From late 2014 to early 2016 the oil price collapsed by ~75%. This has had major impacts on both CAPEX and OPEX spend in the Oil & Gas sector resulting in the cancellation/ deferment of major capital projects and significant workforce reductions both in terms of ‘direct’ staff and 3rd party contractors. In view of this, a key challenge facing the sector is how best to deliver the desired business outcomes in a safe and sustainable manner.
Through ERM’s work with leading companies across the Oil & Gas sector (and others, including Mining and Chemicals) we have gained a sound understanding of what drives a company’s view on the ‘required’ level of HSE resources and HSE management process.
In this context, the aim of this paper is to explore:
- An ‘event driven’ approach that was prevalent across a number of companies.
- An example of a more systematic and riskbased approach that ERM uses with leading organisations to ensure fit-for-purpose resources/processes that are commensurate with the prevailing risk profile.