1997 ◽  
Vol 37 (1) ◽  
pp. 714
Author(s):  
H.B. Goff ◽  
R.K. Steedman

Environmental risk assessment is becoming an increasingly important factor in the assessment process for new projects. The oil and gas industry is familiar with assessing and managing risks from a wide range of sources. In particular, risk assessment and management is fundamental to the evaluation and implementation of Safety cases. Risk assessment is essential in valuing exploration acreage. Various industry and government risk management standards and criteria have been developed for public and occupational health and safety.This paper examines the extension of these approaches to environmental risk management for the offshore oil and gas industry and proposes a conceptual management scheme.We regard risk as the probability of an event occurring and the consequences of that event. The risk is classified into four categories, namely:primary risk, which relates to the mechanical oilfield equipment;secondary risk, which relates to the natural transport processes. For example dispersion of oil in the water column and surrounding sea;the tertiary risk, which relates to the impact on some defined part of the physical, biological or social environment; andthe quaternary risk, which relates to the recovery of the environment from any impact.Generally the methods of quantitatively analysing primary and secondary risks are well known, while there remains considerable uncertainty surrounding the tertiary and quaternary risk and they are at best qualitative only. An example of the method is applied to coral reef and other sensitive areas which may be at risk from oil spills.This risk management scheme should assist both operators and regulators in considering complex environmental problems which have an inherent uncertainty. It also proves a systematic approach on which sound environmental decisions can be taken and further research and analysis based. Perceived risk is recognised, but the management of this particular issue is not dealt with.


1999 ◽  
Vol 39 (1) ◽  
pp. 606 ◽  
Author(s):  
R.T. Stoklosa

Stoklosa Engineering has been working with the petroleum industry to develop an environmental risk management methodology that can be generally applied to petroleum industry activities. In particular, the methodology is for assessing and managing ecological risk in sensitive marine environments.This paper introduces a management and technical methodology for the risk assessment process that has been applied to planning scenarios for the Gorgon LNG Project. The methodology has evolved from earlier efforts by petroleum operators and government in Western Australia to quantify ecological risk. The principles of Standards Australia risk management publications, State risk management initiatives and international approaches have been preserved in the methodology.The basis for a quantitative analysis of the likelihood of an incident is described, with a qualitative or semiquantitative analysis of the severity of the potential consequences. The technical approach adopts the principles of AS/NZS 4360 for risk management, and characterises risk for decision makers in an unambiguous manner. The methodology leads to a clear understanding of the benefits of risk management, and allows proponents the opportunity to reduce risk to acceptable levels. The risks of development should be interpreted in the context of naturally occurring hazards to environmental systems (e.g. cyclones and coral spawning slicks), human activities (e.g. recreation, fisheries and aquaculture), and the natural variability of ecosystems.The Gorgon LNG Project case study characterises risk in terms of credible incident scenarios and baseline operational activities from project planning scenarios. The inputs to the risk assessment are release scenarios, fate and transport modelling, response mechanisms in sensitive species, and recovery mechanisms following exposure. The methodology can be broadly applied to offshore and onshore development projects and environmental management programs, as it is presented as a repeatable process that can incorporate various types of risk analysis methods.


2002 ◽  
Vol 04 (01) ◽  
pp. 1-29 ◽  
Author(s):  
JOHN HOOD ◽  
SCOTT NICHOLL

In recent years, there have been significant developments in the field of environmental risk assessment and management. Its role in the corporate setting has been strengthened by claims that financial results and corporate reputation can be significantly improved through environmental management. Risk assessment and management provides one of the most comprehensive and cost-effective mechanisms for managing environmental issues and has subsequently led to the adoption of risk-based environmental management. This research examines the current discussion in the field of environmental risk management and undertakes a survey of 112 UK companies to ascertain how environmental risk assessment is perceived and what role it has in environmental management, including environmental reporting and accounting. The paper concludes that whilst there have been some positive developments in the area, companies, governments and regulators still have work to do in ensuring the adoption of best practice.


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