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.

Mexico Oil & Gas auctions for 2018: Offshore and Onshore

The Oil & Gas auctions for 2018 will include deep-water, shallow-water, and onshore blocks (shale plays). 

Due within the first year after the Effective Date: Environmental Baseline Assessment (LBA), Environmental Impact Assessment (MIA), Social Impact Assessment (EVIS), HSE Management System (SASISOPA), Water Resource Permits, Waste Management Permits, HSE Notifications, ... Exploration Drilling Authorization

HSES Timeline

HSE International has performed dozens of offshore and onshore assignments in Mexico providing HSES support services to the O&G industry. Some examples include:

• Risk assessment and regulatory advice
• Permitting planning and compliance
• HSE Management System
• Sustainability-seeking E&S MS with IFC PS and WBG EHS Guidelines
• Locality strategy for entry in new area / new projects 
• HSES Due diligence
• Social and environmental baseline and impact assessment
• In-country support to offshore and on-shore oil and gas activities
• Training and capacity building

HSE International's consultants deliver strategy, clear advice and support with implementation in a way that is culturally and locally savvy.

For more information contact us at: solutions@hseinternational.com, (+1) 281.971.5909 www.hseinternational.com

Mexico: four more Oil & Gas auctions for 2018

HSE International, LLC

Mexico could launch up to four more oil and gas auctions before the end of 2018. The tender could include shallow-water fields as well as gas-rich shale areas. The government had previously mentioned three more tenders were planned, but a fourth could be a mix of fields including some deep-water areas.

Round 2.3 - Depp Water

This bid round includes 30 deep-water blocks for exploration in the Perdido Area, Salinas Basin, Mexican Mountain Chains (Cordilleras Mexicanas) and the Yucatan Platform, collectively an area three times the area for deep-water Round 1.4. Most of the blocks have an area of 2,000 square kilometers. The blocks in this Round will be awarded based on a license contract and include wet gas and dry gas, which will help reduce imports. The presentation and opening of proposals is scheduled for January 31, 2018.

Round 3.1 - Shallow Water

35 shallow water contractual areas under Production Shared Contracts integrate round 3.1. These contractual areas are divided into three sectors: Burgos, Tampico-Misantla-Veracruz and Cuencas del Suereste basins. These blocks have a range of prospective resources ranging from light to heavy crudes, as well wet and dry gas blocks. The auction is scheduled for March 27, 2018.

HSE International has performed dozens of offshore and onshore assignments in Mexico providing H&S, Environmental and Social (HSES) support services to the Oil and Gas industry. Some examples include:

• Risk assessment and regulatory advice
• Permitting planning and compliance (ASEA, SENER, CNH, other agencies)
• Social and environmental baseline and impact assessment
• Strategic social and environmental performance project
• Sustainability-seeking management systems with IFC PS and WBG EHS Guidelines
• Locality strategy design and implementation for sustainable development
• Due diligence
• In-country support to offshore and on-shore oil and gas activities
• Training

HSE International supports clients with a contextualized, integrated and cost-effective approach, delivering innovative solutions and helping clients manage their risks in a way that is culturally and locally savvy.  Learn more about the services we offer and our extensive international experience spanning 35 countries, including Mexico.

solutions@hseinternational.com (+1) 281.971.5909 www.hseinternational.com