risk paper 1

Topics: Petroleum, Oil sands, Risk management Pages: 6 (1757 words) Published: October 12, 2013


DEPLOYMENT OF KEYSTONE PIPELINE SYSTEM
RISK MANAGEMENT PLAN
PROJ 595- PROJECT RISK MANAGEMENT
09/22/2013

TABLE OF CONTENT

1. ABSTRACT
2. FAULT TREE ONE
2.1 FAULT TREE ANALYSIS ONE
3. EVENT TREE
3.1 EVENT TREE ANALYSIS
4. CONCLUSIONS
5. REFERENCES

ABSTRACT
The project report is designed to select a major construction project and prepare a risk management plan for that construction project. The project report is a part of the course Project Risk Management which helps us to identify, analyse and respond to project risk in order to maximize results of positive events and minimize the consequences of adverse events. This project report has emphasized on the risk management plan associated with deployment of keystone pipeline system. This report will include the list of two potential risks associated with this major construction project, fault tree analysis and an explanation of causes and consequences of these potential risks. Keystone is a key link between US demands and Canada supply. TransCanada Keystone Pipeline proposes to construct and operate a crude oil pipeline and related facilities from Hardisty, Alberta, Canada to the Port Arthur and east Houston areas of Texas in the United States. The project, known as the Keystone XL Project, will have a nominal capacity to deliver up to 900,000 barrels per day of crude oil from an oil supply hub near Hardisty to existing terminals in Nederland near Port Arthur and Moore Junction in Houston, Texas. The Steele City Segment extends from Hardisty, Alberta, southeast to Steele City, Nebraska. The Gulf Coast Segment extends from Cushing, Oklahoma, south to Nederland, Texas. The Houston Lateral extends from the Gulf Coast Segment, Liberty County, Texas, southwest to Moore Junction, Harris County, Texas. In total, the Project will construct approximately 1,707 miles of new, 36-inch-diameter pipeline, consisting of about 327 miles in Canada and 1,375 miles within the US. It will interconnect with the northern and southern termini of the previously approved 298-mile-long, 36-inch-diameter Keystone Cushing Extension segment of the Keystone Pipeline Project. The Project proposes to transport up to 900,000 barrels of crude oil per day. This proposed volume would be 309,000 barrels greater than the rate of 591,000 barrels per day that was analysed for the Keystone Cushing Extension in the previous Keystone Pipeline permitting process, completed in 2008. Spill risk and potential environmental consequences described in this Risk Assessment are based on transportation of up to 900,000 barrels per day through all Project pipeline segments within the U.S. Because of this increase in throughput volume, the Keystone Cushing Extension is included as part of the overall Keystone XL Project for spill risk analysis purposes.

FAULT TREE ANALYSIS

OR

OROR

The fault tree analysis above analysis the first potential risk associated with the Keystone XL Pipeline project. The first major potential risk associated with the project is the oil spill. The project isn’t complete yet, but there have already been major oil spill events due to the project. We will first analyse the causes of the oil spill. Oil spills occurs due to rupturing or bursting of the pipeline line. Pipeline rupturing can be caused due to several reasons, but narrowing down to few major causes; it can be caused due to decreased strength of pipeline or due to hydraulic pressure.

Strength of the pipeline can be decreased due to several reasons, like corrosion, design factors, external hazards, errors in construction, due to accidents, etc. The bursting of the pipeline creates a major oil spill which is a major risk factor for the surrounding, environment, public safety etc. Rupture due to design factor can be cause by bad selection of material or bad selection of pipeline thickness, whereas external hazards can be natural hazards like earthquake,...

References: [1] Julia Apland Hitz (2011). What are the Keystone XL pipeline risks to water resources. The Earth Institute Columbia University. Retrieved From http://blogs.ei.columbia.edu/2011/10/10/what-are-the-keystonexl-pipeline-risks-to-water-resources/
[2] Alex Formuzis ( 2013). Poison in the pipeline-Toxic risk keystone XL. Environmental Working Group. Retreived From http://www.ewg.org/release/poison-pipeline-toxic-risk-keystone-xl
[3] Gemini Fox (2013). The Keystone XL Pipeline- Facts and Fairytales. Hubpages. Retrieved From http://geminifox.hubpages.com/hub/The-Keystone-XL-Pipeline-Facts-and-Fairytales
[4] July 2009. Keystone XL Project Pipeline Risk Assessment and Environmental Consequence Analysis. Retrieved From http://keystonepipeline-xl.state.gov/documents/organization/205569.pdf
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