(54cg) Accelerating Safety in the Permian: Implementing Risk Management in Chevron’s “Factory Model” Developments

Chevron has turned to a new development approach in the Permian Basin to take advantage of the rapid growth of shale oil and tight gas opportunities. Known as the Factory Model, this consistent and repeatable process has succeeded in tripling the pace of the Permian drilling program using standard designs for tank batteries, compressor stations, and saltwater disposal facilities. Modification of the traditional risk management process was required to align with the repeatable, manufacturing-style pace of the Factory Model; thus, ensuring that Chevron’s risk criteria are being met for all new developments.

Each design (i.e., tank battery, compressor station, saltwater disposal facility, etc.) was subjected to consequence analysis to determine potential impacts due to releases from various pieces of equipment. These potential impacts represent the worst-case predicted consequences from each type of facility and are used to:

1. Identify safe distances to build Factory Model developments from public receptors
2. Determine safe placement of field personnel occupied buildings
3. Quantify potential severity rankings in the PHAs performed for Factory Model developments

Achieving a fit for purpose risk management process ensures that Chevron’s risk criteria are continually met for Factory Model developments amid evolving designs and process conditions via evergreen review cycles with engineering and execution teams.