Chevron Risk Managemnt

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Risk Management – Global Approach, Local Solutions

Rodney Azevedo

Chevron Oronite Company
Maua, Sao Paulo

Neuza Ferreira
Chevron Oronite Company
Maua, Sao Paulo

Anne O’Neal
Chevron Oronite Company
San Ramon, California


Systematically and consistently identifying risks is the critical first step in managing Process Safety. In designing a new processing facility, or managing risk in an existing facility, ranking of the relative risks allows companies to focus their resources on the changes which could have the biggest impact on reducing their overall risk. Chevron’s approach evaluates risks to safety, the environment and health. Relative prioritization of these risks within a plant, within a business segment or across the enterprise has provided a sound basis for Process Safety improvement. This paper will present an overview of this global approach, a comparison to Brazilian regulatory requirements and some examples of risk reduction in the specialty chemicals business. A more comprehensive description of the Chevron HES Risk Management approach was presented at the 2008 SPE International Conference on Health, Safety, and Environment in Oil and Gas Exploration and Production held in Nice, France, 15–17 April 2008. SPE 111769 Meeting the Challenge of Technology Advancement: Innovative Strategies for Health, Environment and Safety Risk Management J.M. Bruney and D.W. Jones, Chevron Energy Technology Company


1.1 Managing Risks in Our Daily Lives
Each of us manages risk in every aspect of our daily lives. As we move from place to place as pedestrians, drivers or passengers we face the deadly hazard of a traffic accident. In many countries, today’s roads are markedly safer than the roads of yesteryear. As a society we manage this risk in fundamentally two ways: reduce the likelihood and reduce the potential consequences. We minimize the likelihood through a mix of engineering controls (speed limits, traffic signs, controlled intersections, divided roads, headlights and road lighting, mirrors, sidewalks and crosswalks, anti-lock brakes, “black box” driving monitors on commercial vehicles, fences to keep animals off roads, all-weather tires, etc.) and administrative controls (tested and licensed drivers, adults holding the hands of children as they learn to safely cross streets, alert pedestrians, bright and reflective clothing for roadway workers, defensive driving skills, rested and alert drivers, alcohol/drug-free drivers, road safety laws, public safety officers, checking tire pressure). We reduce the potential consequences through things like air bags, seat belts, crumple zones and roll bars. Countries that have implemented a structured approach and put a public emphasis on Road Safety have greatly reduced the risk of road deaths around the world. They’ve taken a complex system of roadways, vehicles and people – identified the highest risks first and systematically added better and better controls. In the early 1960s, car buyers had to pay extra for seat belts in the back seat. Since that time seat belts have become standard. Many other safeguards, such as anti-lock brakes or air bags were also once considered optional. Today these safeguards are also often considered standard.

1.2 Managing Industrial Risks
Managing risk in the chemical process industry is, in principle, no different. In practice, however, it can be even more complicated. The chemical plants, oil production facilities, refineries, power plants and food processing plants operating today have been built over a number of years, innovating and adapting to the changing needs of our customers and along the way adopting new and innovative engineering and administrative controls to continually reduce the risk these operations pose to...
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