Environmental Report 1998 Index

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Environmental issues facing the oil industry The offshore oil industry works in a harsh environment with facilities that are a combination of a factory, hotel and offshore island. This makes it more difficult to address issues on an individual basis as there is a need to balance factors such as safety, employment, the environment and the sustainability of the industry. However, in all of this the industry seeks to ensure that it has an open dialogue with its regulators and with the community at large. The Atlantic Margin and the future of the UK Oil Industry Since the 1970s UK offshore oil and gas operations have been a source of significant income to the United Kingdom, oil companies and their shareholders. These same operations have also been a source of jobs and national revenue; the UK oil and gas industry currently employs, directly or indirectly, some 380,000 people in the UK and accounts for nearly 20% of the nation's total industrial investment (Ref. 3). The North Sea is now viewed as a 'mature' oil and gas province. New fields will continue to be found but not of the same size nor at the same rate as in the past. If economic and employment benefits are to be sustained, then the industry must be allowed to look for oil and gas in new areas, provided that it can demonstrate that its operations are safe and managed with due care for the environment. The Atlantic Margin, an area to the North and West of mainland Britain, is a potential new opportunity for the industry. Not only is there the immediate prospect of maintaining UK jobs and Treasury revenues, but the Atlantic Margin presents an exciting opportunity to develop new technologies. By overcoming the challenges here, a number of UK based companies will be in a strong position to pursue export opportunities in deep water areas around the world such as West Africa, and the Gulf of Mexico. But all this industry activity needs to be carried out in the context of careful environmental management. Care must be taken as the oil industry moves into a relatively new area. The industry has recognised this by jointly funding a £2.2m research programme to fully assess the environment of the deep water. Research is also being funded by NERC (the Natural Environment Research Council), the Engineering and Physical Sciences Research Council, the DTI (Department of Trade and Industry), and a consortium of oil companies. Without doubt the waters of the Atlantic Margin are rich in wildlife and these deep water habitats are of great significance but these need to be seen in context. The Atlantic Margin is of importance to industries such as shell and fin fisheries and the area is subject to relatively significant shipping traffic to and from Europe. We fully accept the need to protect the Atlantic Margin just as we need, and endeavour, to protect the environment of all areas of the UK Continental Shelf in which we operate. Climate Change Climate change is an important issue for global society. It is an issue that has potentially very far reaching consequences for the oil and gas industry. It is also an issue on which there remains a diversity of view. Inevitably, climate change concerns have moved to centre stage over the last year, largely as a consequence of the third conference of parties to the UNFCCC (UN Framework Convention on Climate Change), held in Kyoto in December 1997. The Kyoto Conference and the protocol agreed at the eleventh hour, is a significant milestone. The protocol covers six greenhouse gases and imposes controls on emissions from the developed world economies relative to their emission levels for 1990 for carbon dioxide, methane and nitrous oxide, and relative to levels in 1995 for three other gases (HFC, PFC and SF6). In the period 2008-2012, the European Union is to reduce emissions by 8%, this target has been shared amongst member states and the UK has accepted a 12.5% target. The UK government has also committed, on a best endeavours basis, to aim for a 20% reduction in CO2 emissions from 1990 levels by 2010. UKOOA companies are committed to policies which seek to reduce environmental inputs and are active in continuing to seek energy efficiency steps. Member companies also plan to share best practice, and to make a concerted move towards improved management of emissions from flaring - one of the more significant oil and gas related offshore sources of greenhouse gas emissions. For this reason, UKOOA has specifically included a review of flaring in this report. At a national level, new policies and measures can be expected to enable the Government to meet greenhouse gas reduction targets. It will be important for the oil and gas industry to be involved in this debate in a constructive way to ensure the industry can still deliver the energy needs of the United Kingdom Decommissioning of Offshore Platforms. The decommissioning issue, which gained profile from the public and political outcry over the planned decommissioning of Brent Spar in the middle of 1995, continues to occupy the attention of regulators, politicians, environmental organisations, the media, and the public. It remains a critical issue for the oil and gas industry. From an oil company standpoint, the process of decommissioning has a number of distinct stages. First, decommissioning options are developed and put through a detailed planning process, which includes engineering, safety, economic and environmental assessments. The options are discussed with relevant government departments and other interested parties, and a choice is made. The operator then has to stop production of oil and gas, plug the oil wells deep below the surface and make them safe. Next, all or part of the installation is removed from the site according to an approved decommissioning plan. Lastly, those elements which are removed have to be re-used, recycled, or disposed of. In choosing options for decommissioning, an oil company must take into account the extensive international regulatory guidelines which exist under the auspices of the IMO (International Maritime Organisation) and OSPAR (the Oslo and Paris Commission), both internationally responsible for the protection of the marine environment, as well as UK legislation. The toppling of installations in situ has been banned as has the remote dumping of installations at sea. Under international guidelines, all new installations and existing installations weighing under 10,000 tonnes have to be removed to shore. This encompasses the vast majority of installations. The remaining 34 installations comprising concrete and large steel structures will be subject to a case by case review. For the large steel structures, the above sea decks processing equipment, accommodation facilities and other 'topsides' will be taken to shore for recycling and re-use. It is primarily the footings or support structure of the platform, where choices for disposal will be available provided they do not cause a hazard to other users of the sea. These will normally contain no oil or other residues and thus represent little environmental impact. The choices will be influenced by a number of factors such as type of construction of the support structure, its size, distance from the shore, weather conditions, environmental considerations, public concerns, and costs of the various options. A major influence will be the safety of those involved in the decommissioning of these large structures. When assessing the environmental impact of any particular option, consideration must be given to a wide range of factors in addition to the immediate effects on the local marine environment. What is the potential for pollution of land and air due to onshore disposal? What is the environmental impact of transportation during dismantling operations? How much energy will be used, and how much carbon dioxide released for each abandonment option?