Transcript Slide 1

Allegro
Energy Consulting
The Oil Pipeline Industry Had an Idea . . .
Learning from PPTS 1999-2007
Understanding Hazards
Consequences
Cheryl J. Trench
President
Improving Performance
Allegro Energy Consulting
0 Spills
A Presentation to
0 Deaths
Pipeline Safety – What More Needs To Be Done?
A conference sponsored by The Pipeline Safety Trust
0 Injuries
Error-Free Operations
Allegro Energy Consulting
P.O. Box 230592  New York, NY 10023
Phone: (212) 787-6923  Fax: (212) 721-9028
[email protected]
November 20, 2008
New Orleans, LA
© Cheryl J. Trench, 2008
Allegro
Energy Consulting
What is the
Pipeline Performance Tracking System?
 “PPTS”: voluntary; open to all liquids pipeline operators
 No membership req’d, no fee imposed
 Industry-run and maintained
 Collecting info since 1999
 Records spills of 5 gallons or more on land, all spills to
water (compare old OPS @ 50 barrels)
 In 2007, PPTS participants operated about 85% of OPS
miles and total barrel-miles
1. Measure 2. Learn 3. Manage 4. Improve
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Energy Consulting
Data Mining Highlights
 Team Composed of Diverse Subject Matter Experts
 Operator Advisories (www.api.org/ppts)
 Causes/locations with a large share
 Consequences
 New perspective via PPTS
 Guidelines for reporting
 FAQs for consistency
 Reports and Fact Sheets
 Also, Performance Excellence Team
The data doesn’t go in and not come out!
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Energy Consulting
PPTS Participants Use PPTS
 To measure operator/Industry performance
 To allocate $
Maintenance
IMP
R&D
 To direct regulatory/advocacy effort
 To find new approaches to keeping people and
communities safe
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Energy Consulting
Key Elements in PPTS Success
 Commitment
 Pipeline Leadership
 API/AOPL
 Care and Feeding (API’s Commitment)
 QC: Transparency, credibility
 Program Software/Mechanics
 Data Mining Team
 Learning
 Data Mining Team
 Lectures
 Website
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Energy Consulting
Dramatic Improvement:
Liquids Pipeline Industry Onshore Pipe Spill Record
Number of Spills per 1,000 Miles
800
2.5
2.0
1.5
Barrels Released per 1,000 Miles
2.0
629
600
-52%
-60%
400
1.0
0.5
0.8
301
200
0
0.0
'01 '02 '03 '04 '05 '06 '07
'01 '02 '03 '04 '05 '06 '07
3-Year Averages Ending in Year Shown
Source: Pipeline Performance Tracking System, a voluntary spill
reporting system involving 85% of the U.S. liquids pipeline mileage.
Percentage decline from 1999-2001 average to 2005-2007 average.
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Energy Consulting
Releases along the right-of-way
have fallen by almost 60%
350
Number of Releases
300
Facilities Piping
250
-30%
200
Onshore Pipe
150
100
-59%
All Other Locations
50
-19%
0
'01
'02
'03
'04
'05
'06
'07
3-Year Averages Ending in Year Shown
All other locations: tanks, caverns, offshore pipe
Source: Pipeline Performance Tracking System, 1999-2007.
'99-'01
v '05'07
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Energy Consulting
System location and risk
Facilities piping: more of them, but small
Onshore pipe: fewer of them, but larger
Incidents by System Locations, 1999-2007
Total (annual average, 1999-2007)
Share of Total
Facilities piping
Onshore pipeline
Aboveground Storage Tank
Offshore pipeline
Cavern
Number
476
Barrels
90,983
53%
37%
8%
2%
0%
14%
65%
18%
2%
0%
Includes releases due to hurricanes Ivan, Katrina and Rita.
Source: Pipeline Performance Tracking System
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Where Are People Getting Hurt or Killed?
Deaths and Injuries by System Part
System Part
Incidents
(#, ’99-‘07)
Empl.
1
1
0
0
1
Onshore Pipeline
8
2
2
12
16
Grand Total
Aboveground Storage
Tank
9
3
2
12
17
1
1
0
0
1
Cavern/belowground
1
1
0
0
1
Facilities Piping
3
2
6
0
8
Onshore Pipeline
16
2
1
30
33
Grand Total
21
6
7
30
43
Fatalities Facilities Piping
Injuries
Contr. Other Total
(# People)
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Cause
Fatalities Third Party Damage
Operator Error
Other
Total
Injuries Third Party Damage
Operator Error (incl.
excavation)
Pipe mat’l/seam
Corrosion
Equipment Malfunction
“Other failure” in a Tank
Other Cause
Total
Assessing Consequences:
Deaths and Injuries by Cause
Incidents
(#, ’99-‘07)
4
2
3
9
8
5
Empl.
2
2
1
1
2
21
1
0
0
1
0
6
0
0
3
3
0
4
Contr. Other Total
(# People)
0
10
10
2
0
2
0
2
5
2
12
17
0
17
17
6
0
10
0
0
0
0
1
7
2
3
1
0
7
30
3
3
1
1
8
43
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Energy Consulting
Number of Releases
100
Reduction in releases along the right-of-way
reflects diverse strategies
132
3-year average ending:
2001
2007
80
-71%
-64%
-53%
-20%
-60%
-49%
18
16
233%
60
41
39
40
34
26
16
15
20
21
8
7
1
0
ro
r
o
C
o
si
n
Th
ird
ty
r
Pa
Eq
pm
i
u
t
en
Pi
pe
M
l/
at
S
m
ea
e
th
O
r
p
O
o
at
r
e
r
r
ro
r
E
at
N
al
r
u
Source: Pipeline Performance Tracking System, a voluntary spill
reporting system involving 85% of the U.S. liquids pipeline mileage
F
es
c
or
3
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Energy Consulting
Focus on Corrosion
 Largest cause of ROW spills (46%)
 Reduced by 71% between 1999 and 2007
 56% are less than 5 barrels
 More important in crude oil systems than in
refined product systems
 Hundreds of millions $ of investment have
reduced
 Inspection and repair in high consequence areas
 Now at end of first 5-year cycle
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RIGHT-OF-WAY
Energy Consulting
Focus on Third Party Damage
 "Third party" is someone other than the operator
(first party) or its contractor (second party)
 Excavation or other mechanical damage
 Not the greatest number, but the highest
consequence
 Almost 90% occur along ROW
 Deaths, injuries
10 of 17 fatalities on ROW due to third party damage
17 of 43 injuries on ROW due to third party damage
 Large spills
15% of ROW number, but 38% of ROW volume
Source: PPTS, 1999-2007
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RIGHT-OF-WAY
Energy Consulting
Who are these "third parties"?
 Landowners (farmers, homeowners, tenants)
 Road construction crews
 Resid./comm'l development, etc.
 "One-call Partners" (pipelines and other
underground utilities that pay for "call before you
dig" systems)
 Can't forget first and second parties, though – the
pipeline operator and its contractors
1st & 2nd
Party
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3rd
Party
Energy Consulting
Who does the damage?
Not just excavators
Oper./Contractor
Excav., 17%
Operator
Excav.*
Landowner/
Tenant, 29%
Farming
Oth. pipeline
operator
Homeowner
One-Call Partners,
22%
Underground
operator
Road
Work, 10%
All Other*, 22%
Onshore pipeline spills where: release occurred at the time of damage,
and involving 5 barrels or more, or death, injury, fire or explosion.
Source: Pipeline Performance Tracking System, 1999-2007
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Energy Consulting
70% Decline in Third Party
Hits Causing Immediate Failure
35
Number of Incidents
30 7%
25
17%
20
15
10
26% Operator/Contractor
70%
20% 3rd Pty: Prior Damage
5
0
2001
54% 3rd Pty: At the Time
2002
2003
2004
2005
2006
3-yr average ending in year shown
2007
* Includes onshore pipeline incidents >=5 barrels or death, injury, fire or explosion
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Example of Declines 1999-2007
Incidents Caused by Landowner/Tenant Activity, 1999-2007
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Number of Incidents
6.7
1.7
2.0
0.7
'01 '02 '03 '04 '05 '06 '07
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Thousands of Barrels Released
6.3
6.3
0.6
0.2
'01 '02 '03 '04 '05 '06 '07
3-Yr. Averages ending in year shown
Farming
Homeowners
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Energy Consulting
Recent Learnings:
More detailed choices aid reporting
 Operator Error: more Other Human Error
 Survey: more root cause analysis? Better understanding?
 Yes, can no longer use old categories
 Improve categories
 Facilities incidents require details: “granularity”
 Different pieces of equipment, different failure mechanisms
 Diverse industry groups to advise
 More surveys
 Improved categories, plus sub-categories
 PRCI report
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Energy Consulting
Data Mining Team






Bukky Adefemi (API)
Hazem Arafa (API)
Molly Atkins (Longhorn)
Adrianne Cook (AOPL)
Tom Kelly (Colonial)
Frank Gonzales – Lead
(Buckeye)
 Dave Knoelke (BP)






Peter Lidiak (API)
Matt Roberts (Chevron)
Guy Peltier (ExxonMobil)
Debbie Price (Shell)
Terry Riesen (Marathon)
Cheryl Trench (Allegro
Energy Consulting)
 Todd Tullio (ConocoPhillips)