presents difficult transportation problems, requiring the liquefaction of natural gas, rather than direct long‐ distance pipelining. Norway's petroleum industry has a major economic impact on foreign exports, on national income, and on employment. Although the country's offshore petroleum industry seems secure for the near future, the national and local governments and industry need to develop greater industrial diversification within the export sector.

Can offshore experience help in reducing onshore losses?

Norway's offshore petroleum industry has made very substantial progress within loss prevention over the last ten years. There is some basis for claiming that the industry is now a world leader in this area. At the same time, onshore Norwegian society rates poorly among the Scandinavian countries with respect to some key loss statistics. Recent application of offshore-generated know-how in a few sectors onshore has given substantial improvement. This paper suggests a model for use in systematically bringing loss prevention knowledge and progress to onshore society and to third-world countries.

SAFETY IN THE OFFSHORE PETROLEUM INDUSTRY: THE NEW REGIME

Following the recommendations of the UK Cullen and COSOP reports, a new regulatory and operational safety regime is being introduced across Australian territorial waters for the offshore petroleum industry. This paper details the concepts behind the new regime including the development and implementation strategies employed to introduce it and the implications to industry and government instrumentalities. The recognition that safety in the work place is an outcome of managerial commitment and a function of work system control is resulting in legislative reforms that will reduce the focus on physical compliance, in favour of a goal-setting legislative approach that places emphasis on systems of managing safety at the work place. By focussing upon ends rather than means, objective based regulation requires organisations to manage the design, construction and operation of facilities to reduce risk to a 'reasonably practicable level*. The details of the management arrangements and risk assessment studies once submitted in a 'safety case' and acknowledged by the regulator, form a co-regulatory guidance document that sets both the standards to be achieved and the mechanism for achieving them. Auditing of the operator against an accepted safety case will occur on a regular basis. Driven by measurement of an operator's safety performance, selected systems will be targeted and audited against the safety case by a team of auditors composed of both government inspectors and operator personnel. Performance measures will be both proactive and reactive in nature and include among other measures, results obtained through the newly created national data base for incidents and accidents. Preparation and assessment of safety cases provides regulators and operators alike with difficulties. Consistency of assessment and objective determination that acceptable minimum standards have been met provide a challenge to government agencies and to the petroleum industry. Recognition of the nature of this challenge has led to the adoption of Quality Management principles among government utilities. A key feature of the Quality Management System will be the introduction of systems that drive change through cyclic updates of the safety case assessment procedures.The safety case concept institutionalises a dialogue between regulator and operator that will facilitate the preparation, submission and assessment of the safety case. This initiative provides for a staged submission process to correspond to the development phase of the facility. It is considered that this methodology will ensure minimal delays in assessment and provide certainty in the business planning process. The new safety case regime provides for a greater level of employee participation both in the preparation of safety cases and the maintenance of safety at the work place. Transparency of approach by both operators and regulators will be needed if public and workforce confidence are to be maintained. Co-operation and continual improvement will hopefully be the hall mark of the Australian safety case regime.