Accident costs top £20bn
2 Apr 2014
The combined financial loss from the 100 largest accidents in the global hydrocarbon industry has been estimated at over $34 billion (£20bn) in a new publication by insurance provider Marsh.
The data was published in ‘The 100 Largest Losses 1974-2013: Large property damage losses in the Hydrocarbon Industry’ by Marsh, whose energy loss database holds almost 10,000 records of losses spanning a period of more than 40 years.
The losses are dominated by the upstream (34%) and refining sectors (29%), with the petrochemical sector accounting for nearly a quarter of losses (23%).
Gas processing (9%) and distribution sectors (5%) accounted for over one-in-six of losses.
In 2014 there are sobering anniversaries of major disasters from recent decades including Flixborough, Bhopal and Exxon Valdez
IChemE director Andrew Furlong
Marsh reported that eight new losses have entered the 100 largest losses list since 2011, including the Sendai refinery in Japan; the Geismar petrochemical facility, Louisiana; and La Plata refinery, Ensenada in Argentina.
The Piper Alpha Disaster in the North Sea tops the list with estimated losses of $1.8bn (£1bn), followed by the Pasadena petrochemical plant explosion, Texas, which incurred losses of $1.4bn (£842m).
Institution of Chemical Engineers (IChemE) director of policy and communication Andrew Furlong said: “Marsh’s latest report is another stark reminder of the sheer scale of financial loss resulting from process safety incidents. In reality, the financial loss is even greater with 10,000 incidents recorded by Marsh over the past forty years.
“In 2014 there are sobering anniversaries of major disasters from recent decades including Flixborough, Bhopal and Exxon Valdez. The elimination of loss of life and serious injury should be the priority of everyone in the chemical and process industries.
With over 100 recorded accidents so far in 2014 resulting in over 400 deaths and injuries, we all need to do more to improve safety for everyone involved in these hazardous but vital industries.”
Speakers from the oil & gas industry will be appearing at the IChemE’s Hazards 24 safety event for the chemical and process industries next month.
Representatives from BP, Shell and Oil and Gas UK will be among those speaking at the event, which will be held on 7-9 May 2014 at the Edinburgh International Conference Centre.
