How Should a Company Plan to Optimize Its HSE Practices in a Low Cost Environment?

With regards to the major catastrophic incident, BP Deep Water Macondo which happened on 20 April 2010, many companies in the oil and gas industry tend to heavily invest in extra Health, Safety and Environment (HSE) programs in order to raise the HSE awareness and standard for their employees. These non-compulsory HSE plans have been introduced into a company in different ways such as in-house initiatives and third party HSE training services. For many years, the price of oil was slightly above 100 $/bbl and the spending extra budget on safety programs was an acceptable practice across the industry. Therefore, the budget at HSE has increased dramatically over this period of time.

However, since mid-2014, the oil price has drastically dropped from about 110$/bbl to 50$/bbl as of October 2016. Most companies in the upstream business have had extremely bad effects on their incomes; they therefore have looked into ways to reduce operating expenditures without compensating their reputation, safety, reliability, and product quality and harming their people. One aspect to help corporations achieve this goal is to optimize the HSE practices.

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