Extreme weather events such as wildfires, floods, and hurricanes introduce risk to facilities within petroleum production, transportation, and refining/petrochemical operations. These events are increasing with frequency and severity, and have secondary effects on stakeholders impacted by disruption in operations, increased commodity prices, and introduction of safety/environmental threats.
Examples of impacts due to weather events include:
- Hurricane Katrina (2005), which shut down many facilities, disrupted deliverability of product, and increased commodity prices
- Hurricane Harvey (2017) when operators including ConocoPhillips, Baytex, Chesapeake, and Statoil suspended operations in some of their onshore facilities. This in turn impacted the ability of producers to find buyers for crude oil.
This project will develop a digital platform that assesses resiliency and robustness of infrastructure related to the petroleum value chain. This will allow risk mitigation activities to be optimized. The approach will be demonstrated using previous extreme weather case studies.
The resiliency management platform will enable identification and assessment of weather-related threats, facilitate decision-making to mitigate risk from these threats, incorporate them into an existing risk management system, and thereby reduce cost.
Hurricane Harvey shut down 22% of the nation’s refining capacity, vitally disrupted the oil and gas transportation networks that deliver energy to much of the US.
Hurricanes Rita and Katrina have shut more than 23 percent of total U.S. oil refining capacity of 17.1 million barrels per day.