ENVIRONMENTAL RISK MANAGEMENT: A PROPOSED SCHEME

Abstract

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; and

the 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.