Hazard Identification and Risk Assessment

Hazard Identification and Risk AssessmentOil and gas exploration and production activities urinate increase tremendously as petroleum has become the backb bingle of the worlds economy. The industry has expanded significantly throughout the world.As the rock oil and gas industry enlarges throughout the world, its impacts on lives and environment concord been appalling. Numerous sp calamitys, fires, toxic emissions, blowouts and personnel injuries have been recorded in recent times in the oil industry. The most recent one is the Macondo disaster with its tragic loss of life, devastating impact on the Gulf Coast and financial loss to the companies involved.Culpable companies have lost billions of dollars imputable to lawsuits, compensations and oil spill clean-ups. This has led to some oil companies collapsing and others suffering credibility loss in the industry.Concerns about how HSE flaws be killing people, damaging properties, polluting the environment and killing condescension es have been raised by stakeholders, workers and the general public.New reforms have been make with regulators making HSE a air case for companies more especially small-to middling- surface companies. Managers of these small to ordinary companies must have a company policy of achieving environmental and business goals through HSE. Legislation should be made with full compliance by some(prenominal) employers and employees.There should be performance monitoring and continual improvement in these policies. However, the success of whichever process or system in place still hinges on the attitudes and behaviours of people in the company health safety Executive, 2011.This report elaborates on the need to incorporate HSE into business and describes how good HSE centering system could be implemented by small- to medium- sized oil businesses.1.0 IntroductionThe major aim of employing HSE in business is to take advanced precautions a puckerst workplace mishaps, environmental impacts a s well as financial losings due to accidents and environmental pollutions.A companys attitude towards HSE affects the workforce, surrounding environment and business productivity.The decision to integrate HSE into business is a high level policy billing of a company. Many businesses adopted this tool and have made tremendous gains. It is on this premises that this report seeks to highlight the need for small- to medium- size oil companies to inccorparate HSE into business irrespective of the cost. The report also describes how HSE management systems could be implemented.Small-to medium-sized companies should not see spending money on HSE as expensive add on to companys reckon but a profitable investment.These companies should forecast the benefits that could be reaped in future. This analysis will give an opportunity to comp atomic number 18 the financial costs involved in the implementation of HSE management systems and benefits reaped after implementation.The method of HSE imple mentation should be understandable and practical to all the people that atomic number 18 affected by these systems. An important necessity is that, the management systems at all levels must be clearly defined in a written document that is available to all.2.0 DiscussionSmall to medium size Oil Companies should integrate HSE into business as bottom-line of business success. Managers must first consider the economic influence that accidents and environmental pollutions have on the business before taking this decision.2.1 bes versus BenefitManagers have to analyse how much it will cost the business to introduce HSE management system and the cost of accident or environmental pollution if it occurred.The cost of implementing HSE management systems could be high. Indeed running a good HSE systems come with high costs. These costs should be seen as investment but not liabilities because the business turns to gain greatly if the objectives of running such systems are achieved.Cost and b enefit analysis on the implementation of HSE management systems will always prove that safety is good business Offshore Contractors Association, 20032.2 Objectives of HSE in BusinessHSE is incorporated into business with the aim ofA safer working environmentbetter morale and motivation amongst workersA healthier working environmentIncreased performance levelsAvoiding civil claims, court fines and litigationsReducing insurance costReducing disease and accidentsReducing impacts to the environment.Improving public imageIncreasing growthConforming to standards and regulations in the industry.OCA, 20032.3 health, preventive and Environment Management SystemHSE Management systems ensure that HSE issues are systematically identified, controlled and monitored within the business.2.4 PolicyProper HSE management require an HSE policy statement, stating the companys commitment to the health and safety of workers as well the environment. Management must show up high commitment to this frame work, setting HSE in perspective with business objectives.The policy statement should serve as the foundation for the implementation of the HSE management system. It should be the cornerstone of any HSE decisions and marchs.Employers and employees must understand this framework and what is require of them in order to realise the business targets. To make the HSE policy effective, management and employees must be unravel to it. The policy statement should outline the obligations and answerability of management and supervisors as well as employees. The policy must be subjected to continual review.HSE program has to be authentic to meet the objectives and commitments of the HSE policy.2.5 Hazards Identification and Risk AssessmentTo ensure that HSE becomes a business culture, management must develop structures and systems which are intended to control risk of exposure found on hazard identification and risk assessment.Anything or practices that have the potential to harm life, h ealth, environment and properties should be identified. Some hazards are easily identifiable because they are common to the industry where as others are not.Managers must involve the employees in the hazards identification because they are the people which are affected directly by these hazards. They should postulate from them which of the machines, equipment, procedures and practices endanger their lives. They should also consult environmental specialists to know which of their actions and operations pose dangers to the environment.Managers should check through workplace accident records to find out which of the companys operations have been causing injuries and fatalities over the years.Identified hazards must be assessed to know the seriousness of each one of them and measures to control these hazards should be decided. Controlling the risks associated with these identified hazards, reduce ill health and accidents at the work place.Managers and employees should continually look f or hazards at the workplace because some hazards are only discovered with time such as sicknesses caused by long- term exposure to certain radiations and chemicals. The hazards discovered must be ranked as be High, Medium or Low to know the best action to take in each case.2.6 Risk Management and ImplementationMeasures have to be adopted to get rid of hazards or minimize them. For example if risk involves hazardous chemicals, it should be replaced with an alternative chemical less harmful. In other cases, the use of alternative work methods, design improvements, change of process can erase the risk.Management should involve employees in the entire process of risk management. They should ask workers of any possible solution before it is implemented. They should check that, the measures taking do not cause any impertinent unforeseen hazards.2.7 Measuring performanceThe degree of success of the HSE management systems should be established. Management should evaluate the systems to k now if the objectives of implementation is being realised. Performance measuring would help management to collect and analyse training about flaws in the HSE management systems.Injuries and accidents should be investigated thoroughly to know their cause. Measures should be made to prevent such accidents and injuries from occurring again.Management should make sure there is regular check on safety equipment to make sure all these are work well. If a flaw is detected in any of the safety equipment, it should be repaired or replaced with a new one.2.8 Reviewing performance and auditingAuditing gives management the opportunity to collect information on the efficiency, effectiveness and reliability of the HSE management system. Auditing enable management to ensure that companys policy is being carried out and the desired impact is being made.There should be regular auditing to assess the systems to know the level of success chalk with the implementation of the system. Any poor practise uncovered should be dealt with.3.0 Justification/Benefits of HSEIt really makes a good business sense to invest in HSE initiatives because the returns are enormous. HSE initiatives protect business from financial losses linked to safety and environmental problems. Lawsuits or fines emanating from accidents are avoided. Such cost can impose an enormous burden on the business.For example, HSE mismanagement led to the death of 15 workers and 108 people in the march 2005, Texas metropolis refinery blast. The CBSs,2007 investigation report highlighted safety culture, regulatory oversight, process safety metrics and human factor as the main cause of the disaster. The report also states that Cost cutting and failure to invest in the 1990s by Amoco and then BP left the Texas City refinery vulnerable to a catastrophe National Wildlife Federations report, 2010Many businesses which suffer major accidents struggle to remain in business and usually end up collapsing or trading their assets off. The Texas Refinery after the blast struggled to come back to operation due to huge financial burden on the company. Eventually, the refinery was sold to Marathon Petroleum Corporation in October 2012. guard duty and health of workers yield quality output which translates to higher productivity and profit because lost work time due to sick leaves, absenteeism is significantly reduced.HSE in business increases morale of workers because if workers do not encounter browse accidents at workplace, it motivates them to give their best output. Contrary, they will adopt a lukewarm attitude towards work if injuries are common in their working environment. Most workers would move to other companies because they feel unsafe. Company may lose competent workers and will impact negatively on productivity.There is also a reputation gain associated with good HSE records leading to business growth. A good reputation invites and retains clients. It makes a company enjoy repeat business from existing clients and also win new contracts ahead of their competitors.4.0 ConclusionSmall to medium sized oil companies in their attempt to grow business to a larger one should make Health, Safety and Environment initiatives, the prime item on their list of initiatives to achieve business goals.They should be concerned with the health and safety of workforce as well as the impacts the business makes on the environment, because the occurrence of a major accident would be detrimental.The financial consequences of an accident coupled with the associated business disruption could force a forbidding burden on the company. Some larger companies have suffered this in the past and could not survive.If any smaller company thinks, integrating and managing HSE systems in business is expensive, allow them try accidents.Small to medium sized oil companies should know that prevention of accidents and pollutions is not only better but cheaper than cure.WORD COUNT 1,820ReferencesALLAN, J.H., 1999. Healt h and Safety at Work. Fifth edition. Leicestershire IOSH and IOSH Services Limited.WATERHOUSE P.,2002. Health and safety Risk Management. second edition. Leicestershire IOSH Services Limited.OFFSHORE CONTRACTING ASSOCIATION, 2003. Guidance Notes of Good Contracting Practice- HSE Guidance for SMEs.online.Aberdeen OCA. on hand(predicate) from http/www.ocainternet.com/publications/HSEguidanceforSMEs.pdf Accessed 14 November 2012.GREENSTREET, B., 2004. The development of case studies that demonstrate the business benefit of effective management of occupational health and safety Research report 249,.online. Reading Health Safety Executive. Available from http/www.hse.gov.uk/research/rrpdf/rr249.pdf Accessed 12th November 2012CHEMICAL SAFETY BOARD, 2007. Investigation Report-refinery explosion and fire.Reportno.2005-04-I-TX. online. Texas CSBAvailable fromhttp/www.csb.gov/assets/documents/CSBFinalReportBP.pdf. Assessed 10th November 2012.NATIONAL WILDLIFE FEDRATION, 2010. Assault on Ameri ca A disco biscuit of Petroleum Company Disaster, Pollution and Profit. online. US NWF Available from http/www.motherjones.com/files/NWF_OilSpillsExplosions_pages.pdf Accessed 19 November 2012.HEALTH SAFETY EXECUTIVE, 2011. Huntsman Petrochemical.online UK HSE. Available fromhttp/www.hse.gov.uk/business/casestudy/huntsman.htm Accessed 20 November 2012.HEALTH SAFETY AND EXECUTIVE, 2011. Health and Safety made simple- The basics for your business. online. UKHSE.Available fromhttp/www.hse.gov.uk/simple-health-safety/ Accessed 30 October 2012.MARATHON PETROLEUM CORPORATION, 2012. Marathon Petroleum to purchase BPs Texas City Refinery online OhioMPC.Available fromhttp//www.marathonpetroleum.com/News/Press_Releases/Press_Release/?id=1742579Accessed second November 2012