A systems approach to managing oil transportation risk in Prince William Sound

The grounding of the Exxon Valdez caused public and government concern about the safety of oil transportation in the Prince William Sound, Alaska. As a result, a large number of proposals and recommendations were made to improve safety, but stakeholders could not achieve a consensus on their effectiveness at reducing risk. A steering committee representing all local stakeholders, including the Prince William Sound Shipping Companies, the Prince William Sound Regional Citizens Advisory Committee, the Alaska Department of Environmental Conservation, and the U.S. Coast Guard, was formed to address the issue of risk intervention effectiveness. The Steering Committee hired a team of consultants who were charged with assessing the current risk of accidents involving oil tankers operating in the Prince William Sound and evaluating measures aimed at reducing this risk. The team created a detailed model of the Prince William Sound oil transportation system, using system simulation, data analysis, and expert judgment, capable of answering the majority of the questions posed by the Steering Committee. The success of the project has been demonstrated by the acceptance of the major recommendations by all stakeholders and has, to date, resulted in multi-million dollar investments.