 
Perspective: Challenges of New Upstream Projects and Upstream Operations
Around the World
The economics of oil and gas exploration, production, and development (EPD) are solid; and the technology for operating in remote locations onshore and in deeper waters offshore have improved tremendously. Energy development and environmental protection can, in fact, coexist. Nevertheless, the industry still faces major challenges in balancing the favorable economics with urgent and unrelenting environmental and social scrutiny.
In supporting oil companies around the world, Battelle has found that with these new opportunities for the integrated oil and gas companies come added responsibilities, expectations, and requirements. The environmental dimension, along with the social and economic aspects, has taken on real, practical meaning for the oil industry. It is our experience that the application of sound science and technology to predicting, assessing and communicating the real environmental impacts of EPD activities offers a basis for protecting our clients’ assets and minimizing liabilities, while also differentiating them from their competitors.
Perceptions
There is little doubt that several dynamics in recent years have raised the bar for the industry in doing business domestically and internationally. These problems have proven that oil and gas companies share the same image worldwide, in spite of vastly different systems and histories of environmental management and performance. Oil spills, poor environmental histories, and perceptions of inadequate social considerations all provide blockages to even well managed, responsible, and technologically sophisticated operations. Opposition based on fears of potential major disasters have blocked offshore development in many locations. |
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Technology Transfer
Oil companies want to develop resources in countries around the world, yet the ability of local governments and academicians to influence the environmental aspects of these developments and to play a role in environmental protection is often limited by resources, knowledge, equipment, and infrastructure. By working with the industry in developing environmental impact assessments and environmental baseline data, Battelle scientists have found that transferring environmental science and marine monitoring technology is key to success. Oil companies along with their consultants can effect technology transfers, insuring sustainable development in the process. |
Monitoring in Deeper Waters
The industry is realizing the need for area-wide in addition to platform-specific monitoring in deeper waters, where studies need to incorporate specialized methods. The use of innovative approaches to benthic monitoring is needed to obtain useful data. Battelle has found that while individual platforms may have compliance discharge limits, groups of platforms can potentially have a cumulative affect. Therefore, the challenge is to develop monitoring systems to provide data on areas with multiple platforms. Battelle, in working with North Sea operators is doing just that. With our clients, we have developed efficient, yet technically defensible bioaccumulation and water quality monitoring systems. Sharing industry knowledge and exporting best practices from one geography to another has proven to be successful in meeting this challenge. |
Environmental Impact Assessments (EIAs)
EIAs are key to EPD approvals and navigating through varied expectations around the world. While a World Bank framework is the proper starting point, it needs to be modified substantially given the needs of country regulators and other stakeholders. Attention to local issues combined with content that provides for site-specific baseline conditions, defensible impact predictions, a thorough discussion of alternatives, a robust environmental management plan (EMP), and in many cases a thorough social impact assessment (SIA) are ingredients of a successful EIA. Battelle has found that an integrated project team, an experienced consultant, and a great deal of local content are keys to successful EIAs around the world. |
Operational Improvements
An example of obstacles to well-intentioned environmental improvement is evidenced in the case of the proposed use of synthetic based muds or drilling fluids (SBMs). These types of drilling aids are needed to successfully and safely drill deeper wells offshore. They have been formulated to minimize toxicity. Although SBMs have little chemical connection to older ‘oil-based muds’ a perceived linkage has slowed their acceptance in many cases. Battelle has focused on developing laboratory and field methods to determine the degradation rates and real effects of these SBM residues. We have also been involved in training and information exchanges to present scientific results. The challenge for industry is to tap into expertise in one country and apply it to situations elsewhere in the world, rather than beginning the process anew in each geography. |
Produced Waters
Battelle has assisted the industry with the characterization of oilfield produced waters and determination of the ecological risks related to their discharges. Though much is known about this topic, the chemical and radiological compositions vary worldwide. The challenges for industry include accuracy and credibility in both the characterization and the risk assessment combined with a willingness to apply engineering solutions to potential environmental problems. |
Combating Oil Spills
While the oil industry’s focus is on environmental stewardship and accident prevention, there have been enough oil spills worldwide to cause serious damage to reputations, the environment, and EPD plans. Beyond prevention, the challenge is to develop the response plans and infrastructure to assure the governments and communities that oil companies can handle cleanup if a spill occurs. Our work on contingency planning, actual spill response, and on spill drills and training has demonstrated the value in devoting resources to meeting this challenge. Expertise in advising on spills, the use of chemical dispersants, and most importantly in risk communications are keys to meeting this operational challenge. |
To be successful, the industry must address environmental, economic, and social aspects of developments in a holistic way drawing on a vast amount of knowledge and applying it to situations around the globe.
For more information, contact Dr. Paul Boehm at
(781) 895-4862, boehmp@battelle.org.
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