Contending with challenges: how the Gulf of Mexico maximises HSE performance

Industry leaders operating in the offshore oil and gas space in the Gulf of Mexico must contend with a number of key challenges to maximise HSE performance, some of these emanate from the nature of the industry, others to the unique character of the North American regulatory environment

Some of the key principle challenges include:

• High risk nature of industry: Employees working within the offshore oil and gas industry can be exposed to a range of dangers including unsafe substances, noise, vibration, radiations, extreme temperatures, and ergonomic hazards. Historically, oil and gas extraction workers in the US face elevated fatal occupational injury rates seven-times higher than all other US workers, according to the Center of Disease Control and Prevention, although fatality rates have been dropping –especially offshore in the wake of the Deepwater Horizon reaction.
• Evolving regulations: The legislative reaction to the Deepwater Horizon disaster brought in a wave of procedures, rules and regulations to tighten up offshore operations with the aim of preventing incidents that could cause harm to workers and the environment. In recent years these have been pulled either way by different administrations and appear constantly under scrutiny. Those regulations for meeting HSE obligations have expressed it can be difficult to keep up and ensure the entire workforce it aligned when the rules are consistently shifting. It can also require significant investment in technology and practices to ensure compliance with new standards.
• Getting workers on board: HSE strategies can only be effective if employees are fully engaged and participate in the delivery of a safety culture. “Safety culture is an integral component of any high-risk industry, and its significance for oil rig operations cannot be overstated,” as stated in a report by Lyons & Simmons around oil rig safety in the US. “It encompasses the attitudes, beliefs, perceptions, and values that employees share in relation to safety within an organisation […] by prioritising safety in every decision and operation, companies can significantly reduce the likelihood of accidents and create a safer workforce for all employees.” Without workers buying into compliant programmes – and incorporating it into every action they take – a successful safety culture cannot be achieved.
• Covid hangover: The global pandemic had a profound effect on the offshore oil and gas industry, particularly in regards to the workforce with a high turnover leading to skills shortages. In regards to HSE, the persisting problem is translating into a lack of experience within the field, with leaders suggesting it can be challenging to get new recruits to recognise the importance of practicing safe working at all times, especially with experienced staff no longer around to provide guidance. The high number of short-term contractor staff also feeds in here; it can be challenging to get them aligned with operator standards.
• Ageing assets: SLB data shows that productive fields and reservoirs around the world are maturing with more than two-thirds of wells expected to be over 10 years old by 2030. This challenge is all too familiar in the Gulf of Mexico which is one of the world’s oldest offshore oil producing regions. Older assets and equipment typically pose a greater incident risk due to factors such as deterioration, lack of familiarity, difficulty obtaining repair parts and losses of critical information. As one of the biggest sources of offshore incidents, ageing assets is a leading cause of HSE breaches and is therefore identified as a primary concern for industry leaders.

The above is an extra from Offshore Network’s Gulf of Mexico: Health, Safety & Environment Report 2024 which can be downloaded here.