Safety culture in an oil and gas economy – What’s at stake?
David A. Olton CSP, CPEA
David A. Olton CSP, CPEA

By David A. Olton

Guyana is on the brink of an economic explosion that will substantially increase its revenue earning capacity. It is projected that by 2020, oil will begin to flow from the deep recesses of the offshores.  This new economic stimulus requires that as a country we be prepared to reap the projected revenues as well as foster a culture of safety informed by national and international safety standards. These standards will serve in the prevention of workplace injuries, loss of life, damage to equipment and supplies, as well as prevent or minimize negative environmental impacts.

Whereas the oil and gas industry is not unknown for incidents, every industrial environment has some degree of potential risks and existing hazards as a natural part of the process. These safety risks are experienced in offshore drilling operations and some onshore industrial activities that involve the use of hazardous materials, large heavy-duty equipment and extreme pressures and temperatures. The risks faced by the oil and gas industry have forced an environment of enhanced safety measures and awareness at all levels. The need for this being a matter of importance that is not limited to the oil and gas industry, but also by the Guyana government, donor agencies such as the World Bank, IDB and other international organizations including Ocean Conservancy and Greenpeace.

Guyana is therefore left with no choice but to develop its capacity to manage not only its impending oil revenue, but the environmental and occupational safety aspects surrounding an industrial driven environment. As such, strengthening our national regulatory framework gives the assurance  that established and upcoming companies, and investors will comply with national and international performance standards. This can only be to our betterment. The sooner we start, the more likely we are to successfully exploit our natural resources in an environment of safety.

Locally, this brings a tremendous opportunity to create growth in business, and at the same time advance a culture of safety for the benefit of Guyanese.  In such a culture, companies view safety as a core value and engage their employees in the safety process. Astute companies have already recognized that a positive safety culture drives gains by reducing incidents, near misses and hazard conditions. These safety gains correlate with increased employee morale, and higher productivity.

In fact, Paul O’Neill, a former US Secretary Treasurer and former chairman of a  large multinational organization  employing over 140,000 employees in 36 countries demonstrated that it was possible to build a better more productive company by making safety a number one priority. At the time of his appointment, the company had a rapidly declining stock value, and high incidence of injuries. However, to the surprise of senior leadership, and investors, O’ Neill successfully improved the economic fortunes of the company but not before building and supporting a positive safety culture.

There are numerous success stories similar to that of Paul O’Neill’s with companies recognizing the importance of building a culture of “Safety First” and where such interventions have contributed to greater workplace harmony and increased productivity.  Further, as a function of promoting a positive safety culture, the concept of “ownership of safety” is increasingly recognized as an important ingredient for its success. A culture of safety requires that all personnel be  involved and take   personal responsibility. From the CEO to the most junior or newest employee, each must take ownership to the extent that safety becomes a natural way of doing business.

Companies with a culture of safety, see safety as a crucial part of a core corporate value system that is not simply built as a one-off measure. Safety is therefore viewed as a core value and is built into a company culture through  ongoing commitment and a continual improvement process. These are often documented as policy positions for company direction.

Efficient and effective safety programmes supporting safety policies must be subjected to constant review and updating based on experiences and scientifically proven methods, measures and performance trends of the company.  In the oil and gas industry, Exxon Mobil promotes an “Operations Integrity philosophy”, that outlines a commitment to protect people and the environment. One can therefore expect that in maintaining this philosophy, Exxon’s contractors and suppliers will likewise be required to embrace and operate in a culture of safety.

It is understandable  and not unusual  for some companies to see the establishment of a positive safety culture to be challenging. Some local companies are even  likely to experience a bit of anxiety trying to improve its safety performance. In particular, smaller companies looking to implement a safety program will likely need to get pass a steep learning curve. How can they build a culture of safety to achieve the required level of safety performance when there is no quick fix?  The only recourse to achieving this is through commitment, effort, and some level of resources.

In addition to the ‘all are involved’ concept from top management commitment to employee engagement there is need for a daily embrace of safety practices. These practices include, analyzing job tasks and operational hazards; providing safety training to build knowledge and awareness; incorporating accountability, as well as performing management reviews. Combined, these form the pillars for continual improvement for maintenance  of a positive safety culture.

Whereas some companies have already bought into a positive safety culture, some are yet to progress in this direction.   Safety culture requires  robust standards and oversight to help advance a positive national shift. This will ultimately create an accompanying climate of safety consciousness. In such an environment, the safety reputation of companies in the society stands to become an even more critical aspect of their social responsibility.  This  would undoubtedly be a win for Guyana and a welcomed progression for the long-term value it brings.

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