Industrial fire protection loss limitation

Furthermore, although total removal of any one of the necessary conditions for a fire will absolutely prevent its occurrence, such stringent restrictions on industrial operations are seldom economically feasible. Industrial materials are, however, studied with a view to ascertaining just how much leeway there is, so that a compromise between absolute fire prevention and economy of operation may be reached. It is for this reason that, while we know how to prevent fires, they still do start, and why loss limitation is such an important part of industrial fire protection... 

In the beginnings of the petroleum industry, usually very limited safety features for fire or explosion protection were provided, as was evident by the many early blowouts and fires. The industry became known as a "risky" operation, not only for economic returns, but also for safety (loss of life and property destruction) and environmental impacts, although this was not well understood at the time. 

Normal loss prevention practices are to design protection systems for the worst case fire event that can occur at a facility (within the limits of probabilities). To interpret this literally would mean in some cases that an oil or gas facility is completely on fire or totally destroyed by an explosion. Practical, economic, and historical review considerations indicate this rationale should be redefined as the Worst Case Credible Event (WCCE) or as referenced in the insurance industry, the Probable Maximum Loss (PML), which could occur at the facility. 

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