Advancing Understanding of Offshore Oil and Gas Systemic Risk in the U.S. Gulf of Mexico Current State and Safety Reforms Since the Macondo Well–Deepwater Horizon Blowout (2023) / Chapter Skim
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7 Energy Transition and Systemic Risk Management in the Outer Continental Shelf
7 Energy Transition and Systemic Risk Management in the Outer Continental Shelf
Pages 165-174
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From page 165... ...
While developed with GoM oil and gas operations in mind, the model can be applied equally well to operations in other areas, such as the U.S. West Coast and Alaska, and the special risks that exist in those operating environments, such as earthquakes in both areas and extreme cold in Alaska, where environmental factors affect how risks are managed but do not alter the basic structure of systemic risk.
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From page 166... ...
, hydrogen projects and infrastructure, additional electrification of offshore installations, and electricity generation utilizing offshore wind. Note, however, that even with very aggressive models for transforming our current energy systems, offshore oil and natural gas will continue to be a significant source of primary energy in the decades to come.2 The scale and speed of growth in low-carbon projects, coupled with the increasing diversity of the offshore energy sector, will lead to a corresponding change in the hazards and could increase health, safety, and environmental risks if not well managed and addressed by all stakeholders in a collaborative, cooperative, and strategic manner.
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From page 167... ...
. Fortunately, the energy transition does not require a new systemic risk management process or tool.
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From page 168... ...
Companies and Culture New companies and contractors operating in the offshore as a result of the energy transition may lack awareness of the hazards presented by the offshore environment and may not be familiar with the existing SEMS and other SMS practices and processes currently employed. They may face difficulties in quickly establishing good systemic risk management practices that need to be used offshore.
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From page 169... ...
Activities and Activity Levels The energy transition could result in an expansion of offshore activity and therefore significantly increase the level and breadth of offshore operations. This will include vessel and other marine activity in construction, 3 See https://prospect.org.uk/news/hse-highlights-reversal-in-health-and-safety-across-wind sector.
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From page 170... ...
This increased activity will often be occurring in areas that already have high fishing, shipping, oil and gas, and other offshore use activities. And additionally, the energy transition could increase offshore marine activity not directly related to energy generation but related to CCS, liquefied natural gas, CO2, and H2 transportation and storage, and similar activities including offshore loading and unloading facilities.
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From page 171... ...
The potential hazards of the reuse of these pipelines for the transport of different materials might require new methods and new systemic risk management practices. Of particular concern is the potential reuse of wells and reservoirs for H2 and other types of storage as well as the use of these for CCS.
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From page 172... ...
Regulatory Environment The regulators will need to work together and develop processes for regulation and oversight to quickly adapt to and support new technologies, new operations, and new players while delivering effective systemic risk management. This will need to be done as multiple types of new companies become involved that are unfamiliar with the offshore environment.
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From page 173... ...
The energy transition and new offshore energy systems as well as other new activities in the offshore will not need new processes and tools to systemically manage risk. However, success depends on effective and continuous implementation and use of existing processes including monitoring, learning, and improving.
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