How Risk Based Decision Making improves Energy Efficiency in Oil and Gas Industry - Implementing Environmental and Resource Management - page 178

Lessons Learned - Case Study 1
This project used RBDM as a rational decision-making tool to replace an existing
energy source with a new, more efficient and cleaner source. By comparing the
two situations, i.e. the status-quo and the proposed project, in terms of risk, the
company was able to directly determine not only the relative incident potential,
but also the comparative financial benefits. The outcome of this comparative study
would, in this case perhaps have been made clearer by the inclusion of energy ef-
ficiency as a decision criterion. Regardless, the following conclusions can be
drawn in favor of RBDM process based on the example above (due to confidenti-
ality agreements some conclusions have been drawn based on aspects not men-
tioned in the case-study):
1. A risk-based decision making process provides a rational argument for prioriti-
sation of areas of concern.
2. The decision maker has more economically viable options during the concep-
tual stage.
3. The risk-based decision making paves the way for more efficient and cleaner
energy and provides sustainable development by identifying those risks to fu-
ture generations that present generations would find unacceptable.
15.9 Case Study 2: OPEX Project
The second way of improving energy efficiency is by improving the reliability and
operability of existing systems or of conceptual system designs. The example
given here is that of an Opex project, which had the goal of improving an existing
system. The operator of a petrochemical plant, in operation for more than four
decades, with ageing equipment and structures, wished to operate for five more
turnaround cycles. The high pressure systems dealing with toxic and flammable
inventory as well as frequent shutdowns added to the complexity of the problem.
Refurbishments had been undertaken from time to time, however reliability of in-
strumented protective functions along with failures involving rotating machinery
remained concerns. A rational approach to problem solving was much needed to
help decide when and on what to invest.
The RBDM process proved to be a useful tool in achieving the objectives. The
process started with the identification of Key Performance Indicators (KPIs). The
study involved many analyses of the 'as is' condition of the process, equipment,
instruments and structures. In the end a list of actions were drafted that was priori-
tised based on the expected improvements in the KPIs and the criticality of the as-
sets. The timeline and cost of implementation of actions were carried out by the
operator.
KPI's in this case include such aspects levels of reliability and operability;
health and safety; impacts to the environment; as well as financial considerations
such as the financial investment, manpower and shut-down hours required for im-
plementation. Once again this can be seen as a comparative study between a num-