safety is our foundationAt Marathon Oil, we believe that everyone deserves a safe workplace. Given our role in the exploration and production of oil and gas, we also recognize that safety plays a critical role in mitigating risk within our company and the communities where we operate.
Safety directly impacts our ability to maintain the trust of our stakeholders. We use a number of systems to integrate a culture of safety throughout the exploration and production lifecycle. Although Marathon Oil aims to be a low-cost, high-margin operator, we recognize that taking the time to run our business properly and safely is more important than doing it quickly. Without safety and operational excellence, the sustainability of our company is compromised.
We maintain our culture of safety and health by attracting, developing and retaining individuals and partners who share our commitment to operational excellence. We build relationships with our large contractor workforce and work together toward our goal of achieving a workplace free of fatalities and injuries, without fires, spills or explosions that can affect our people or our communities. Our values to collaborate, take ownership, be bold and deliver results enable Marathon Oil to excel, but that’s only possible if our workforce is safe.
Prioritizing Safety is Fundamental to Responsible Corporate Stewardship
We believe a tone of safety and operational integrity is established at the top and must be reinforced at every level.
Marathon Oil’s HES and security (HES&S) performance is managed by the Responsible Operations Management System (ROMS), which includes HES&S Standards & Procedures, Life Critical Expectations & HES Beliefs. Safety risks and mitigations are identified and assessed as part of ROMS. We train and engage our workforce to reinforce safety leadership and provide resources such as online Safety Data Sheets (SDS) to ensure product stewardship and safe handling. In 2018, employees recorded approximately 55,000 hours of HES training in our Learning Management System (LMS). Training for designated contractors who perform safety-sensitive work on our locations totaled approximately 19,500 hours in 2018. Once they’ve received training, employees and contractors are expected to take responsibility for their own safety and the safety of people working around them.
The executive vice president of operations, who reports to the CEO, has overall leadership accountability for our safety performance, with oversight from the HES and Corporate Responsibility (HES&CR) Committee of the board of directors. In addition, seven of our eight directors bring experience in, or a strong understanding of, HES issues to their board oversight role. We incorporate key enterprise-wide safety metrics in our annual incentive plan formula.
To further manage safety risks and avoid incidents, injuries and accidents in 2018, we:
- Continued our safety leadership program, stronger contractor management and consistent implementation of safety policies and practices across our operations. The result was a decline in our Total Recordable Incident Rate (TRIR) for employees and contractors combined to 0.53 in 2018 compared to 0.64 in 2017.
- Implemented an HES/operations action plan to improve safety in our New Mexico Permian Basin asset. Actions included a construction stand-down, monthly meetings with construction crews, a safety forum, safety leadership training classes, focused contractor audits and a drilling and completions vendor summit.
- Held a full-day safety stand-down in the North Dakota Bakken asset to communicate the importance of slowing down, asking questions and exercising Stop Work Authority.
- Updated our Life Critical Expectations & HES Beliefs to ensure alignment with industry accepted practices and our current business risk. Enterprise-wide rollout to our workforce on these refreshed expectations and beliefs began in March 2019, with all personnel being responsible for completing awareness training on this material.
- Updated our Life Critical Standards, Procedures and Field Reference Guides to ensure consistency across all assets and for easier implementation in the field.
- Continued the proactive review of all Marathon Oil properties we started in 2017 using LIDAR (light detection and ranging) technology to detect structures within 1,500 feet of a well or well pad and 660 feet of a pipeline. By year-end 2018, we had identified almost 6,200 structures and our operations staff was determining if they require proper isolation, abandonment or other actions to improve safety. We plan to review the data annually to identify any new structures on our properties.
- Held annual field-level emergency response exercises required by regulations, regional drills required by ROMS and a corporate-level exercise.
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