© 2013 Chevron U.S.A. Inc.

AIChE/SACHE 2013 Faculty Workshop

August 21, 2013, Richmond CA

Process Safety Management in

Upstream and Gas

© 2013 Chevron U.S.A. Inc.

Areas of Discussion

2

Backdrop Needs Approach

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China

Angola

Nigeria

Brazil

Gulf of Mexico

Indonesia and

the Philippines

Canada UK and

Netherlands

Backdrop: Geographic Diversity

3

Million bbls per day

Production in 2012

Countries

outside of the United States 2.61 20+

San Joaquin

Valley

Mid Continent Appalachia

Argentina

Columbia and

Venezuela

Australia

Thailand and Vietnam Bangladesh

Kazakhstan

Saudi Arabia

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Operational Diversity

4

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Growth

5

Continued Development of

Existing Production

Reliability and efficiency improvement

Enhanced recovery

Expanded production

New Development Areas and

Opportunities

Deepwater

LNG

Sour gas

Shale gas

Gas to liquids

Oil sands

© 2013 Chevron U.S.A. Inc.

OE Equation Potential for occurrence of a high impact incident in our expanding,

complex portfolio is mitigated by our OEMS,OE culture and workforce OC

6

Growing Portfolio

Increased Complexity

Aging Infrastructure

Decreasing Stakeholder

Tolerance

Increasing Costs of

Incidents

Production, Cost and

Schedule

OE Management System

OE Culture

Workforce Organizational

Capability

Zero Many Serious Incidents

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Approach to Applying Process Safety Management

7

Standardize Verify Prioritize

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Standardize

8

© 2013 Chevron U.S.A. Inc.

Prioritize

9

Key Risk - Loss of

Containment

Toxic release

Ignited release

(fire & blast)

Multiple causes –

integrity, design

procedural

Key Activities

Major Sim Ops

Turnarounds

Drilling

Phased Start-up

Construction

Maintenance

Key Facilities

Plants, Terminals

& Gathering

Stations

Sour Operations

Deepwater

Manned Platforms

Drilling Rigs

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Focus on the Future

10

Preparing for

Operations Procedures

Operational readiness

and PSSR

Organizational

readiness

Operator training

Construction Materials verification

Inspection and quality

control

Management of

change

Management of PSI

Engineering Inherently safer

design

Human factors

Risk assessment

Engineering

standards

Material selection

Concept

Selection Siting

Technology selection

Inherently safer

concepts

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Verify

11

Safeguard Stewardship

Building process safety fluency at

all levels of operations and

engineering

Helping leaders understand

where to focus and what

questions to ask

Raising the visibility of metrics -

leading as well as lagging

Building a more formalized

verification system – compliance

assurance

Audit

Improving audit and assurance

at all levels

Audits are both a critical

verification step and

improvement opportunity

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Improvement and Learning

12

The Management System

Process provides a

mechanism to improve at the

system level based on

incident learning, audit

findings, metrics and the

results of field verifications

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Needs: How can you help?

Research that addresses

business needs Inherently safer technologies

Improved understanding of risk

Incident learning and Information

Management

Competency of engineers in

Process Safety Process safety competencies are needed in new

hire engineers - need is not limited to Chemical

Engineers

Instill a sense of vulnerability

13