Page 10 - CCPS Monograph - Business Decisions

Leaders manage media coverage, legal issues, and business impact even when incidents do
not result in fatalities. The chemical decomposition and fire at Arkema in Crosby, Texas following
the unprecedented flooding resulting from Hurricane Harvey is one such example. (CSB, 2018)

Process safety incidents can
damage a company’s reputation
resulting in significant reduction in
share price up to total loss of
corporate equity. Figure 3 shows
the impact on share price based on
the analysis of twelve process
safety incidents in four countries in
the chemical, petroleum,
pharmaceutical, and power sectors.

Figure 3 – Process safety and finance (Berger, 2021)

Company operations that ceased to exist following major process safety incidents.

• Union Carbide – A toxic chemical release in Bhopal, India, in 1984 resulted in more than
15,000 fatalities. Shortly thereafter, the company was bought by Dow Chemical.

• Occidental Petroleum – The Piper Alpha fire and explosions off the coast of Aberdeen,
Scotland in 1988 resulted in 165 fatalities. Occidental Petroleum no longer operates in
the North Sea. (CCPS, 2008)

• TPC Group – A series of explosions at the Port Neches Chemical plant resulted in eight
injuries and $153 million in offsite property damage. The chemical plant was demolished,
and the site now operates as a terminal handling butadiene, crude C4 and raffinate.
(CSB, 2022) (TPC, 2021)

• Philadelphia Energy Solution (PES) – Multiple explosions in the Philadelphia Refinery
hydrofluoric (HF) acid alkylation unit in 2019 resulted in an HF release, six injuries, and

no offsite impact. PES halted operations and filed for bankruptcy a month after the
incident. (CSB, 2022) (CSB, 2019)

• DuPont – A methyl mercaptan release at the La Porte Chemical facility in 2014 resulted in
four fatalities. The La Porte facility was permanently closed two years later. (CSB, 2019)

• Williams – A reboiler rupture and fire at the Geismar, Louisiana plant in 2013 resulted in
two fatalities and numerous injuries. The site was sold a few years later. (CSB, 2016)

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How Business Financial Decisions Impact Process Safety Performance
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