Upstream Americas Road Transport Trends & Chronic Unease July 9, 2012 1

Strengthening HSE Culture 2

Tell me what you see… 3

It’s about resetting our tolerance to risk. Chronic Unease Chronic Unease is a pre-occupation with failure, it is about resetting our tolerance to risk and understanding that small failures are signs that something needs fixing. It’s changing: From thinking: “We haven’t had an incident, we are doing so well...” To thinking: “We haven’t had an incident, what are we overlooking and what else do we need to do?” It’s about resetting our tolerance to risk. A state of Chronic Unease is achieved when leaders at all levels have created a culture where they are made aware of weak signals of potential failure, and make effective and timely challenges and interventions on risk assessments and decision making. 4

Chronic Unease (cont’d) Chronic Unease starts with openness, where we welcome bad news and treat incidents as an opportunity to learn. When out on the site we ask the right questions and pick up on signals of potential failure. Chronic unease is a key behaviour for safety leaders at every level to predict and prevent incidents.

Chronic Unease (cont’d) What can you do? Demonstrate your Chronic Unease out in the field – don‘t rely on past successes. Engage with those doing the work – ask “what could go wrong, how did you assess the risk and what controls are in place to prevent it?” Welcome bad news – “what do you not want to tell me?” - and react appropriately. Watch traffic light reporting – challenge the greens and support the reds. Be on the lookout for weak signals - that people are concerned with the current situation, tune into the rhetorical question, the quizzical look on people’s faces, the vague statement(s) or unsure answers.

Upstream Americas Life Saving Rules Violations Chronic unease… Life Saving Rule violations continue. WHY??? LOCATION May YTD   Canada 19 2 11 6 USA 7 1 4 2012 YTD 26 3 15 7

Vehicles Departing the Road & Rollovers   2011 Totals 2012 (May YTD) 2012 Trend Road Departure 98 28 67   2011 Totals 2012 (May YTD) 2012 Trend Rollovers 17 41  Ratio (Departures to Rollovers) 6:1 2:1 Chronic Unease: Road departures  rollovers  fatality 8

Vehicles Departing the Road (2011 & 2012) Total = 126 Light Vehicles = 77 Heavy Goods = 49 (Fluid haulers = 28) 9

Heavy Goods = 20 (Fluid haulers = 17) Rollovers (2011 & 2012) Total = 34 Light Vehicles = 14 Heavy Goods = 20 (Fluid haulers = 17) 10

Rollovers & Departing the Road (2011 & 2012) Total = 150 Light Vehicles = 91 Heavy Goods = 69 (Fluid haulers = 45) 11

Road Departures and Rollover Investigations Investigation findings: Driver Distraction Reaching for items in vehicle. Unfamiliar with vehicle being operated (i.e. location of switches or knobs in cab). Hazard not recognized Hazard assessment training opportunity Driver felt pressured “Time” is inferred or implied Not driving to road conditions…rushing Defensive Driver Training Short Service Employees (SSE) DDT is a Shell requirement 12

Commuting – Upstream Americas 2012 May YTD 24 Incidents (19 in Canada): 14 Wildlife strikes 6 collisions  2 due to fatigue 4 Road departures Recommendations to minimize the number of commutes: Mandate staff stay in camps (where available). Carpool / busses. Journey Management. 13