Wednesday, March 2, 2016 Houston, TX. 11:00 a.m. 12:15 p.m. OCCUPATIONAL DISEASE EXPOSURES IN THE OIL & GAS INDUSTRY: BRINGING SAFETY TO THE SURFACE

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1 Wednesday, March 2, 2016 Houston, TX 11:00 a.m. 12:15 p.m. OCCUPATIONAL DISEASE EXPOSURES IN THE OIL & GAS INDUSTRY: BRINGING SAFETY TO THE SURFACE Presented by Alex Beaver Energy Underwriting Consultant Commercial Insurance Energy Business Liberty Mutual Workers in the oil and gas industry routinely operate and handle heavy machinery, hazardous materials, and chemical byproducts. These activities make them particularly susceptible to occupational diseases (OD). The topic returned to center stage following an April 2015 Wall Street Journal article, Why Did These Oil Workers Die?, which highlighted the mysterious deaths of at least 10 oil field workers over the past five years. This session will identify five of the leading OD exposures, including volatile organic compounds (VOC), silica, diesel exhaust, naturally occurring radioactive material (NORM), and noise. Additionally, we ll outline some recommended tactics contractors can implement to help reduce these exposures in the workplace, ultimately allowing them to better manage the risks of worker injuries and illness, higher medical costs, government fines, and damage to their reputations. Copyright 2016 International Risk Management Institute, Inc. 1

2 Notes This file is set up for duplexed printing. Therefore, there are pages that are intentionally left blank. If you print this file, we suggest that you set your printer to duplex. 2

3 Alex Beaver Energy Underwriting Consultant Commercial Insurance Energy Business Liberty Mutual Alex Beaver is an underwriting consultant in the Specialty Energy division at Liberty Mutual Insurance. Based in Houston, Texas, he is responsible for underwriting strategy, performance and profitability across primary casualty lines of business. Mr. Beaver has over 7 years experience in the insurance industry, specializing in liability coverage for the oil and gas sector. Mr. Beaver has a Bachelor of Arts from the University of North Carolina. 3

4 Notes This file is set up for duplexed printing. Therefore, there are pages that are intentionally left blank. If you print this file, we suggest that you set your printer to duplex. 4

5 Occupational Disease in the Oil & Gas Industry Presented By: Alex Beaver Underwriting Consultant Liberty Mutual Insurance #IRMI As solution-driven underwriters, with energy expertise, we deliver integrated products and services to address your most complex risks 2 5

6 UNITED STATES largest energy producer surpassing major exporters RUSSIA SAUDI ARABIA 3 JOB GROWTH % 1% 4 6

7 160,000 NEW WORKERS 5 Technology pushing the limits changing the risk landscape 6 7

8 What factors are influencing the risk of occupational disease? demand for sand more fluid in more fluid out Magnitude of multiple hazards DEMAND FOR SAND 8 8

9 4.2M lbs. SAND PER WELL ELEPHANTS 10 9

10 Silica dust can be highly hazardous RESPIRABLE CRYSTALLINE SILICA silicosis lung cancer pulmonary tuberculosis irreversible damage 11 * NIOSH FIELD STUDY 116 air samples 11 frac sites 5 states 12 * NIOSH: National Institute of Occupational Safety and Health 10

11 DANGEROUSLY HIGH LEVELS OF SILICA 79% samples exceeded NIOSH-REL * 13 *REL: Recommended Exposure Limit (0.05 mg/m3) 02. More FLUID IN More FLUID OUT 14 11

12 20 40% of fluid returns to surface 15 FLOWBACK WATER OIL GAS 16 12

13 TANK GAUGING 17 THE WALL STREET JOURNAL April 21, 2015 PATTERN OF FATALITIES 18 13

14 19 Volatile Organic Compounds (VOCs) VOLATILE (evaporate easily) ORGANIC COMPOUNDS (contain carbon atoms) 20 14

15 Petroleum contains a variety of VOCs B T E X Benzene Toluene Ethylbenzene Xylene 21 * NIOSH FIELD STUDY 35 air samples 6 flowback sites 2states 22 * NIOSH: National Institute of Occupational Safety and Health 15

16 MAGNITUDE of Multiple Hazards 24 16

17 HAZARDOUS NOISE 25 DIESEL PARTICULATE 26 17

18 NORM naturally occurring radioactive material

19 The Good News? There are SOLUTIONS. Work with your broker, insurer and others to Understand the specific risks you face. Review controls currently in place to prevent exposure. Develop the case for additional controls. 29 occupational disease is PREVENTABLE 30 19

20 Confront Risk In A Systematic Manner Anticipation Recognition INDUSTRIAL HYGIENE PROCESS Control Evaluation 31 RISK FREQUENCY LIKELIHOOD SEVERITY (exposure opportunity) (chance of occurrence) (degree of harm) PROBABILITY (occurrence opportunity) Categorize risk in terms of level of exposure (likelihood) and health effect (severity) 32 20

21 33 IDENTIFY similar exposure groups RANK potential health hazards RISK PRIORITIZE efforts to reduce risk 34 21

22 most effective Hierarchy of Controls ELIMINATION Remove the hazard during design SUBSTITUTION ENGINEERING CONTROLS ADMINISTRATIVE CONTROLS Replace with less hazardous material, process, operation Isolate people from the hazard Change the way people work PPE Protect the worker with personal protective equipment least effective 35 despite budget constraints we have to be proactive today 36 22

23 And seek partnerships to help reduce costs 37 UNDERWRITERS BROKERS RISK MANAGERS share present gain trends solutions commitment 38 23

24 ADDITIONAL SOURCES OF HELP Methods of Control NIOSH-OSHA Hazard Alert: Silica NIOSH-OSHA Hazard Alert: Gauging & Sampling CDC-NIOSH Science Blog: Volatile Chemicals Flowback Professional Assistance WC Workers Comp Carriers Industrial Hygiene Consultation Services 39 STATE SUPPORT offering free consultation services for qualified employers TX OK NM ND WY CO AR CA txoshcon.com ok.gov/odol env.nm.gov/ohsb_website/consultation bismarckstate.edu/continuingeducation/ndosh wyomingworkforce.org/businesses/osha csu-cvmbs.colostate.edu/academics/erhs/osha labor.ar.gov/divisions/pages/oshaconsultation.aspx dir.ca.gov/dosh/ 40 24

25 To enter the drawing for a cash prize, affix your personal bar code label here or complete this evaluation online. W4. OCCUPATIONAL DISEASE EXPOSURES IN THE OIL AND GAS INDUSTRY: BRINGING SAFETY TO THE SURFACE Rating scale for all questions: 4 = Excellent 3 = Very Good 2 = Average 1 = Somewhat Disappointing 0 = Very Disappointing Overall rating for this workshop? Alex Beaver Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Comments: