Safety Lessons from Tanker Operations

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Safety Lessons from Tanker Operations Finding Petroleum Conference Improving Offshore Safety -- Beyond Macondo 22nd May 2012 -- London Martin L Shaw Managing Director Marine Operations and Assurance Management Solutions Ltd

Outline • • • • •

The 70’s and 80’s decades of shame Industry progress a matter of pride Where is the industry now ? Where is the industry going? What are the choices? – Cost versus Risk – Resilience-people or process

• Lessons from tanker quality ©Marine Operations and Assurance Management Solutions Ltd 2012

THE INDUSTRY’S REPUTATION - 1970’S/80’S • Oil Shock – Recession – Overbuilding – Low rates

• Industry Shift – Cost cutting – Change in structure – Block obsolescence

• Compliance – Flags of Convenience – Class Societies – Charterers 3 ©Marine Operations and Assurance Management Solutions Ltd 2012

Largest Tanker Spills (ITOPF Data)

Note Exxon Valdez is Number 35

Marine Operations and Assurance Management Solutions Ltd 2012

Quality improvement since the 1980’s Intertanko Statistics No. of incidents

‘

’000 tons pollution

1050

600 Information based on reports from Lloyd's Maritime Information Unit and The International Tanker Owners Pollution Federation

Fire/Expl Miscellaneous Hull & Machinery

840

480

Grounded Coll/Contact Oil pollution

630

360

420

240

210

120

© Marine Operations and Assurance Management Solutions Ltd 2012

2011

2009

2007

2005

2003

2001

1999

1997

1995

1993

1991

1989

1987

1985

1983

1981

0 1979

0

What drove improvement? • Single Goal – Oil Pollution

• Motivation – Commercial incentive

• Global Standards • Consensus – Charterers, Legislators, Owners

• Strong compliance – Vetting – Port State ©Marine Operations and Assurance Management Solutions Ltd 2012

Why the recent increase? Macro

Micro

• Multiple (conflicting?) goals – GHG/Air quality/Ballast Water – Piracy – 9/11 Security

• Motivation – Freight rates – Cost pressures – Finance Costs

• More regional rules • Consensus weakening (GHG)

• More ships more accidents • Better reporting due to TMSA • New ships – Teething problems – Understanding of new technology)

• Experience gap from lost recruiting in the 80’s and 90’s • Complexity

© Marine Operations and Assurance Management Solutions Ltd 2012

Procedures Requirements and Communications

Issues 1 .....Complexity

Compliance

Risk

Simplicity

Clarity

Confusion

Distortion

Box Ticking Culture Time ©Marine Operations and Assurance Management Solutions Ltd 2012

Capacity to Absorb

Anarchy

Corner Cutting

Issues2 –Markets and costs

© Marine Operations and Assurance Management Solutions Ltd 2012

Choices-Squeezing Operations

PROTECTION

PERFORMANCE

After James Reason Managing the Risks of Organisational Accidents

© Marine Operations and Assurance Management Solutions Ltd 2012

Choices The Banks Shareholders Creditors

Shipping Company Legislators and Customers Source Scylla and Charybdis by ~EarthDefect on deviantART

To succeed owners will need to adapt and be resilient ©Marine Operations and Assurance Management Solutions Ltd 2012

Choices -- Resilience The ability of an organisation to succeed in changing circumstances --not just survive! • • • • •

Clarity and Agility Learns Anticipates Adapts Monitors

People who can think not just follow rules! © Marine Operations and Assurance Management Solutions Ltd 2012

Coping with different Operating Modes Resilient

Normal

Abnormal

Brittle

Emergency

Resilient organisation will adapt from normal operation to abnormal operation and recover. In emergency resilient operation will be able to adapt further to avoid catastrophe

Normal

Abnormal

Emergency

Brittle organisation will need all its resources to maintain normal operation leaving limited capacity to deal with the abnormal. Rule based mentality will be unable to cope with novel emergencies and will fail.

© Marine Operations and Assurance Management Solutions Ltd 2012

Resilience –Its about People Downward Resilience

Downward Resilience

Owner

Upward Resilience •The Human Contribution and Motivation oNot human error !! •Choosing the right people oSelection oRetention •Learning and Training oTechnical Skills oNon technical skills ( the human element) oDecision making oOn board training/learning

Operations Management

Regulators Requirements

Upward Resilience

Customer Requirements

•What the Owner Wants oStrategy oValues oGoals and Goal Conflict •How the owner wants it to work oCulture oMotivation •How the owner is seen oLeadership oCommunication

Resilient Operation ©Marine Operations and Assurance Management Solutions Ltd 2012

Lessons from tanker quality • Global tanker trading – Charterer Influence – Vetting

• Regional, coastal and inland trades less controlled • Offshore marine operations – Regional – Political issues – Local Aspirations © Marine Operations and Assurance Management Solutions Ltd 2012

Conclusion • Tanker industry quality has radically improved quality since 1970’s/1980’s • Much of improvement has been plant/process based • Context is changing in tanker industry – Complexity could undermine progress – Low market

• Choices – Cost versus risk – Resilience depends on people

• Mechanisms are transferrable to other sectors but need to fit context of industry ©Marine Operations and Assurance Management Solutions Ltd 2012