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On the use of risk acceptance criteria in the offshore oil and gas industry

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  • Aven, Terje
  • Vinnem, Jan Erik

Abstract

Risk acceptance criteria, as upper limits of acceptable risks, have been used for offshore activities on the Norwegian Continental Shelf for more than 20 years. The common thinking has been that risk analyses and assessments cannot be conducted in a meaningful way without the use of such criteria. The ALARP principle also applies, but the risk acceptance criteria have played a more active role in the assessment processes than seen for example in the UK. Recently there has, however, been a discussion about the suitability of risk acceptance criteria to assess and control risks. The purpose of this paper is to contribute to this discussion by presenting and discussing a risk analysis regime that is not based on the use of risk acceptance criteria at all. We believe that we can do better if cost-effectiveness (in a wide sense) is the ruling thinking rather than adoption of pre-defined risk acceptance limits. This means a closer resemblance with the ALARP principle as adopted in the UK and other countries, but is not a direct application of this practice. Also the building blocks of the common way of applying the ALARP principle are reviewed. The Norwegian offshore oil and gas industry is the starting point, but the discussion is to large extent general.

Suggested Citation

  • Aven, Terje & Vinnem, Jan Erik, 2005. "On the use of risk acceptance criteria in the offshore oil and gas industry," Reliability Engineering and System Safety, Elsevier, vol. 90(1), pages 15-24.
    • Handle: RePEc:eee:reensy:v:90:y:2005:i:1:p:15-24
    DOI: 10.1016/j.ress.2004.10.009
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    Citations

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    Cited by:

    1. Terje Aven, 2012. "Foundational Issues in Risk Assessment and Risk Management," Risk Analysis, John Wiley & Sons, vol. 32(10), pages 1647-1656, October.
    2. Cerqueti, Roy & Lupi, Claudio, 2015. "Consistent Risk Acceptance Criteria through Networks," Economics & Statistics Discussion Papers esdp15076, University of Molise, Department of Economics.
    3. Langdalen, Henrik & Abrahamsen, Eirik Bjorheim & Selvik, Jon Tømmerås, 2020. "On the importance of systems thinking when using the ALARP principle for risk management," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    4. Sujan, Mark A. & Habli, Ibrahim & Kelly, Tim P. & Gühnemann, Astrid & Pozzi, Simone & Johnson, Christopher W., 2017. "How can health care organisations make and justify decisions about risk reduction? Lessons from a cross-industry review and a health care stakeholder consensus development process," Reliability Engineering and System Safety, Elsevier, vol. 161(C), pages 1-11.
    5. Hu, Shenping & Fang, Quangen & Xia, Haibo & Xi, Yongtao, 2007. "Formal safety assessment based on relative risks model in ship navigation," Reliability Engineering and System Safety, Elsevier, vol. 92(3), pages 369-377.
    6. Ersdal, Gerhard & Aven, Terje, 2008. "Risk informed decision-making and its ethical basis," Reliability Engineering and System Safety, Elsevier, vol. 93(2), pages 197-205.
    7. Kumar, Sourabh & Kumar Barua, Mukesh, 2022. "Modeling and investigating the interaction among risk factors of the sustainable petroleum supply chain," Resources Policy, Elsevier, vol. 79(C).
    8. Moura Carneiro, F.O. & Barbosa Rocha, H.H. & Costa Rocha, P.A., 2013. "Investigation of possible societal risk associated with wind power generation systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 30-36.
    9. Nam, Kiil & Chang, Daejun & Chang, Kwangpil & Rhee, Taejin & Lee, In-Beum, 2011. "Methodology of life cycle cost with risk expenditure for offshore process at conceptual design stage," Energy, Elsevier, vol. 36(3), pages 1554-1563.
    10. Aven, Terje, 2013. "Practical implications of the new risk perspectives," Reliability Engineering and System Safety, Elsevier, vol. 115(C), pages 136-145.
    11. Abrahamsen, E.B. & Aven, T., 2008. "On the consistency of risk acceptance criteria with normative theories for decision-making," Reliability Engineering and System Safety, Elsevier, vol. 93(12), pages 1906-1910.
    12. Tang, Yang & Liu, Qingyou & Jing, Jiajia & Yang, Yan & Zou, Zhengwei, 2017. "A framework for identification of maintenance significant items in reliability centered maintenance," Energy, Elsevier, vol. 118(C), pages 1295-1303.
    13. J Barabady & T Aven, 2008. "A methodology for the implementation of production assurance programmes in production plants," Journal of Risk and Reliability, , vol. 222(3), pages 283-290, September.
    14. J. E. Vinnem & T Aven, 2006. "Case illustration of a decision framework for health, environment, and safety management," Journal of Risk and Reliability, , vol. 220(2), pages 115-121, December.
    15. Terje Aven, 2007. "On the Ethical Justification for the Use of Risk Acceptance Criteria," Risk Analysis, John Wiley & Sons, vol. 27(2), pages 303-312, April.
    16. Vinnem, Jan Erik, 2010. "Risk analysis and risk acceptance criteria in the planning processes of hazardous facilities—A case of an LNG plant in an urban area," Reliability Engineering and System Safety, Elsevier, vol. 95(6), pages 662-670.
    17. Abrahamsen, Eirik Bjorheim & Aven, Terje, 2012. "Why risk acceptance criteria need to be defined by the authorities and not the industry?," Reliability Engineering and System Safety, Elsevier, vol. 105(C), pages 47-50.
    18. Terje Aven, 2013. "On the Meaning and Use of the Risk Appetite Concept," Risk Analysis, John Wiley & Sons, vol. 33(3), pages 462-468, March.
    19. Kumar, Sourabh & Barua, Mukesh Kumar, 2022. "A modeling framework and analysis of challenges faced by the Indian petroleum supply chain," Energy, Elsevier, vol. 239(PE).

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