Safety Performance Metrics in the Oil and Gas Industry

Ensuring workplace safety is paramount in the oil and gas industry, especially within regions like the Bakken Basin. Traditionally, companies have relied on the Total Recordable Incident Rate (TRIR) to assess safety performance as the primary metric. TRIR includes all work-related incidents requiring medical treatment beyond first aid, including injuries and illnesses.

However, for smaller companies (fewer than 100 employees), TRIR can be misleading, as a single incident can dramatically inflate the rate due to limited workforce hours and make the small company appear riskier than they truly are.

In this post, we’ll break down why TRIR is flawed, explore how small companies can secure temporary variances from clients or demonstrate their safety culture, compare risks across Upstream, Midstream, and Downstream operations and discuss leading indicators that safety professionals can use to predict and prevent incidents—instead of just reacting to them.

Understanding Safety Performance Metrics (Indicators)

Safety Performance Metrics are categorized into three primary Indicators:

1. Lagging Indicators: These metrics reflect past incidents and provide data on events that have already occurred.

2. Monitoring Indicators: These track ongoing safety trends, offering insights into current safety performance.

3. Leading Indicators: Proactive measures that aim to predict and prevent future incidents by assessing the effectiveness of safety programs and practices.

   
   

While lagging and monitoring indicators are useful, leading indicators are superior because they drive continuous improvement and proactive risk reduction.

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Lagging Indicators (Reactive)

Lagging indicators offer a retrospective view of safety performance by quantifying incidents that have occurred. Key metrics include:

1. Total Recordable Incident Rate (TRIR)

Definition: TRIR measures the number of OSHA-recordable incidents per 100 full-time employees in a given time frame.

Formula:

• 200,000: Standard base representing 100 employees working 40 hours per week for 50 weeks.

2. Days Away, Restricted, or Transferred (DART) Rate

Definition: DART rate quantifies incidents resulting in employees missing work, being restricted in their duties, or transferred to another job role. Provides a clearer picture of workplace safety trends.

Formula:

3. Lost Time Incident Rate (LTIR)

Definition: LTIR focuses on incidents where employees are unable to work due to work-related injuries or illnesses. Excludes incidents where employees return to work quickly. More meaningful for smaller companies with limited workforce hours.

Formula:

4. Severity-Based Incident Rate (SBIR)

Definition: SBIR assigns a weight to incidents based on severity rather than treating all recordables equally. This means a minor cut requiring stitches and a major injury leading to lost time don’t get the same weight in the metric, offering a more realistic picture of workplace risk.

Formula:

• Total Severity Points: Sum of points assigned to incidents based on severity criteria.

5. Experience Modification Rate (EMR)

• Definition: EMR is a workers' compensation insurance metric used to assess risk levels by comparing a company’s claim history against industry standards.

• Formula: EMR is calculated by insurance providers using claims data over the past three years vs. industry average.

• Benchmark:

• EMR = 1.0 → Average risk

• EMR < 1.0 → Better than industry standard

• EMR > 1.0 → Higher-than-average risk

• Usage: Companies with low EMR scores can use this as an alternative safety metric when TRIR is too high due to low employee numbers.

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Monitoring Indicators (Transitional)

Monitoring indicators track ongoing safety performance but do not predict future incidents. These are useful for spotting trends and identifying areas of concern before they escalate. These indicators help monitor safety efforts in real-time, bridging the gap between leading indicators (proactive measures) and lagging indicators (incident outcomes). These include:

1. Near Miss Reporting Rate

• Definition: Helps identify potential hazards before they lead to actual incidents.

• Formula:

2. Safety Audit Findings and Closure Rate

• Definition: Helps identify potential hazards before they lead to actual incidents. Identifies safety violations before incidents occur. Tracks how quickly and effectively safety concerns identified in audits are resolved.

• Formula:

3. PSI (Potentially Serious Incidents) Tracking

• Definition: Monitors incidents that could have caused serious harm. Helps prioritize intervention of critical risks before they escalate.

• Formula:

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Leading Indicators (Proactive)

Leading indicators predict and prevent incidents before they happen. These are the gold standard for HSE professionals because they focus on proactive safety efforts. Examples include:

1. Behavior-Based Safety Observations (BBSO) Per Employee

• Definition: Measures how frequently employees proactively report safety hazards or behaviors. Companies that track and act on observations reduce risks before incidents happen.

• Formula:

2. Training Completion Rate

• Definition: Measures workforce competency and engagement in safety programs. Ensures employees are well-equipped to handle hazards and are educated on risks.

• Formula:

3. Corrective Action Closure Rate

• Definition: Measures the effectiveness of hazard mitigation and safety improvements. Tracks how quickly companies fix identified hazards.

• Formula:

4. Job Safety Analysis (JSA) Completion Rate

• Definition: Ensures hazard assessments are completed before work begins which increases worksite control.

• Formula:

5. PPE Compliance Rate

• Definition: Ensures that workers consistently use personal protective equipment.

• Formula:

By shifting focus from reactive (lagging) to proactive (leading) indicators, small companies can prove their commitment to safety beyond just TRIR numbers.

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How Small Companies Can Secure Variances from Clients Using Alternative Superior Metrics

Large clients often require low TRIR as a condition for contracts. However, small companies with fewer than 100 employees can struggle due to statistical disadvantages.

Solution: Use Alternative Safety Metrics

If TRIR is high but safety is strong:

• Present SBIR to demonstrate lower severity rates, preventing minor injuries from inflating the metric. Then use DART and LTIR to show the measurement of true impact of injuries on operations and puts the focus on serious injuries affecting productivity.

• Provide EMR scores if they are below 1.0. It is Insurance-based proof of sustained safe operations and reflects long-term safety performance.

• Highlight monitoring and leading indicators like Near Miss Reporting Rate, Job Safety Analysis (JSA) Competion Rate and Safety Training Completion Rates which directly correlates with fewer incidents through proactive hazard mitigation.

For clients requiring safety performance data:

• Showcase Corrective Action Closure Rates to prove active risk management.

• Present Safety Observation Rates to show a strong safety culture where employee engagement is proactive in hazard detection.

• Submit a Safety Performance Plan detailing why your company is safe, despite a temporarily high TRIR.

By taking a data-driven approach, small businesses can demonstrate they are just as safe as larger companies, if not safer—despite having fewer work hours to normalize TRIR.

Example Client Appeal

"While our TRIR appears high due to our smaller workforce, our SBIR demonstrates that we effectively mitigate severe incidents. Additionally, our EMR of 0.85 indicates that we are safer than the industry average. We actively track and close safety hazards, as shown in our 95% Corrective Action Closure Rate. These proactive measures make us a safe, reliable contractor."

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Comparing Risk Levels: Upstream vs. Midstream vs. Downstream

The oil and gas industry consists of three main sectors, each with varying levels of risk:

Understanding the nuances of TRIR across Upstream, Midstream, and Downstream activities is essential for implementing targeted safety interventions. Companies operating in the Bakken Basin and beyond can benefit from:

• Comprehensive Training Programs: Ensuring that all employees are well-versed in safety protocols specific to their operational activities.

• Regular Safety Audits: Conducting frequent inspections and assessments to identify potential hazards and rectify them promptly.

• Investment in Safety Technology: Utilizing advanced monitoring and protective equipment to mitigate risks effectively.

• Cultivating a Safety-First Culture: Encouraging open communication about safety concerns and fostering an environment where safety is prioritized at all organizational levels.

By focusing on these areas, companies can work towards reducing their TRIR, ensuring a safer working environment for all employees, and maintaining operational excellence in the energy sector.

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Final Thoughts: Moving Beyond TRIR

While TRIR remains the industry standard, it does not tell the full story, especially for smaller companies. By shifting towards monitoring and leading indicators, HSE professionals can:

✅ Provide a more accurate safety picture

✅ Secure variances with clients despite high TRIR

✅ Proactively prevent incidents rather than react to them

HSE professionals play a critical role in educating clients and regulatory bodies on the limitations of TRIR and advocating for a more comprehensive evaluation of workplace safety. By embracing better safety metrics, smaller Contractor companies in the Bakken Basin can prove their commitment to safety and remain competitive in the oil and gas industry. Whether you're an experienced safety professional or just starting in the field, staying informed about leading, monitoring, and lagging indicators can help you build a safer work environment, gain client trust, and maintain compliance.

⁉️ What are your thoughts? Do you use alternative safety metrics in your company? Drop a comment below!

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