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Table of Contents

Preface . ...................................................................................................................................xv

Chapter 1
General Approach to Risk Analysis ...........................................................................................1
Davorin Matanovic, University of Zagreb, Croatia

Chapter 2
Risk Due to Wellbore Instability . ............................................................................................23
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia

Chapter 3
Risk Due to Pipe Sticking ........................................................................................................47
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia

Chapter 4
Lost Circulation .......................................................................................................................73
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia

Chapter 5
Simultaneous Operations .........................................................................................................96
Zdenko Kristafor, University of Zagreb, Croatia

Chapter 6
The Macondo 252 Disaster: Causes and Consequences.........................................................115
Davorin Matanovic, University of Zagreb, Croatia
Chapter 7
Risk Analysis of Completion and Production Systems .........................................................132
Davorin Matanovic, University of Zagreb, Croatia

Chapter 8
Risk and Remediation of Irreducible Casing Pressure at Petroleum Wells ...........................155
Andrew K. Wojtanowicz, Louisiana State University, USA

Chapter 9
Risk Analysis in the Process of Hydraulic Fracturing ...........................................................181
Sonja Koščak Kolin, University of Zagreb, Croatia
Marin Čikeš, University of Zagreb, Croatia

Chapter 10
Workover Impact on Accidental Risk ....................................................................................199
Bojan Moslavac, University of Zagreb, Croatia

Chapter 11
Gathering Systems and Processing Facilities Risk Analysis .................................................218
Svijetlana Dubovski, INA Plc, Croatia

Chapter 12
Activities in Oil and Gas Processing for Avoiding or Minimizing Environmental
Impacts . .................................................................................................................................247
Svijetlana Dubovski, INA Plc, Croatia

Chapter 13
Transportation Risk Analysis .................................................................................................264
Dragan Crnčević, INA Plc, Croatia

Chapter 14
Oil and Gas Storage Tank Risk Analysis ...............................................................................303
Katarina Simon, University of Zagreb, Croatia

Chapter 15
CO2 Underground Storage and Wellbore Integrity ................................................................322
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia
Chapter 16
Petroleum Industry Environmental Performance and Risk ...................................................358
Lidia Hrncevic, University of Zagreb, Croatia

Compilation of References ..................................................................................................388

About the Contributors .......................................................................................................410

Index.......................................................................................................................................413
Detailed Table of Contents

Preface . ...................................................................................................................................xv

Chapter 1
General Approach to Risk Analysis ...........................................................................................1
Davorin Matanovic, University of Zagreb, Croatia
Broadly accepted methodology that is implemented in the oil industry when dealing with risks
includes as the first step the identification of possible hazards. That is done by gathering informa-
tion about degree of risk according to working procedures, processes, and individuals involved
in the operation of the process. That is the first step in risk management, an iterative process
that must lead to the use of proper measurements in the way of protecting people, facilities
and environment. The analysis is done based on the combination of probability and severity of
undesirable events, and the final consequences. Explanation of basic terms, their interdepen-
dence, dilemmas, and methods of risk analysis are introduced. Each method is shortly described
with main anteriority and shortcomings. Differences between quantitative methods, qualitative
methods, and hybrid methods (the combination of qualitative-quantitative or semi-quantitative
methods) are elaborated. The impact, occurrence, and the consequences are at the end compared
to risk acceptance criteria concept. The ALARP (As Low as Reasonably Practicable) framework
is explained with some observation on the quality and acceptance in petroleum industry. Finally,
the human impact on the risk and consequences is analyzed.

Chapter 2
Risk Due to Wellbore Instability . ............................................................................................23
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia
Exploration and production as one of the most important parts of the petroleum industry en-
counters different problems, usually resulting in nonproductive time and additional expenses.
The most common and most expensive of them are related to wellbore instability and associ-
ated problems. Wellbore instability problems are usually related to drilling operation, but they
can also appear during completion, workover, or the production stage of a certain well. The
traditional solution for wellbore instability problems is composed from the early recognition
of specific wellbore instability problems, the main cause identification and swift response. For
more effective solution it is necessary to incorporate wellbore stability and risk assessment in
the early phase of well design. This chapter gives one general overview of wellbore instability
problems and their causes as well as an overview of actual approaches and methods in wellbore
stability and risk assessment.
Chapter 3
Risk Due to Pipe Sticking ........................................................................................................47
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia
A stuck pipe is a common worldwide drilling problem in terms of time and financial cost. It
causes significant increases in non-productive time and losses of millions of dollars each year in
the petroleum industry. There are many factors affecting stuck pipe occurrence such as improper
mud design, poor hole cleaning, differential pressure, key seating, balling up of bit, accumula-
tion of cuttings, poor bottom hole assembly configuration, etc. The causes of a stuck pipe can be
divided into two categories: (a) differential sticking and (b) mechanical sticking. Differential-
pressure pipe sticking occurs when a portion of the drill string becomes embedded in a filter
cake that forms on the wall of a permeable formation during drilling. Mechanical sticking is
connected with key seating, formation-related wellbore instability, wellbore geometry (devia-
tion and ledges), inadequate hole cleaning, junk in hole, collapsed casing, and cement related
problems. Stuck pipe risk could be minimized by using available methodologies for stuck pipe
prediction and avoiding based on available drilling parameters.

Chapter 4
Lost Circulation .......................................................................................................................73
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia
Lost circulation is defined as the uncontrolled flow of mud into a thief zone and presents one of
the major risks associated with drilling. The complete prevention of lost circulation is impossible,
but limiting circulation loss is possible if certain precautions are taken. Failure to minimize lost
circulation can greatly increase the cost of drilling, as well as the risk of well loss. The risk of
drilling a well in areas known to contain potential zones of lost circulation such as fractured,
cavernous, or high permeability formations is a key factor in making a decision to approve or
cancel a drilling project. The successful management of lost circulation should include iden-
tification of potential loss zones, optimization of drilling hydraulics, and remedial measures
when lost circulation occures.

Chapter 5
Simultaneous Operations .........................................................................................................96
Zdenko Kristafor, University of Zagreb, Croatia
Simultaneous operations can be defined as conducting independent operations in which the
course of any operation may impact the safety of personnel, equipment, and environment of
another operation. Operations are meant in terms of performing drilling, completion, work-
over, and construction or production activities simultaneously, mainly at offshore facilities. In
general, they have an impact on the installation safety procedures and contingency planning
program. Thus, for the purpose of performing simultaneous operations, they must comply with
organizational safety and technological requirements. They are to be coordinated through joint
planning efforts by supervisors who plan and direct activities. Typical chain-of-command as
well as simultaneous operations decision making process flow diagrams are presented in this
chapter. Basic steps to be regarded are performing risk assessment, assess and control risks,
monitor the simultaneous tasks and communicate the control measures. Communication is the
key to performing these tasks safely.
Chapter 6
The Macondo 252 Disaster: Causes and Consequences.........................................................115
Davorin Matanovic, University of Zagreb, Croatia
The disaster of the Deepwater Horizon platform, while drilling the Macondo 252 well in the Gulf
of Mexico in 2010 is for now the last of numerous tragedies, blowouts, and oil spills resulting
from petroleum engineering activities. After the accident, several commissions, investigation
groups, advisory committees, and company reports were prepared. They investigate causes and
consequences of the disaster from different standpoints, but mainly come to the same conclu-
sions. The “nth” approach is presented in this chapter.

Chapter 7
Risk Analysis of Completion and Production Systems .........................................................132
Davorin Matanovic, University of Zagreb, Croatia
A variety of definitions are available through the literature, but the universal one is in defining
the well completion as the optimal path for the reservoir fluids to be produced. That means to
achieve a desired production with minimal costs. Wells represent the greatest part of expenditure
when developing the reservoir. For a long period of time it was defined to be simple, reliable,
and safe with enough flexibility to allow future operations. Nowadays, so called “intelligent
completions” appear to give more financial benefits, flexibility, and control. The reliability of
system components is essential for long-lasting production. In addition, the differences accord-
ing to natural flowing well risk and artificial lift are given.

Chapter 8
Risk and Remediation of Irreducible Casing Pressure at Petroleum Wells ...........................155
Andrew K. Wojtanowicz, Louisiana State University, USA
Oil well cement problems such as small cracks or channels may result in gas migration and
lead to irreducible pressure at the casing head. Irreducible casing pressure also termed, Sus-
tained Casing Pressure (SCP) is hazardous for a safe operation and the affected wells cannot
be terminated without remedial operations. It is believed that even very small leaks might lead
to continuous emissions of gas to the atmosphere. In the chapter, the author describes physical
mechanisms of irreducible casing pressure and qualifies the associated risk by showing statis-
tical data from the Gulf of Mexico and discussing the regulatory approach. This chapter also
introduces a new approach to evaluate risk of casing pressure by computing a probable rate of
atmospheric emissions from wells with failed casing heads resulting from excessive pressure.
Also presented is a new method for assessing potential for self-plugging of such wells flowing
wet gas as the gas migration channels could be plugged off by the condensate.

Chapter 9
Risk Analysis in the Process of Hydraulic Fracturing ...........................................................181
Sonja Koščak Kolin, University of Zagreb, Croatia
Marin Čikeš, University of Zagreb, Croatia
This chapter focuses on risk to the environment from hydraulic fracturing operations, starting
with transport of materials and ending when the well is routed to the production facilities. The
initial assumption for the fracturing risk analysis is that the well is new and was constructed
correctly so that all producible formations are securely isolated behind the barriers of casing
and competent cement. The justification for this assumption is that the vast majority of fractur-
ing is the first major stimulation in a well and occurs immediately after completing a new well.
Although many well development problems are blamed on fracturing, there are only excluded
problems that are real and worthy of the discussion to help define boundaries of the fracturing
risk (King, 2012).

Chapter 10
Workover Impact on Accidental Risk ....................................................................................199
Bojan Moslavac, University of Zagreb, Croatia
Certain risks are very common to any application of a downhole control system during workover
while others will be field-specific or at least increased or decreased by the given well conditions.
Workover anomalies may be caused by erosion, corrosion, mechanical errors, temperature effects
on electronics, wear and tear on the dynamic seals, or seizure of moving components. Obviously,
the simpler the system and the fewer moving parts, the fewer components are available to fail.
Procedures and supporting control software must be developed to ensure optimum system use.
Blowouts are not very common today as most blowout preventing systems serve the purpose.
However, occasionally, these systems may fail due to either technical problems on the wellbore
equipment or human error. Both reasons can cause enormous damage on wellbore equipment,
reservoir, surface facilities, or even human loss. The right accidental risk assessment approach
can reduce the chances of repeating bad scenarios that happened in the past.

Chapter 11
Gathering Systems and Processing Facilities Risk Analysis .................................................218
Svijetlana Dubovski, INA Plc, Croatia
Gathering system is defined as one or more segments of pipeline, usually interconnected to form
a network that transports oil and natural gas from the production wells to one or more produc-
tion facilities, gas processing plant, storage facility, or a shipping point. There are two types of
pipeline networks: radial and trunk system. Produced well fluids are often complex mixtures
of the liquid hydrocarbons, gas, and some impurities that can have detrimental effects on the
integrity of the gathering pipelines. It is necessary to eliminate most of the impurities before
oil and natural gas can be stored and sold. Complexity of the processing facility depends on
the treated fluid composition. Environmental impacts during the oil and gas transportation and
processing phase will cause long-term habitat changes. To minimize that, it is very important
to implement appropriate activities across the designing, construction, operational, and decom-
missioning phases.

Chapter 12
Activities in Oil and Gas Processing for Avoiding or Minimizing Environmental
Impacts . ................................................................................................................................247
Svijetlana Dubovski, INA Plc, Croatia
Formal risk assessments are necessary at various phases of the asset life cycle as they help
personnel identify, evaluate, and control hazards that could result in loss of life, injury, pollu-
tion, property damage, or business disruption. Hazard evaluations of production development
concepts or facility design are well-defined processes, for which much literature is available as
guidance. Such evaluations are mandated in some jurisdictions for project regulatory approval.
This chapter provides guidance on activities implementation from designing phase, construction
phase, operational phase, and decommissioning phase of gathering and processing systems. For
each phase, activities that can be implemented to avoid or minimize environmental impact are
described, emphasizing the implementation purpose.
Chapter 13
Transportation Risk Analysis .................................................................................................264
Dragan Crnčević, INA Plc, Croatia
Petroleum is transported across the water in barges and tankers, and on land, using pipelines,
trucks, and trains. Natural gas is moved, mainly, by pipelines. The most common causes of
tanker accidents are: fire/explosions, loading/offloading, structural damage, collision, and
grounding. Pipeline accidents are due to: corrosion, third parties activities, mechanical damage,
natural events, and operational error. Some of the most commonly applied preventive activities
that reduce spills in waterborne transportation are: double-hulled tanker, navigation safety and
radio communications equipment, tanker exclusion zone, etc. The pipeline condition can be
recorded by using various nondestructive measurement techniques or by chemical analysis of
fluid flows. Different types of sensors can be used to locate and determine the size of an anomaly
in the pipeline geometry. Mayor methods for detecting leaks are measuring the hydrodynamic
parameters or registering abnormal conditions in the fluid flow and detecting phenomena in the
immediate vicinity of the pipeline.

Chapter 14
Oil and Gas Storage Tank Risk Analysis ...............................................................................303
Katarina Simon, University of Zagreb, Croatia
Storage tanks are widely used in the oil refinery and petrochemical industry in storing a multi-
tude of different products ranging from gases, liquids, solids, and mixtures. Design and safety
concerns have become a priority due to tank failures causing environment pollution as well as
fires and explosions, which can result in injuries and fatalities. The chapter illustrates different
types of crude oil and oil product storage tanks as well as the risks regarding the storage itself.
Considering that the natural gas, in its gaseous state, is stored in underground storages like oil
and gas depleted reservoirs, aquifers or salt caverns, and there are numerous publications and
books covering the subject in detail, this chapter only illustrates the storage of liquefied natural
gas and the risks posed by its storage.

Chapter 15
CO2 Underground Storage and Wellbore Integrity ................................................................322
Nediljka Gaurina-Medjimurec, University of Zagreb, Croatia
Borivoje Pasic, University of Zagreb, Croatia
Geologic storage is the component of Carbon Capture and Storage (CCS) in which the carbon
dioxide (CO2) is disposed in the appropriate underground formation. To successfully inject
CO2 into the subsurface to mitigate greenhouse gases in the atmosphere, the CO2 must to be
trapped in the subsurface and must not be allowed to leak to the surface or to potable water
sources above the injection zone. For the purposes of risk assessment, a priority is to evaluate
what would happen if CO2 migrated unexpectedly through the confining unit(s), potentially
resulting in undesirable impacts on a variety of potential receptors. One of the main risks iden-
tified in geological CO2 storage is the potential for CO2 leakage through or along wells. To
avoid leakage from the injection wells, the integrity of the wells must be maintained during the
injection period and for as long as free CO2 exists in the injection zone.
Chapter 16
Petroleum Industry Environmental Performance and Risk ...................................................358
Lidia Hrncevic, University of Zagreb, Croatia
The petroleum industry holds long- and short-term environmental risks. Besides production
fluids, all petroleum industry activities involve either use of fluids, which contain abundant
substances, or waste generation, both associated with potential risk to the environment. The
principal environmental risk associated with the petroleum industry is the risk of fluid spill/
emission to the environment. Although in recent decades the risk analysis methodologies have
matured, to date there is still no universally accepted methodology for environmental risk as-
sessment in petroleum industry. In this chapter, the petroleum industry’s environmental incident
history and statistics are presented. The environmental impact of the petroleum industry’s ac-
tivities, its extent, and trends are analyzed. The overview of pollution sources with associated
environmental risk is given along with the analysis of the causes and consequences of incidents
in the petroleum industry.

Compilation of References ..................................................................................................388

About the Contributors .......................................................................................................410

Index.......................................................................................................................................413

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