The present-day configuration of industrialized civilization well recognizes the importance of petroleum for its sustenance and its role in the country’s economy. Constantly working in highly vulnerable environment, oil and gas companies have to endure high level of risks encompassing environmental, operational, health and safety, as well as organizational and human hazards. Risk assessment has significantly grown to prominence in petroleum industry with an intention to mitigate these hazards. This research provides deep insight about the application of hierarchical linear modelling, a widely accepted tool in the field of risk assessment. Consequently, the proposed multilevel risk analysis will have a comprehensive approach than any other risk estimation methods. The present research infers to managing the confronting risks by studying the arbitrary relationships between the hazards in multilevel hierarchical modelling. To ensure the safety of the whole system, a statistical model is developed that would have a probabilistic approach towards the minimization of the potential hazards in the industry, quantifying the risk associated with the activity process.
Hierarchical Linear Modelling, Oil and Gas Industry, Risk Assessment
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