Oil and Gas Infrastructure
May 02, 2007
"For our new Petroleum Systems Integrity Office (PSIO) to do an effective job, it must have access to comprehensive, thorough, and objective assessment data to tell us the status of the infrastructure and what it should be," said Governor Sarah Palin. "No such system-wide risk assessment has ever been conducted of this complex system."
Alaska's oil and gas infrastructure comprises a complex, integrated system. Over the years, new parts have been added and older parts have been modernized. Changes have been made to increase efficiency and production, to improve integrity, and to adapt to changes in field characteristics. At the same time, there have been advancements in oil and gas science and technology. The current state of the infrastructure is a result of the combined effects of age, change, industry operations, and government oversight.
"Good management requires that we understand the current state of the infrastructure," said Department of Environmental Conservation Commissioner Larry Hartig. "We need to know what's in good shape, what's not, and where and how serious the risks are. A risk assessment is a structured process designed to answer those sorts of questions."
Department of Natural Resources Commissioner Tom Irwin said, "I am pleased with the Governor's extraordinary vision in ordering the comprehensive risk assessment. The assessment will provide a firm foundation for PSIO's work. This is a critical step in facilitating the protection not only of our environment, but of our economy."
The risk assessment is anticipated to take from two to three years to complete. The Administration has included a one-time capital budget request of five million dollars to pay for the effort.
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