Synergies among safety and security in the prevention of major accidents related to dangerous substances

Historical evidence shows that chemical, process, and Oil&Gas facilities where dangerous substances are stored or handled are target of deliberate malicious attacks (security attacks) aiming at interfering with normal operations. Physical attacks and cyber-attacks may generate events with consequences on people, property, and the surrounding environment that are comparable to those of major accidents caused by safety-related causes. The security aspects of these facilities are commonly addressed using Security Vulnerability/Risk Assessment (SVA/SRA) methodologies. Most of these methodologies are semi-quantitative and non-systematic approaches that strongly rely on expert judgment, leading to security assessments that are not reproducible. Moreover, they do not consider the synergies with the safety domain. The present 3-year research is aimed at filling the gap outlined by providing knowledge on security attacks, as well as rigorous and systematic methods supporting existing SVA/SRA studies suitable for the chemical, process, and Oil&Gas industry. The different nature of cyber and physical attacks resulted in the development of different methods for the two domains. The first part of the research was devoted to the development and statistical analysis of security databases that allowed to develop new knowledge and lessons learnt on security threats. Based on the obtained background, a Bow-Tie based procedure and two reverse-HazOp based methodologies were developed as hazard identification approaches for physical and cyber threats respectively. To support the quantitative estimation of the security risk, a quantitative procedure based on the Bayesian Network was developed allowing to calculate the probability of success of physical security attacks. All the developed methods have been applied to case studies addressing chemical, process and Oil&Gas facilities (offshore and onshore) proving the quality of the results that can be achieved in improving site security. Furthermore, the outcomes achieved allow to step forward in developing synergies and promoting integration among safety and security management.

Essays on risk-taking in corporate finance

This thesis consists of three independent essays on risk-taking in corporate finance. The first essay explores how community-level social capital (CSC), framed as a cultural characteristic of individuals born in different provinces of Italy, affects investment behavior in equity crowdfunding. Results show that investors born in high-CSC provinces invest more money in ventures characterized by an enhanced risk profile. Observed risk-taking is theoretically linked to higher generalized trust endowed to people born in high-CSC areas. The second essay focuses on how convexity of Chief Financial Officers’ stock options affects their hedging decisions in the oil and gas industry. Highly convex CFOs hedge less commodity price risk, even if the Chief Executive Officer’s incentives are consistent with a more conservative hedging strategy. Finally, the third essay is a systematic literature review on how different sources of compensation-based risk-taking incentives of Chief Executive Officers affect decision-making in corporate finance.

Attenuation of thermal radiation from flare through water curtains on offshore platform.

Flaring has been widely used in the upstream operation of the oil and gas industry, both onshore and offshore. It is considered a safe and reliable way to protect assets from overpressure and the environment from toxic gas using combustion. However, there are drawbacks to using flares, such as vibration and thermal radiation. Excessive contact with thermal radiation is harmful to offshore personnel and equipment. Research organizations and companies have invested time and money to combat this. Many technologies have been developed so far to reduce the risk of thermal radiation, one of them being the water curtain system. Several tests were done to see the effectiveness of the water curtain system in mitigating thermal radiation in an offshore environment. Each test varied in the flare output, wind speed, and the size of water droplets size of the water curtain. Later, the results of each test were compared and analyzed. The results showed that a water curtain system could be a solution to excessive thermal radiation that comes from an offshore flare. Moreover, the water curtain with smaller water droplets diameter gives a more favorable result in reducing thermal radiation. These results suggest that, although it offers simplicity and efficiency, designing an efficient water curtain system requires deep study. Various conditions, such as wind speed, flare intensity, and the size of the water droplets, plays a vital role in the effectiveness of the water curtain system in attenuating thermal radiation.

The Possibility of Greenhouse Gas Mitigation in Ethiopian Cement Industry

Cement industry significantly associated with high greenhouse gas (GHG) emissions. Considering the environmental impact, particularly global warming potential, it is important to reduce these emissions to air. The aim of the study is to investigate the mitigation possibility of GHG emissions in Ethiopian cement industry. Life cycle assessment (LCA) method used to identify and quantify GHG emissions during one ton of ordinary portland cement (OPC) production. Three mitigation scenarios: alternative fuel use, clinker substitution and thermal energy efficiency were applied on a representative gate-to-gate flow model developed with GaBi 6 software. The results of the study indicate that clinker substitution and alternative fuel use play a great role for GHG emissions mitigation with affordable cost. Applying most energy efficient kiln technology, which in turn reduces the amount of thermal energy use, has the least GHG emissions reduction intensity and high implementation cost comparing to the other scenarios. It was found that the cumulative GHG emissions mitigation potential along with other selected mitigation scenarios can be at least 48.9% per ton of cement production.

Potential for synthetic gas in Finnish industry

Finland, other Nordic countries and European Union aim to decarbonize their energy production by 2050. Decarbonization requires large scale implementation of non-emission energy sources, i.e. renewable energy and nuclear power. Stochastic renewable energy sources present a challenge to balance the supply and demand for energy. Energy storages, non-emissions fuels in mobility and industrial processes are required whenever electrification is not possible. Neo-Carbon project studies the decarbonizing the energy production and the role of synthetic gas in it. This thesis studies the industrial processes in steel production, oil refining, cement manufacturing and glass manufacturing, where natural gas is already used or fuel switch to SNG is possible. The technical potential for fuel switching is assessed, and economic potential is necessary after this. All studied processes have potential for fuel switching, but total decarbonization of steel production, oil refining requires implementation of other zero-emission technologies.

Are real options a real option for real-world finance professionals? case study : the application of real options to evaluate investment projects in the latin american oil and gas field services industry

Brasil e outros mercados emergentes continuarão a apresentar muitas oportunidades de investimento nos próximos anos. Profissionais financeiros que gerenciam os processos de orçamento de capital nas empresas terão grandes desafios a enfrentar. Características específicas destes projetos como preços ligados a commodities (por exemplo: petróleo e gás e projetos agrícolas) e as incertezas habituais relacionadas com os mercados emergentes são desafios adicionais. Neste cenário, ferramentas mais sofisticadas de orçamento de capital como Opções Reais, oferece uma teoria mais robusta para lidar com incerteza, flexibilidade gerencial, e os resultados voláteis embutidas nestas oportunidades. A teoria de Opções Reais assume que o envolvimento dos gestores nos projetos gera valor à medida que potencializam os bons resultados ou reduzem as perdas por abandonar projetos com maus resultados. O objetivo principal desta pesquisa foi aplicar a análise de Opções Reais para um projeto de investimento e discutir o processo e os resultados da metodologia. O estudo de caso analisa retroativamente um projeto de investimento na Colômbia e compara os resultados sob o tradicional VPL e Opções Reais. As técnicas de avaliação foram realizadas como se estivessem sendo aplicadas no momento em que o projeto foi aprovado, e depois comparadas com o desempenho real do projeto. O estudo de caso avaliado possui dois tipos de Opções Reais: primeiro, o efeito de uma opção para cancelar um contrato que é analisado a partir da perspectiva do cliente que pode exercer essa opção, e o segundo, a opção de abandonar e adiar a partir da perspectiva da empresa que irá executar a investimento.

Comprehensive Greenhouse Gas Management for the Electric Generating Industry

Climate change is becoming more visible in the political arena. Electric generating companies will likely be impacted by future regulation of climate change related emissions. Even though few climate related programs are mandatory, electric generating companies should begin to implement greenhouse gas management systems. This report includes a review of issues facing the electric generating industry, an examination of current emission management programs, and recommendations for an effective greenhouse gas management framework. An effective greenhouse gas management program allows a company to continually improve their impact on climate change by reducing emissions using the plan, do, check, act process. To ease the reporting burden, companies should apply de minimis exemptions to sources that produce less than 5% of emissions.