Ocean Energy Safety Institute Annual Report November 2015 October 2016

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1 Ocean Energy Safety Institute Annual Report November 2015 October October 2016

2 Outline Background 2016 Efforts Communications Director s Tasks Collaborative Research Path Forward 2

3 DoI Intent "The funding for this initiative was provided to establish an institute that would operate independently of the Department of the Interior while also supporting and enhancing Departmental programs through collaborative research and development and training to help identify operational improvements in the areas of offshore drilling and production safety and spill prevention. This is an effort to establish an institute that can work with academia, the oil and gas industry, regulators and nongovernmental organizations on the extremely important issues of increasing worker safety and environmental protection during the exploration, development and production of the nation s valuable offshore oil and natural gas resources." 3

4 OESI Leadership Co-PI Dr. Ramanan Krishnamoorti University of Houston Chief Energy Officer Principal Investigator Dr. M. Sam Mannan TAMU, Regents Professor Executive Director, Mary Kay O Connor Process Safety Center Co-PI Dr. Rashid Hasan Texas A&M University Larry Cress Fellow Director of Operations James Pettigrew, CAPT, USN(Ret) Co-PI Dr. Eric Van Oort University of Texas-Austin Petroleum Engineering Program Manager Paul Robinson 4

5 OESI Staff and Support Program Support: Valerie Green OESI Research Fellow: Dr. Camille Peres Human Factors Research Support: Dr. Yogesh Koirala Program Assistant: Amarette Renieri Research Support: Dr. Noor Quddus Program Assistant: Alanna Scheinerman 5

6 Advisory Committee 6

7 2016 Efforts 7

8 2016 Efforts Advisory Committee operating Forum topics and planning efforts from AC Quarterly meetings, hosted at member facilities Review of Suspension of Operations White Paper on hold Forums for Dialogue Keeping a Barrier Focus in Tough Economic Times; Stakeholder Efforts including Risk-Based Inspections Identifying, mitigating and managing Alarm overload for watch standers on the Bridge, Drill Floor and Control Room. Managing Drilling Margins and Well Control Risk, ensuring Risk and Innovation are not impacted. Maersk Drilling Research project Fatigue research, industry-desired and sponsored 8

9 2016 Efforts BSEE BAST Forum BSEE Director s Tasking Analysis of Equivalency of International Practices Research areas Forums High School Technology Challenge Collaborative Research Human Factors Engineering Zonal Isolation New Materials 9

10 2016 Efforts Delivered BSEE Training Computational Fluid Dynamics Real-Time Monitoring and SME interactions Drilling Margin and Fracture Gradient Review of BSEE Offshore Training Plan Ocean Energy Technology Portal (OETP) Presented at Federal Laboratory Consortium for Technology Transfer 2016 adds: Sandia, DoE, DoC, EPA, NASA (JSC and Ames), NOAA, USGS, Idaho NL, Lawrence Berkeley NL, USDA, US Army Institute of Surgical Research, AFRL, Stem Synergy Therapeutics Inc, B of Reclamation, UNM, NSWC, USFS, NIST (Boulder), NNSA, KC National Security Campus 10

11 2016 Efforts OTC 2016 participation Tech Challenge champion presentation SPE Data Summit API Workgroups U.S. Chemical Safety Board Recommendation Riser Gas Unloading Scenarios Gulf Research Program Proposals Scenarios Resilience of Coastal Communities Gulf of Mexico Research Institute Proposals RFP 6 Letter of Intent for Riser Gas Unloading Scenarios 11

12 2016 Efforts Annual site visit from BSEE OESI Leadership Offsites Director Task and Special Event Calls Technology Challenge team calls TAP Presentation team calls RTM Training team calls OTP Review team meetings Bi-weekly Conference Calls BSEE, BOEM, PI, Co-PIs, OESI Director, PM, Staff 12

13 Communications 13

14 Communication Plan 14

15 Director s Tasks 15

16 Director Salerno Tasks Analysis of Equivalency of International Practices Research Material Hardness (Bolts, Subsea equipment) Zonal Isolation (Shallow liners and submudline casing hangers) Forums BSEE Science and Technology Challenge 16

17 Director s Task 1 Analysis of Equivalency of International Practices 17

18 Background In recent years, there has been a significant amount of discussion related to the differences between performance-based and prescriptive regulations and the use of safety case regimes in the United States a detailed comparison crosswalk between US offshore requirements and those of a safety case country (UK or Norway) to identify similarities, gaps or inconsistencies. 18

19 Objectives The Guidance or other recommendations provided by each regulatory agency during the plan or permitting review process The content of industry standards that are contained in regulations or listed as guidance by the regulatory agency SEMS, the DWOP process, alternative technology regulations, and permit conditions used in the U.S regulatory regime An evaluation of typical documents and requirements that are incorporated into safety case documents that are submitted to the regulator How operators in each jurisdiction define an acceptable level of risk Standard industry practices and processes that are not required by regulators but commonly used in each jurisdiction The roles played by third party certifiers and reviewers 19

20 Methodology Review of previous reports and relevant literature Conduct a detailed comparison among the regulations, standards, guidelines implemented or recommended by the regulatory agencies in the US, UK and Norway Identify similarities and inconsistencies between regulatory regimes and possible areas of further focus in the U.S. regulations Final SME review 20

21 Analysis Complete A history, review and comparison of U.S., U.K., and Norwegian regulatory schemes. 21

22 Director s Task 2 Research Material Hardness (Bolts, Subsea equipment) Zonal Isolation (Shallow liners and sub-mudline casing hangers) 22

23 Efforts Bolts and Fasteners Participating in BSEE and Industry meetings and discussions. Prepared to lead/facilitate a Bolt/Fastener Joint Industry Project. Zonal Isolation and cementing Research ongoing White Paper in November BSEE.GOV Dr Eric Van Oort 23

24 Director s Task 3 Forums 24

25 2016 Forum Topics Keeping a Barrier Focus in Tough Economic Times; Stakeholder Efforts including Risk-Based Inspections 18 May 2016, University of Houston Identifying, mitigating and managing Alarm overload for watch standers on the Bridge, Drill Floor and Control Room. 24 August 2016, Maersk Training Managing Drilling Margins and Well Control Risk, ensuring Risk and Innovation are not impacted. 29 November 2016, Schlumberger 25

26 Director s Task 4 BSEE Science and Technology Challenge 26

27 2016 BSEE Technology Challenge 27

28 Way Forward Strengthening relationship with IPAA/PESA Energy Education Center Leveraging existing University STEM programs Educator support and training Tech Challenge Houston, 3 March 2017 New Orleans, TBD California, TBD Winner announced OTC 2017 Leverage 2016 lessons learned for future Tech Challenge events 28

29 Director Salerno 2015 Task Summary Task 1 (Regulatory Comparison) Complete Task 2 (Research) Continued execution of both OESI collaborative efforts and external collaboration Task 3 (Forums) On track for continued execution of Forums based on Advisory Committee and sponsor input Task 4 (Tech Challenge) On track for second year project execution, with expansion of High Schools and locations 29

30 Collaborative Research 30

31 Near-term Research Plan Research Areas Leading Institute Partner Institute New Material (polymers, bolts) UH A&M Human Factor Engineering & Risk Management (leading indicators, human centered design for deep water) Well Construction (well control, zonal isolation, casing) A&M UT UT UH 31

32 New Materials in Support of Offshore Operations Research Statement To develop, test and validate new materials that support offshore operations and help improve the safety and reliability of exploration and production Research Challenge: New/Superior Materials: metal alloys, corrosion, HPHT materials, elastomers, structural health monitoring, integrated sensor, polymers Engineered materials offering improved properties allowing for new designs of offshore structures and operational components such as risers, etc. need to be developed. Serious barriers such as material and fabrication costs, needed design innovations, and the reliability, repair, and inspection of advanced engineered materials need to be addressed. Research Plan R&D work will be coordinated between UH (R. Krishnamoorti, PI, 1.0 FTE) and TAMU (H. J. Sue, co-pi, 0.5 FTE), $80K total budget Developed a plan to develop, test and validate advanced polymeric materials for HPHT and Corrosive Environments Specifically focus on the development & testing of Polyaryletherketones (PAEK) based composites Desired Value to Stakeholders Developing corrosion resistant materials that can be exposed to HPHT conditions remains a significant materials challenge for the industry and is a significant area where applied and realistic materials development along with basic scientific advances can make rapid progress. Both PI and co-pi are engaged in developing advanced materials for extreme environments and bring unique fundamental and applied expertise to address these challenges. 32

33 Human Factors in Support of Offshore Operations Research Statement To conduct focused, applied research that inform a reengineering of the design lifecycle to include Human Systems Integration and Human Centered Design. Addresses possible Human Factors (HF) issues associated with: Workplace and interface design: fatigue, situation awareness, human machine interface design (for both rig & control room operators), decision support, effective procedure design for comprehension/adherence, etc. Organizational and culture: leadership, safety culture, training, hiring practices, etc. Research Plan R&D work will be coordinated between TAMU (S. C. Peres & M.S. Mannan, PIs, 0.5 FTE each) and UT Austin (R. Bias, co-pi, 0.5 FTE), $80K total budget. Plan being developed for independent, applied research into possible Human Factors (HF) issues that are associated with increased risks for incidents. Research will be done in collaboration with industry partners to allow for directly applicable findings. Desired Value to Stakeholders Estimates indicate that US on & offshore facilities have had a major catastrophic event every ~1.77 years for the last 40 years and that 95%+ of these had direct human involvement in the cause. TAMU and UT Austin intend to conduct applied research in conjunction with industry partners to identify what HF findings need to be incorporated into design and leadership practices to mitigate the likelihood of these incidents. 33

34 Examples of Human Factors Issues Issues with procedures are associated with 65% of all industrial incidents. {left} Categorization of causes of events for company that involves Upstream, Downstream, Midstream, and Shipping Situation Awareness is ones level of awareness of task and environmental conditions, and judging how these may change in the near future to predict how the situation will develop. {below} Shows the number of incident related to elements of situation awareness. Type of incident by the days into the tour Fatigue is the inability to function at the desired level due to incomplete recovery from the demands of prior work, circadian rhythm adjustments, cognitive load, and other waking activities. Acute fatigue can occur when there is inadequate time to rest and recover. Cumulative (chronic) fatigue occurs when there is insufficient recovery from acute fatigue over time. {left} Shows effects of circadian rhythm adjustments as incidents decrease as the duration of the tour extends over time. 34

35 Drilling Safety Zonal Isolation Overview Research Statement To conduct meaningful, applied research and technology development that helps to improve the integrity and reliability of casing and cement barriers in offshore wells Addresses BSEE Director Salerno s grand challenge on integrity of shallow liners and sub mudline casing hangers, and BSEE concerns about cementing Addresses issues associated with achieving, maintaining and verifying lasting zonal isolation (ZI) in offshore wells. Note that ZI problems are historically the leading cause of offshore blowouts, and were a lead cause of the Macondo/DW Horizon event Research Plan R&D work will be coordinated between UT Austin (E. van Oort, PI, 1.0 FTE) and UoH (V. Cumaraswamy, co-pi, 0.5 FTE), $80K total budget Plan being developed for independent, applied basic R&D into hanger reliability and improving the quality of offshore cementations, addressing such issues as improved displacement & cement placement, minimizing cement contamination, etc. Desired Value to Stakeholders Very little independent ZI R&D work is currently ongoing in the industry. UT Austin and UoH intend to execute original work with a strong applied focus to help deepwater operators improve their cementations, particularly across high-pressured / hydrocarbon-bearing zone, and be able to verify their barriers (cement, hangers, seals) better. This will help them improve drilling safety and reduce their exposure to uncontrolled well events. 35

36 Drilling Safety Zonal Isolation Introduction {top Left} Cementing is the leading cause of US Offshore blowouts; {top right} portland cement is very sensitive to contamination by synthetic-based mud (SBM) used for drilling; {bottom right} UT Austin and UoH are working on ground-breaking new technologies such as real-time cement sensors and improved fluid displacement models (example shown) 36

37 White Paper Schedule Human Factors and Ergonomics in Offshore Drilling and Production: The Implications for Drilling Safety TAMU/UT Mid-November High-resolution Three Phase Simulation of Cement Displacement UT/UH Late-November Polymers for High Pressure High Temperature (HPHT) Applications UH/TAMU Early

38 Path Forward 38

39 Metrics Overall Forum Attendance 39

40 FY16 Path Forward Develop Sustainability Ocean Energy Technology Portal Continuing Education classes Transition Working Group Mature Advisory Committee Process Forum topics Research review and Topic prioritization Deliver Initial Research Results Develop Further Research Opportunities Continue Forums for Dialogue Develop Training and Education Opportunities Develop Offshore Equipment Reliability Network 40

41 FY17 Path Forward Continue Forums for Dialogue Develop Sustainability Build out, Business Plan Strategic Plan Deliver Initial Research Results Develop Further Opportunities Research Offshore Equipment Reliability Continue Training and Education Opportunities 41

42 Mission on Track An Institute operating independently to collaborate research for technology advancement and continuing education to support operational improvements and advanced academic programs in the areas of offshore drilling and production safety and spill prevention. promoting dialogue and forums revealing technology gaps through stakeholder engagement and collaborative communications to support the advancement of world-wide ocean energy safety through industry-prioritized, science-based research. developing strategic relationships with academia, the oil and gas industry, regulators and NGOs to increase worker safety and environmental protection. 42

43 Thanks for your time, any questions? Jim Pettigrew Director of Operations 3122 TAMU 400 Brown Building College Station, TX (979) Paul Robinson Program Manager 5000 Gulf Freeway, Building 4, Rm 117 University of Houston, Energy Research Park Houston, TX (713)

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