Sustainability, Safety and Reputation during economic challenging times
The decline in oil prices has resulted in some companies decreasing investments, and some even cutting back expenditures. Safety, the environment, and the industry reputation are of concern as companies cut costs during declines. Accidents continue occurring, indicating that the safety and environmental risks – and challenges of the oil and gas life cycle will continue regardless of oil prices.
The industry has already gone through significant oil and gas price swings and critical global events several times, and we should learn from past lessons. HSE risks and challenges increase with low oil prices. In fact, the situation now is significantly augmented due to the job losses and wider economic impacts of the COVID-19 induced economic volatility.
Lower prices and economic volatility often translate into job and maintenance cuts; some workers get distracted with the prospect of potentially losing their jobs, and others may start taking more risks to preserve their positions. The situation may be increased by conflicting communications coming from the top to maintain production while cutting costs.
The industry has already gone through significant oil and gas price swings and critical scenarios several times, and we should learn from past lessons.
Looking forward, global energy demand will continue to grow but at a slower pace due to greater efficiency, slower population and economic growth, and new and improved technologies. And although more energy will be needed in a lower carbon way, the oil and gas industry will continue to play an important role in the energy portfolio and hydrocarbons will still account for just about half of the total energy mix in 2050.
The current slowdown in investment will translate into falling production, requiring the drilling of more wells to keep up with upcoming future demand.
The industry's most important and valuable resource is its people. The message from management to the workers on the ground must be one of paying much more attention than ever to safety, environmental protection, and responsible operations while running more efficient operations and maintaining focus on operational integrity. The same message must be passed on to drilling and service companies, especially when contracts and prices are renegotiated.
Bottom line, it is imperative to maintain focus on safety, the environment, and responsible operations regardless of the present price of oil. The message and actions coming from the top leadership at all times must be loud and clear: moving forward with HSE as the number one priority continuing operations in a very efficient and responsible way.
HSE International LLC at SPE Symposium on Health, Safety, Environment, and Sustainability, 30 – 31 March, Mexico City, Mexico.
HSE International LLC’s Managing Director Fernando Rodriguez, a member of the Conference Committee, will moderate along with Mary Beth Snodgrass (Local Contenect LLC), the following Panel: Operationalizing Sustainable Development.
Speakers at this panel will include: Juan Carlos Belausteguigoitia with the Mexico Institute of Technology, Nayelli Garcia with Schlumberger, Mark Thorpe with Torex Gold, and Karla Torrez with Shell.
Often times O&G industry discussions on sustainable development topics are focused on strategy, policy, guidelines and other key high-level statements, while often the biggest challenge for operators and service companies is implementing good international industry practices (GIIP) to achieve sustainable development. This panel will focus on operationalizing solutions to social, economic, environmental and security risks and impacts.
Panelists will share stories of their successes as well as on-going challenges and how they are being addressed. With local and international experience structuring and implementing sustainable development practices, the panelists will discuss operationalizing sustainable development in Mexico at a pivotal time: at the beginning of the country's “Apertura” and during a low oil price environment.
The SPE Mexico Health, Safety, Environment, and Sustainability Symposium: Collaboration for Future Growth, will get together operators, regulators, and new entrants to Mexico as they collaborate on how to identify and establish the best practices and protocols each has to offer to achieve sustainable, secure, and safe operations in an expanding market.
Interested in meeting with Fernando to discuss a particular topic during the symposium? Please send him a note ahead of the event to: fernando.rodriguez@hseinternational.com
For more information visit http://www.spe.org/events/lahs/2016/pages/schedule/tech_program/thursday_techprogram.php