1. MO/LDE0006.PPT 2000-06-21 1 SOCIETY OF PETROLEUM ENGINEERS Health, Safety and Environment – Good Engineering practices Global Standards/Cost reductions ? Stavanger, 2000-06-26/28 SOCIETY OF PETROLEUM ENGINEERS Health, Safety and Environment – Good Engineering practices Global Standards/Cost reductions ? Stavanger, 2000-06-26/28 Lawrence D. Eicher, ISO Secretary-General

2. MO/LDE0006.PPT 2000-06-21 2 ISO – WHAT DOES IT DO? Finds and builds international agreements on the use of technologies, methods or processes, called International Standards i.e. written international agreements adopted by consensus between parties concerned for consistent use in a given market.

3. MO/LDE0006.PPT 2000-06-21 3 ISO committees in the oil and gas sector: TC 67 – Materials, equipment and offshore structures for petroleum and natural gas industries TC 28 – Petroleum products and lubricants TC 193 – Natural gas TC 192 – Gas turbines TC 58 – Gas cylinders TC 197 – Hydrogen technologies TC 158 – Analysis of gases TC 27 – Solid minerals fuels …. and several others

4. MO/LDE0006.PPT 2000-06-21 4 COST/BENEFITS ANALYSIS FOR IS EXAMPLE: FOCUS ITEMS FOR ISO/TC 67 ISO 10437 (Stream turbines) ISO 10439 (Centrifugal compressors) ISO 10441 (Flexible couplings – special) ISO 13706 (Air-cooled heat exchangers) ISO 13707 (Reciprocating compressors) ISO 13709 (Centrifugal pumps) ISO 14691 (Flexible couplings – general) ISO 10423 (Wellhead & christmas trees) ISO 13535 (Hoisting equipment) ISO 13702 (Control & mitigation of fire & explosion) ISO 13703 (Piping systems) ISO 13623 (Pipelines) ISO 3183-3 (Linepipe) ISO 13847 (Pipeline welding) ISO 14313 (Pipeline valves) ISO 13819-2 (Offshore Structure) ISO 11960 (Casing & tubing) ISO 11961 (Drillpipe) ISO 13680 (CRA casing & tubing) ISO 10426-1, 2 (Well cements) ISO 13500 (Drilling fluids) ISO 10432 (SSSV) ISO 13628-1 (Subsea production systems) ISO 13628-2 (Flexible pipe) ISO 13628-4 (Subsea wellhead of chrismas tree) ISO 13628-6 (Subsea production controls) International Standards published in 1999 (total: 11) IS to be published by the end of the year 2000 (about 30) They will cover almost completely the focus list identified by TC 67 in 1998

5. MO/LDE0006.PPT 2000-06-21 5 EXCHANGE OF GOODS RELATED TO THE FOCUS ITEMS FOR ISO/TC 67 8 billion 2.5 billion 1.5 billion 5 billion 1.5 billion TOTAL USD 20 billion p.a. SUBSURFACE - ISO 10432 (SSSV) - ISO 11960 (Casing & Tubing) - ISO 11961 (Drillpipe) - ISO 13680 (CRA Casing & tubing) - ISO 10426-1, 2 (Well cements) - ISO 13500 (Drilling fluids) SUBSEA SYSTEMS - ISO 13628-1 (Subsea systems) - ISO 13628-2 (Flexible pipe) - ISO 13628-4 (Subsea wellhead & christmas tree) - ISO 13628-6 (Subsea production controls) OFFSHORE STRUCTURES - ISO13819-2 (Offshore structures) OFFSHORE TOPSIDES - ISO 10423 (Wellhead & christmas trees) - ISO 13535 (Hoisting equipment) - ISO 13702 (Control and mitigation of fire & explosion) - ISO 13703 (Piping systems)PIPELINES - ISO 13623 (Pipelines) - ISO 3183-3 (Linepipe) - ISO 13847 (Pipeline welding) - ISO 14313 (Pipeline valves) PROCESS FACILITIES - ISO 10437 (Stream turbines) - ISO 10439 (Centrifugal compressors) - ISO 10441 (Flexible couplings - special) - ISO 13706 (Air-cooled heat exchangers) - ISO13707 (Reciprocating compressors) - ISO 13709 (Centrifugal pumps) - ISO 14691 (Flexible couplings - general) Courtesy of Neil Reeve – Shell – ISO TC 67

6. MO/LDE0006.PPT 2000-06-21 6 COST BENEFIT Total worldwide industry expenditure covered by the ISO/TC 67 focus list standards = USD 20 billion p.a BENEFIT200 million p.a If 1% is saved by the use of the ISO standards then BENEFIT = USD 200 million p.a. 8 million p.a. Investment to achieve this is COST = USD 8 million p.a. Hence RETURN = BENEFIT / COST = 200 / 8 = 25:1

7. MO/LDE0006.PPT 2000-06-21 7 HSE PRACTICE AND GLOBAL STANDARDS IN THE OIL AND GAS SECTOR Up to now, there are no global standards for HSE in the oil and gas sector: –a relatively new criticality –limited data available –concern of market players of being evaluated against specific (and maybe questionable) indicators If market forces (industries, public authorities, consumers) decide that a global set of minimum standards in this field are needed: –ISO would be a very effective framework to develop such standards (probably the most reasonable choice)

8. MO/LDE0006.PPT 2000-06-21 8 HSE PRACTICE AND GLOBAL STANDARDS IN THE OIL AND GAS SECTOR General global standards in this field would represent a significant advantage for most stakeholders: –common understanding of methods and criteria would simplify the interaction among different parties and pressure groups, –would help public authorities to harmonize regulations, –simplification of interactions and harmonization of rules most often lead to optimization of resources and cost savings. However, specific geography conditions – involving a plurality of nations – will be determinant for the definition of specific environmental performance standards

9. MO/LDE0006.PPT 2000-06-21 9 ISO IN THE OIL AND GAS SECTOR Pilot oil and gas sector approach under development (to include, with ISO: OGP, API, CEN, IEC, IRF and other organizations) –strengthen the link between business priorities and technical work programmes –address with a global sector view “boundary issues” (involving different TCs and standards developing organizations) –improve communication to industry professionals, governments and the general public

10. MO/LDE0006.PPT 2000-06-21 10 More detail? All at your fingertips – if your fingertips are stroking the Web: ISO Online: http://www.iso.ch click on ISO servers ISODOC, ISOTC, ISOSTD