In this Tip of the Month, we reflect back to December 2008, and get a reminder from the United States Chemical Safety Board (CSB) to remain focused on process safety and accident prevention during this time of lower oil prices.

During the economic downturn of 2008, oil prices dropped significantly. The latest drop in crude oil prices is similar. At that time, the CSB produced a video message asking companies to stay focused on process safety. That message is very relevant today.

Process Safety and Low Oil Prices

In the past, market conditions have occurred where oil prices have been low, such as we are experiencing today. Corporate cost cutting during these low oil price events have contributed to process safety incidents years later. In 2008, the United States Chemical Safety Board (CSB) Chairman John Bresland provided a reminder to oil companies that it is important to stay focused on process safety, even when prices are low. This was accomplished through a press release and a video safety message that is appropriate for this time [1].

Low oil prices, combined with striking workers at US refineries increase the challenges faced by managers to insure that process safety is a core value of the organization.

Containing overhead and operating costs during these market conditions may lead some to take shortcuts and make hasty decisions without considering all the process safety implications of these decisions. The attached press release and video safety message is as appropriate today as it was in 2008. This video message would be an excellent safety moment topic and hopefully will allow us to remain focused on process safety.

Dec 22, 2008

In First Video Safety Message, CSB Chairman John Bresland Calls for Industry to Remain Focused on Process Safety, Accident Prevention During Recession

Washington, DC, December 22, 2008 – In his first video safety message, CSB Chairman John Bresland today said that chemical companies and refineries need to continue to invest in process safety and preventive maintenance, even as the economic downturn cuts into sales and profits.

The four-minute video message was released on YouTube.com (http://www.youtube.com/safetymessages) and the text was posted on Blogger.com (http://safetymessages.blogspot.com).

“My safety message for oil and chemical companies is clear: even during economic downturns, spending for needed process safety measures must be maintained,” Chairman Bresland stated in the message. He noted that the CSB investigation of the 2005 Texas City refinery disaster linked the accident to corporate spending decisions in the 1990s, when low oil prices triggered cutbacks in maintenance, training, and operator positions at the plant.

“Unfortunately, around the country, refinery accidents continue to be a concern,” Chairman Bresland said, pointing to three major accidents that occurred at refineries in Texas this year, including a fire at a refinery in Tyler last month that fatally burned two workers and forced the refinery to shut down for months. “Today, as gasoline prices remain low, companies should weigh each decision to make sure that the safety of plant workers, contractors, and communities is protected.”

Safety Messages are a new communication tool for the agency, consisting of short videos from the Chairman or the other board members. In the coming weeks and months, new messages will be released on a variety of current issues in chemical process safety.

“I encourage all of our stakeholders to join the discussion on YouTube.com and Blogger.com and share their thoughts about the subject of these messages,” Chairman Bresland said. Comments and ideas for future Safety Messages can also be emailed to safetymessages@csb.gov.

The CSB is an independent federal agency charged with investigating industrial chemical accidents. The agency’s board members are appointed by the president and confirmed by the Senate. CSB investigations look into all aspects of chemical accidents, including physical causes such as equipment failure as well as inadequacies in regulations, industry standards, and safety management systems.

The Board does not issue citations or fines but does make safety recommendations to plants, industry organizations, labor groups, and regulatory agencies such as OSHA and EPA. Visit our website, www.csb.gov.

For more information, contact Daniel Horowitz at (202) 261-7613 or Hillary Cohen at (202) 261-3601.

To learn more about process safety, we suggest attending our PetroSkills HSE course, HS 45- Risk Based Process Safety Management or PS-2, Fundamentals of Process Safety To enhance process safety engineering skills we suggest any of the JMC foundation courses or our, PS 4 – Process Safety Engineering course.

PetroSkills offers consulting expertise on this subject and many others. For more information about these services, visit our website at http://petroskills.com/consulting, or email us at consulting@PetroSkills.com.

By: Clyde Young

Reference:

  1. United States Chemical Safety Board, Press Release, December 22, 2008.
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