Management of Change in the Energy Sector: An Oclas Consulting White Paper

Executive Summary

The oil and gas sector is a complex and hazardous industry, and it is essential for companies in this sector to have a robust Management of Change (MoC) process in place. MoC is a system for identifying, evaluating, and managing changes to a company's operations. It helps to ensure that changes are implemented safely and effectively and that they do not have unintended consequences.

This white paper provides an overview of MoC in the oil and gas sector. It discusses the importance of MoC, the different steps involved in the MoC process, and some examples of where MoC has gone wrong. The paper also provides recommendations for how companies can improve their MoC processes.

Introduction

The oil and gas sector is constantly changing, as new technologies are developed and regulations are updated. This makes it essential for oil and gas companies to have a robust MoC process in place.

MoC is a system for identifying, evaluating, and managing changes to a company's operations. It helps to ensure that changes are implemented safely and effectively and that they do not have unintended consequences.

The MoC process typically includes the following steps:

1. Identify changes: The first step is to identify all potential changes that could impact the company's operations. This includes changes to equipment, processes, procedures, personnel, or the environment.

2. Assess the impact: Once the changes have been identified, they need to be assessed for their potential impact on safety, operability, and compliance. This assessment should consider the following factors:

• The nature of the change

• The likelihood of the change occurring

• The severity of the consequences if the change does occur

3. Develop a plan: Once the impact of the change has been assessed, a plan needs to be developed for managing it. This plan should include the following elements:

• Who will be responsible for implementing the change?

• What resources will be needed?

• What steps will be taken to mitigate the risks?

• How will the change be communicated to stakeholders?

4. Implement the change: Once the plan has been developed, it needs to be implemented. This may involve making changes to procedures, training personnel, or modifying equipment.

5. Monitor and review: The final step is to monitor and review the change to ensure that it is implemented as planned and that it is having the desired impact. This may involve conducting audits or collecting feedback from employees.

Importance of MoC

MoC is important for a number of reasons, including:

• To ensure the safety of employees and the public

• To prevent accidents and incidents

• To protect the environment

• To comply with regulations

• To improve efficiency and productivity

• To reduce costs

Examples of where MoC went wrong

There have been a number of cases where MoC failures have led to accidents and disasters in the oil and gas industry. Here are a few examples:

• In 2005, a refinery explosion in Texas City, Texas, killed 15 people and injured more than 170 others. The explosion was caused by a failure to manage changes to the refinery's operating procedures properly. [1]

• In 2010, the Deepwater Horizon oil spill in the Gulf of Mexico killed 11 people and caused an environmental disaster. The spill was caused by a number of factors, including a failure to manage changes to the drilling rig's operating procedures properly. [2]

• In 2015, a gas leak in a pipeline in Aliso Canyon, California, caused a massive evacuation and environmental damage. The leak was caused by a failure to manage changes to the pipeline's maintenance procedures properly. [3]

These are just a few examples of the many cases where MoC failures have had devastating consequences. By following the steps outlined above, oil and gas companies can help to prevent these accidents from happening.

Recommendations for improving MoC

There are a number of things that oil and gas companies can do to improve their MoC processes. These include:

• Ensuring that MoC is a top priority for the company

• Investing in training and resources for MoC

• Developing clear and concise MoC processes and procedures

• Communicating MoC effectively to all stakeholders

• Monitoring and reviewing MoC processes regularly

By following these recommendations, oil and gas companies can help to ensure that their MoC processes are effective and that changes are implemented safely and effectively.

References

• "Management of Change in the Oil and Gas Industry." API RP 580, 2021, api.org/products-and-services/standards/management-of-change-in-the-oil-and-gas-industry.

• "Management of Change." International Association of Oil & Gas Producers, 2022, iadc.org/iadclexicon/management-of-change.

• "The Importance of Management of Change in the Oil and Gas Industry." The American Institute of Chemical Engineers, 2022, aiche.org/resources/chemical-engineering-topics/management-of-change-moc.

• "Case Studies in Management of Change." The Center for Chemical Process Safety, 2022, ccpsafety.org/resources/case-studies/management-of-change.

• "Texas City Refinery Explosion." Wikipedia, the Free Encyclopedia, Wikimedia Foundation, 2023, en.wikipedia.org/wiki/Texas_City_refinery_explosion.

• "Deepwater Horizon Oil Spill." Wikipedia, the Free Encyclopedia, Wikimedia Foundation, 2023, en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill.

• "Aliso Canyon Gas Leak." Wikipedia, the Free Encyclopedia, Wikimedia Foundation, 2023, en.wikipedia.org/wiki/Aliso_Canyon_gas_leak.

• Management of Change in Energy