The oil and gas industry is growing rapidly, and the requirement for more reliable and advanced oil and gas safety management solutions also increased. A better oil and gas safety management system should be deployed in oil and gas sites to control incidents because accidents on oil and gas sites are often fatal and cause massive losses to the organization, employees, and the environment. Although industries already have oil and gas safety measures and practices in place, it’s high time to upgrade to a better risk management system in the oil and gas industry.

In this industry, challenges revolve around assets management, the adoption of technology, and transparent workflow. In this case, our cloud-based oil and gas safety incident management software “Preverly” can help organizations to make their worksite more safe and secure. The software ensures safety at all levels as per workplace requirements. Preverly allows oil and gas organizations to improve their security, work quality, and incident management capability.

Preverly makes the workplace safe and secure, where workers can work without fear of being injured. Our safety observations management software for oil and gas industry works according to the regulations set by government bodies. So that company will be free from paying hefty penalties and violations.

Workplace Safety Risks in the Oil and Gas Industry

The oil and gas industry contains a wide range of risks that spread across all areas of business.

Economic risks: There can be financial risks such as oil price collapse, loss of demand, or high operating costs. One of the significant risks this industry has is an economic risk. These companies suffer most when the oil prices go down or a surge in transportation or operational costs occurs.

Environmental risks: Oil and Gas industries are strictly monitored and imposed hefty fines if the nearby localities face pollution issues. Even the larger enterprises face such risks as an oil spill or a gas leakage would be more dangerous. These mishaps also damage the company’s reputation, and sometimes they lead to license cancellations.

Regulations to Maintain Safety in the Oil and Gas Industry

With such huge risks within the oil and gas industry, it’s understandable why there are numerous regulations and standards. It is not only in the best interest of an organization to follow rules and regulations to avoid fines but also to protect itself and its employees from harm (financial, health, or otherwise).

The oil and gas industry has more regulations and laws than any other sector, and it is understandable looking at the level of risks this industry holds. Apart from huge penalties, it is more important to create a safer environment for workers. Transportation is one of those sensitive areas where serious accidents may happen as they carry highly inflammable oils.

When we look at the oil and gas industry, there are a few categories of risks:

• Controllable risks
• Uncontrollable risks
• Hard risks
• Soft risks

Appropriate categorization and following oil and gas safety checks designed by the safety incident software for oil and gas can bring down the accidents count. Each organization has jurisdiction over various components of oil and gas business practices, like offshore drilling and transporting oil.

They also have a lot of regulations. A good risk management platform, such as with Preverly, will allow you to load these regulations into a platform that guides you through the assessment. You will then have a record of compliance or non-compliance and be ready to track and keep a record of improvements and corrections.

An example of a regulation you had got to keep a record of is OSHA, which ensures workers’ safe working conditions. Standards are up to the business’s discretion but often provide precious insight into a particular industry’s risks or business practice.

Penalties

Within the oil and gas industry, fines do not seem to be just a scare tactic or a point, but a learning opportunity. Only as industry best practices and standards provide insight on how to steel oneself against risks you will encounter; you will see what other companies did not strengthen themselves against. Below is a recent example of the financial risk faced by companies for safety violations.

In 2018, Noble Energy was fined $1.6 million for failing to take care of and pressure test several hut-in wells. As Colorado’s second-largest driller by volume of oil, this shows that even large organizations must specialize in risk management. The regulation is in situ because pressure testing helps verify the well’s integrity and check for leaks, which helps protect both workers and, therefore, the environment. The fine’s size came from a mixture of the number of wells and the duration of violations. In some instances, quite a year, maintenance was overdue, and Noble incurred a penalty of up to $5,000 for every day.

Execution of Oil and Gas Safety Management Software

To help prevent many risks or maintain safety in the oil and gas industry or mitigate the impact of several more uncontrollable circumstances, risk management and planning takes an enormous role within a corporation. We are dedicating the time and resources required to deal with all requirements and best oil and gas safety practices in investing within the corporate future success.

A crucial aspect of designing and deciding within today’s oil and gas industry is accounting for varying risk levels. For instance, a pipeline may be a lower risk and lower return compared to a drill rig. The more resources you have devoted to lessening the danger, the more the potential return is higher.

Conclusion

Having a strategy on board will help you allocate resources and prioritize mitigation. Preverly provides the best in industrial oil and gas safety tracking software that enable oil and gas companies to reduce risk, security, and compliance management goals. Our platforms are used worldwide to ensure workplace safety regulatory compliance is met, and policies are shaped and implemented.

If you would like to know more about Preverly, please reach us at mbrown@preverly.com.