March 23, 1989 at 9:12pm Exxon Valdez departed from Trans Alaska pipeline terminal in charged by William murphy on the wheelhouse and pilot by Captain Joe Hazelwood. Helmsman Harry Claar was steering. After passing through Valdez Narrows, pilot Murphy left the vessel and Captain Hazelwood took over the wheelhouse. The Exxon Valdez encountered icebergs in the shipping lanes and Captain Hazelwood instructs Claar to pilot the Exxon Valdez out of the shipping lanes to go around the ice. He then handed over control of the wheelhouse to Third Mate Gregory Cousins with precise instructions to turn back into the shipping lanes when the tanker reached a certain point. At that time, Claar was replaced by Helmsman Robert Kagan. For reasons that remain unclear, Cousins and Kagan failed to make the turn back into the shipping lanes and the ship ran aground on Bligh Reef at 12:04 a.m. March 24, 1989. [1] Since the incident, exxon valdez oil spill considered top contributor of damage to the environment with approximately 11 million gallons of crude oil in to the sea.
Introduction
In year 1999 November 30, the Exxon Mobil corporation was formed by merging Exxon and Mobil directly related to John D.Rockfeller's standard oil company. By 1911, Supreme Court of United States with consideration of public outcry ruled that standard oil must be dissolved and split into 34 companies. Two of these companies were Jersey Standard ("Standard Oil Company of New Jersey"), which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil.[2] Unfortunately on march 24 1989, 11million gallons capacity oil tanker named Exxon Valdez struck Bligh Reef in Prince William Sound, Alaska. Regarding the U.S history, it was second largest oil spill incident ever occurred and awarded of $5 billion USD punitive but then reduced to $507.5 million by the U.S supreme court in June 2008. The National Transport Safety Board conducted an investigation on this incident and concluded the probable causes of the grounding were:
1. Due to fatigue and excessive workload, the third mate might be failed to properly maneuvered.
2. Under influence of alcohol, the master possibly failed to provide proper navigation watch.
3. Exxon shipping company failed to monitor the master and provided insufficient with unrested crew for Exxon Valdez.
4. Poor vessel traffic system provided by the U.S coast guard.
5. Ineffective pilot and escort services.
After this tragic incident, Exxon Mobil should adopt the lesson of severity of oil spill which may impact the environment and the company itself. Exxon Mobil bares all expenses for 3years to the cleaning up activity and lost almost a billion. Exxon Mobil must bear in mind that all the parties relate to oil shipping activity must be aware and thoroughly improve them technically and their management system to prevent the oil spill disaster from repeating. They should implement OIMS (Operation Integrity management system) and ISO 140001.
1.0 Aim and Objectives of Exxon Mobil Corporation.
Exxon Mobil set solid objectives in order to meet the worlds growing energy needs by making an entry in the exploration and production of crude oil and natural gases, manufacturing of petroleum products, transportation and scale of crude oil. In order to reach this goal they must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards. There are four principles to guide them in relationship with their shareholders, customers, employee, and communities:
1.1 Shareholders - Exxon Mobil run the business profitably and responsibly with high commitment to improve the long term value of the investment dollars entrusted by their shareholders so they will be rewarded with superior returns. [3]
1.2 Customers - Exxon Mobil accelerate their ability by consistently satisfy ever-changing customer preferences. Therefore, they are innovative and responsive, while offering high quality products and services at competitive prices. [3]
1.3 Employee - Exxon Mobil retain quality workforce by hiring most qualified people and enhance their ability and capability through training and development. Meanwhile open communication, trust, and fair treatment are a base to maintain a safe work environment with diversity. [3]
1.4 Communities - Exxon Mobil operates worldwide and they committed to maintain high ethical standards, obey all applicable laws, rules, and regulations, and respect local and national cultures. Exxon Mobil dedicated to running safe and environmentally responsible operations. [3]
1.5 Conclusion
Since the Exxon Valdez disaster, Exxon Mobil has revised their aim objectives annually and alerts the team members to follow as well.
2.0 Exxon Mobil oil refinery processes and operation
As we know prior to any oil processing, there should be a supply of crude oil which is been shipped using a tankers such like Exxon Valdez from oil rig to the refinery station. Initially there are some methods use reserve the crude oil from damaged. Therefore, Exxon like any other manufacturer process the crude oil by removing the nutrients to the spoilage. This process removes All the natural substances that help digest and metabolize the oils are removed, including: phospholipids (including lecithin); phytosterols (which block cholesterol absorption from the intestines); Vitamin E, carotene and their precursors (which protect oils against damage in storage by their antioxidant properties); chlorophyll (which is rich in magnesium); aromatic and volatile compounds; and minerals.[4] The stored crude oil is cleaned form contaminants such as sand and water before the actual refining process begin. Later, this cleaned crude oil feedstock is heated through the separation furnace. Therefore oil processing involves processes of preparation, extraction, degumming, bleaching, deodorization, and hydrogenation.
2.1 Flow diagram of Exxon Mobil refinery process
Figure 1
In oil refinery plant, refinery process means to convert crude oil into multiple consumer products such as petrol for daily transportation usage. To perform this refinery task for Exxon, a huge 37 refinery base built in 20 countries to serve the refinery capacity. The refinery operates by highly automated control room as shown in figure 1.
Exxon refineries operate with three basic processes:
Separation (fractional distillation)
Conversion (catalytic cracking and rearranging molecules)
Treatment
2.1.1 Separation process Figure 2 as shown below explains the Exxon Mobil separation of crude oil thorough hot furnaces.
FRACTION
B Pt oC
Number of carbons
Uses
»Refinery gas
1-4
Bottled gas, fuels
»Petrol
40
~8
Fuel for cars
»Naphtha
110
~10
Raw material for chemicals and plastics.
»Kerosene
180
~15
Fuel for Airplanes
»Diesel
250
~20
Fuel for cars and lorries
»Oils
340
~35
Fuel for Power Stations, Lubricants and grease
Hot crude »
»Bitumen
400+
40+
Road surfacing.
Figure 2
Basically bottom column is hot and the top is cool
According to the weight and boiling point the crude will be separate into fractions
The process vaporize the lightest fraction to the top of the tower such as petrol and liquid petroleum gas (LPG)
Product form in the middle of the tower is kerosene (aviation fuel) and diesel oil
Heavier liquids separate drop down.
At the bottom of the tower says heaviest fraction with highest boiling point.
2.1.2 Conversion (catalytic cracking and rearranging molecule)
At this stage, heavier and lower value hydrocarbon molecules need to break apart using catalytic cracking process. To speed up the catalytic process, alumina-silicate used as catalyst at high temperature. Meanwhile to upgrade the hydrocarbon compounds other processes and technology play an important role such as catalytic reforming, alkylation, hydro treating, benzene saturation and alkali treating. In some cases, Exxon Mobil execute combination of heat and pressure to reduce molecules sizes. In the other hand to produce more valuable liquids the light gases need to be converted in to liquid through alkylation.
2.1.3Treatment Treatment is the touch up process where the final products will be improved to meet the specific requirement. Exxon Mobil refining process usually contents blending, purifying and fine-tuning their products. Exxon Mobil concerned on weather changes therefore they blend together a variety of hydrocarbons to produce petrol which suits the environment. For better understanding, extra volatile hydrocarbons (with short carbon chains) will be added during winter and reduced volatile hydrocarbons to balance for the higher temperature.
2.2 Refinery Operation Integrity Management System
Figure 3
In Exxon Mobil refinery operations, Exxon has implemented a standard operation procedure named Operation Integrity Management System. Figure 3 above shows that the 11 key elements that been a guidelines for the Exxon employee to follow on their daily basis. It's clearly states expectation regarding the standards and practices have to meet the design, construction and operation of the refinery. They also constructed an emergency response team and trained them regularly. Exxon refinery maintains permanent emergency control and communication area in case of emergency.
2.3 Conclusion
All the 37 refineries in 20 country using the similar refinery process and operation. Only difference was level of volatile hydrocarbon mixture differs depends on the weather. All the plant operates based on Operation Integrity Management System in order to set high safety and operating standards.
3.0 Risks lead to the oil spill disaster and pollution
Exxon Mobil is a world largest intergraded energy company should be aware of risk which possibly contribute a major failure in their operation and may lead to pollution especially when they dealing in the oil gases field. Since the Exxon Mobil grounded into prince William sounds, a study was conducted to identify the causes that lead to this disaster.
3.1 Poor Maintenance
Several maintenance factors such as failure of Raycas radar system, which capable to alert to the third mate an impending collision with the Bligh reef. This collision can be avoided by the help of radar system but it was turn off or disabled more than a year ago before the disaster. Exxon management refuse to replace this device since it was so expensive to fix and operate. In the other hand, Exxon Valdez use to sail across the iceberg and it highly recommended installing state-of-the-art iceberg monitoring equipment but the management just ignored the idea without considering the risk sailing through the bad weather ice berg sea. Another resource state before the tanker departure, a mandatory Coast guard tanker inspection was not done and number of staff was reduced. It's clearly illustrating the ignorance of maintenance lead to a severe disaster.
3.2 Poor workforce and skilled employee management.
Prior to Exxon Valdez incident, the vessel leaves the port with insufficient supply of trained crew members and numbers of crew reduced into half of 1977. The company failed to monitor the master hence resulted an unrested crew's was rushing to leaves Alyeska Pipeline at 9:12pm,Alaska standard time without carrying out a full complete inspection of the whole ship. Hence, one of the crew members unable to properly manuever the ship due to tiredness from over workload. [5] In the event the crew master who's Hazelwood said to be drunken and was under influence of alcohol unable to properly navigate directions to his crew. The management fails to train the entire crew on the discipline in workplace and proper training to run daily basis routines. The management made big mistakes by reducing the man power and results in delivering unsatisfied work output.
3.3 Conclusion
Factors such as human error, weather, failure of radar system and training could contribute to oil spill disaster when it is neglected in oil transportation system.
Consequences of all the hazards of the oil spill disaster.
The 11 million gallons of oil spill into Prince William Sound, oiling 1300miles of remote Alaskan coastline had contributed major hazards in environment, wild life, air pollution, economics, and the Exxon Mobil itself financially. Meanwhile Alaska's Exxon Valdez oil spill trustee council categorized the spill "is the number one spill worldwide in terms of damage to the environment ". [6]
4.1 Economic Impact
4.1.1 Recreational sport fishing loses.
During 1989 estimated loss were between $0 and $580million but the range changed to $3.6 to $50.5 million dollars at 1990. Impacts considered in terms of sport fishing trips, fishing area, and the trip length. [7]
4.1.2 Tourism Loses.
Number of resident and non-resident vacation/ pleasure visitors decreased in the spill affected areas due to shortage of available tourist services (accommodations, charter boats, and air taxis). [7] All the labour's move to high paid oil spill cleaning up jobs. 59% business activity cancelled and 16% was less than expected due to oil spill.
4.1.3 Replacement cost of birds and mammals.
In this case the relocation, replacement and rehabilitation for some of the shore birds, sea birds and the marine and terrestrial mammal which injured or suffered cost have been computed. [7] The cost ranges from $20000 to $300,000 dollars per marine mammal (sea otters, whales, sea lions, seal), $125 to $500 dollars per terrestrial animal (bears, rivet otters, mink deer) and $170 to $6000 dollars for seabirds and eagles. [7]
4.2 Environment
Once the oil spill occurred, scientist has studied the effects on shoreline's ecological recovery after environmental disaster. Their findings focused on the oil spill clean-up procedures and how the ecosystem responds to such disturbance. They discovered that attempts to clean up will be more severe than the oil itself, with effects when chemical and a physical method continues. [8] Penetration of the oil in to beaches possibly remains fresh for years and appears again on the surface and affects nearby animals. Fish embryos have population consequences through indirect effects on growth, deformities, and behaviour on reproduction when exposed to weathered oil.
4.3 Conclusion
Initiative should be taken to avoid contamination of the environment, ecosystem disturbance and economic impact when loading and unloading the vessel, and transporting oil via offshore.
5.0 Improvement and changes in management system.
Prior to Exxon Valdez oil spill disaster, Exxon Mobil doesn't seems to have a proper management system and not aware of the consequences of oil spill disaster. Since the disaster, Exxon Mobil learned a lesson and they had implemented all the necessary input in their management system to prevent the spill occurred again.
5.1 Deployment of Operation Integrity Management System
Exxon Mobil should deploy standard Operation Integrity Management System (OIMS) in their global operations in order to meet environmental, health, safety and security standards expectation. Through OIMS they can achieve ISO 140001 requirements. OIMS proved to be best practices for the uniform design, inspection, maintenance, and operation of plant equipment. [9] It also known as L&S Standards of Environmental Care (SCOE), thus this guidelines and procedures will maximize the integrity, and enhance the monitoring, of equipment's to help mitigate risks and minimize environmental impacts. [9]
5.2 Implementation of ISO 14001 ISO 14001 comprises a set of requirements for environmental management systems established by the International Organization of Standardization in 1996 - and updated in 2004 - whereby companies institute enterprise-wide systems that control the environmental aspects and impacts of their operations. [10] To improve the awareness on ISO 14001, a registered non-profit auditor specializing in ISO Standards should conduct quarterly audit to maintain Exxon Mobil on the ISO 14001 track.
5.3 More awareness in oil transportation system
Major improvements need to be done in order to avoid oil spill from happening again. Since the Exxon Valdez oil spill, U.S coast guards more alerted to monitor fully-laden tankers via satellite as they pass through the Valdez narrow, cruise by Bligh Island, and exit Prince William Sound. Exxon Management alerts the U.S coast guards by requiring two vessels escort each tanker while passing through the entire Sound. Highly trained marine pilot board the tankers from the new pilot station at Bligh Reef and is abroad the ship for 25 miles out of the 70-mile transit through the Sound. Safe navigation is firmly established regarding weather criteria. Considering the Exxon Valdez oil spill, double-hull tankers used due to the structure can reduce the amount of oil spill if happen.
5.4 Implement criteria that was miss in the Exxon Valdez spill. 5.4.1 Tankers routes have been modified for safety purpose due to the weather changes. 5.4.2 Instituted drug and alcohol testing programs for safety sensitive positions 5.4.3 Restricted safety-sensitive positions to employees with no history of substance abuse 5.4.4 Implemented more extensive periodic assessment of ExxonMobil vessels and facilities 5.4.5 Vessel captain and pilot training programs are strengthen 5.4.6 Exxon Mobil had updated vessel navigation technology and ensures the integrity of oil containment systems
5.4.7 Implementation of (OHSAS 18001:2007) Occupational Health and Safety Assessment Series for health and safety management systems.
5.5 Conclusion
Exxon Mobil should continuously improve the management system skills through auditing the criteria implemented.
Conclusion Exxon Valdez oil spill had made solid statement that when a risk consideration and management skills fails will contribute to a big disaster which will take long time to recover. Relative factors like poor maintenance, less skilled workforce, slow response and safety is a severe disaster contributor when neglected. Exxon Valdez spill has enhanced the global marine transportation affiliates to find and support innovative ways to exceed regulatory standards in safety, security, and reliability. These affiliates actively participate in the industry quality development, Tanker Management and Self-Assessment program to guide the ship operators meets the existing quality standards, and expanding the Ship Report Exchange (SIRE). SIRE program designed with high standards of common inspections used in inspection process and vessel screening.
REFFERENCES
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