8 minute read
PESA REMOTE
KEEPING MEMBERS UP TO DATE
By Kevin Broom, PESA
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Bringing the OFS sector together and providing members with information, resources and training needed to grow and innovate is at the heart of PESA’s missions. When the pandemic made social distancing and remote work became the norm, PESA remained focused on the mission by hosting an array of webinars, online townhalls and virtual meetings.
Through PESA Remote Events, members have heard from experts inside and outside the OFS sector and received timely information on federal, state and local government orders, how to access government programs intended to help stabilize businesses during the downturn, and how to navigate impacts of COVID-19.
Key takeaways from PESA Remote Events conducted in recent weeks:
GLOBAL CRISIS BRIEFING
By Axios Reporter Amy Harder
• President Trump views the oil industry through a consumer lens, which means he sees low gas prices at the pump as a plus in the economic recovery. When the Middle East feels effects of the price war and supply glut, the region could see increased unrest and more terrorist activity.
• Declining greenhouse gas emissions are akin to losing weight because of an illness. Harder predicted emissions will increase globally in the pandemic’s aftermath.
• Climate change will take a back seat to economic recovery in the coming years.
MARKET OUTLOOK
By the Baker Institute’s Mark Finley
• Finley advised executives to monitor official pricing and real-time estimates of production and inventory data.
• As long as existing wells can cover operating costs, they’ll remain in production.
• U.S. shale producers are under increased financial and productivity pressure due to cost of extraction and debt.
IMPACTS OF SAUDI PRICE WAR AND THE CORONAVIRUS SHUTDOWN
By King and Spalding
• A key indicator to watch for is refineries declining new crude oil deliveries. That will have a bigger impact on the supply chain than WTI price.
• The current economic downturn is caused by a demand shock (not a liquidity crisis as was the case in 2008) and calls for a different response from the federal government. The largest stimulus package in U.S. history was a good first step from lawmakers.
Companies should immediately review force majeure clauses in their contracts. Because the financial crisis and falling oil prices may not meet the requirements for triggering force majeure clauses, companies should consider how performance could be altered to comply with COVID-19 orders and keep the contract in effect.
• Companies have many restructuring options ranging from delaying payments, to strategic mergers and acquisitions to filing for reorganization. The earlier companies begin the process, the more options they have.
SUPPLY CHAIN
• The PESA Supply Chain Committee shared best practices for supply chain mapping and how to use that resource to communicate internally and externally to manage around regional effects of the pandemic.
• Attendees discussed how they’re implementing remote work options and managing worker health and safety when reporting to company facilities is required. Practices include multiple teams with no overlapping members, stringent adherence to distancing and protective guidelines, and use of remote communications tools.
HUMAN RESOURCES
• HR departments are facing unprecedented challenges due to the pandemic. PESA’s HR Committee addressed stay-at-home orders, leave, work exemptions and market challenges.
• Many companies have been forced to implement layoffs and furloughs.
• Connectivity is a difficulty companies are facing. Some have added licenses to strengthen services, but several are challenged by employees working from rural areas. The only option in those cases has been for employees in rural locations to call in for meetings.
• Companies are keeping in place remote work and rotation scheduling strategies. For essential staff that cannot work from home, companies are meeting and surpassing CDC guidelines for cleaning and sanitation. In addition, facilities are performing temperature checks, maintaining enhanced social distancing and establishing staggered work shifts to reduce employee interactions.
• Most companies are prohibiting external visitors at facilities and requiring face masks for those entering. Many HSE departments are determining procurement needs to supply the PPE and are re-tasking 3-D printers to make the necessary equipment.
• Companies are covering 100% of the cost for virus testing.
HEALTH & SAFETY
• PESA Health and Safety Committee members shared HSEQ programs, processes and procedures. Companies are setting up emergency response teams to handle contingency planning and responses to COVID-19 to allow frontline employees to focus on operations.
• Companies are using digital questionnaires and temperature checks to screen employees for the virus before each shift.
• Companies have taken an array of steps to protect workers, including restricting international travel, limiting domestic travel to one person per vehicle, rotational schedules and complying with CDC facemask recommendations.
• Open communication with employees is critical. Companies are using video podcasts, email and newsletters to keep employees up to date and to reassure them their health and safety are a top priority.
LEADERSHIP
• The Envision Group led a discussion on best practices for leading through adversity.
• Keys include: communication with employees – including video calls, follow-through on commitments, and maintaining physical and emotional health.
• Leaders should identify team members who handle stressful situations well and put them in positions to help fellow employees and have input to help make good decisions.
• Verify data when making a decision to avoid mistakes.
• Tailor messaging to different stakeholders.
LEGAL
• Companies need to implement an array of best practices to avoid potential legal issues related to COVID-19.
• Among these: have employees work from home when possible. Conduct health screenings before essential employees enter company facilities. Increase cleaning requirements and make proper PPE available to workers.
• Exemption letters for essential workers should be from the employee’s supervisor, should include that person’s contact information and should include the employee ID number that matches their physical ID.
• Establish and maintain a crisis management team.
• Establish policies and procedures for employees to follow if a co-worker tests positive. Consider what steps the company will take if the pandemic (or another crisis) lasts for months or years.
• Pandemic language must be included in force majeure clauses going forward. Force majeure clauses should be specific about what events may trigger the clause.
• Project managers and key employees should receive crisis management training.
These are some of the key takeaways from PESA Remote Events since the pandemic disrupted how we work and live. To stay up to date on resources to navigate the COVID-19 pandemic or to join future PESA Remote Events, visit PESA.org.
PESA’s HSEQ Task Force has identified these best practices during the pandemic.
SOCIAL DISTANCING PROTOCOLS
• Implement a controls questionnaire to assess personal health and travel history
• Implement rig site checklists into company standards/requirements and have open dialogue with customers
• Stagger shifts to reduce traffic coming in and out at one time
• Provide field crew workers with screening questions for customers regarding controls in place to manage social distancing, safety meetings, hygiene precautions, quarantine areas, etc.
• Utilize infrared thermometers to take temperatures
• Follow CDC guidelines regarding masks. When availability is short, employees should secure or make their own following instructions from the CDC
• Install partitions and/or sneeze guards in manufacturing facilities
• Ensure social distancing can be observed in cafeterias – purchase tables for outside dining or additional seating areas
DECONTAMINATION
• Increase cleaning protocols
• Decontaminate service vehicles between shifts
• Wash laundry at warmest settings following CDC guidelines
• Do not share PPE, regularly clean face shields/hard hats
• Add list of vendors/waste disposal companies who can provide cleaning services to emergency response plan
QUARANTINE WELLNESS ASSESSMENT
• Implement wellness check questionnaires and temperature checks
• Maintain data privacy controls, adhere to corporate compliance
• Refer employees reporting COVID-19 symptoms to personal physician
• Return to work: When employees return to work after having been symptomatic, they should meet 3 criteria based on CDC recommendations:
o 72-hour fever free without medication
o Improvement in respiratory symptoms (e.g., cough, shortness of breath)
o At least 7 days have passed since symptoms first appeared
REMOTE WORKER TRAVEL
• Discontinue international travel
• Limit one employee per vehicle for domestic travel
• Travel between states: Carry essential worker documentation
• Be aware of longer rotations and the health, safety and psychological effects
• Hot shot drivers: should remain in their vehicles and not enter facilities
• Hotel Stays o Employees having to stay at hotels employees should be prepared to sanitize rooms and request clean linens from the front desk
• Create internal COVID-19 websites
• Internal with company leadership to share what the organization is doing to keep employees safe and maintain business continuity
• Provide FAQs for all employees, specific FAQs for managers, as well as customer-facing service groups
• Daily newsletters providing information COVID-19, as well as how to cope with “new normal” stress, working remotely, home schooling, managing time, not being able to socialize
• Communicate often with customers
MOBILE MEDICAL MANAGEMENT
• Utilize medical management solutions to: o Assist in company plans o Provide recommendations around quarantine o Locate doctors in the immediate area o Get tests done with results back quickly
RESPONSE PLANNING
• Streamline through Human Resources to ensure confidentiality
• Bring completed preparedness plan to job sites reflecting local/regional HR and HSE contact information • Global status updates funneled through HR
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