How Risk Based Decision Making improves Energy Efficiency in Oil and Gas Industry - Implementing Environmental and Resource Management - page 169

15 How Risk Based Decision Making improves
Energy Efficiency in Oil and Gas Industry
Bibek Das 1 and Robert Atkinson 2
1 Bureau Veritas North America, Houston, Texas, USA
2 Department of Environmental Planning, Brandenburg University of Technology
(BTU), Cottbus, Germany
15.1 Introduction
Quantified Risk Assessment studies are carried out with the objective of reducing
the risk to personnel, assets and environment to As Low As Reasonably Practica-
ble (ALARP). With the increasing use of this principle in oil and gas safety stud-
ies to reduce the tolerable risks to ALARP level, Risk Based Decision Making
(RBDM) has witnessed improved energy efficiency as a bi-product. This paper
proposes a method to set energy efficiency as an objective of such analyses, rather
than just a bi-product, in Capex and Opex projects. The ALARP decision is based
on a Cost-Benefit analysis methodology, and the related benefits include not only
the obvious risk reduction potential and improvement in reliability and availabil-
ity, but also improvements in energy efficiency. Thus, setting energy efficiency as
a goal and combining it with the ALARP method will be beneficial for the operat-
ing companies.
This paper explains the methodology of Risk Based Decision Making (RBDM)
and ALARP principles. With an example case, the possibility of using this process
to form the very basis of decision making when comparing energy source effi-
ciency, is demonstrated. The paper also discusses how the benefits of risk man-
agement can be extended to efficient energy decisions in every stage of a project,
from conceptual front-end engineering design (FEED) through engineering pro-
curement and construction (EPC) up to and including operation and decommis-
sioning. The paper also explains why the Oil and Gas sector is chosen as an exam-
ple. Thus, the paper proposes a holistic approach using Risk Based Decision
Making to optimise safety, reliability, environmental impact mitigation and 'upti-
mize' energy efficiency over the entire lifecycle of a project.
Energy efficiency improvements in the Oil and Gas industry can be achieved in
a number of ways, two of which are directly relevant to this paper. The first of
these is the replacement of existing energy sources with a completely new, more
efficient and cleaner source. Hence, efficiency here can be considered to be an in-
herent property. The second is the improvement of reliability and operability of