Presentation on theme: "Block 5: Sustainability Commitment"— Presentation transcript:
1Block 5: Sustainability Commitment Forum 22: Managing water in upstream and downstream operationsNew tools address water risks and enhance environmental and operational performance in the oil and gas sectorMr. Karl FennesseySenior ConsultantConocoPhillips, USAMs. Claire Rosalynde Gough, Talisman Energy, CanadaMs. Ruth Romer, IPIECA, United Kingdom
2Forum 22: Managing water in upstream and downstream operations New tools address water risks and enhance environmental and operational performance in oil and gas sectorWater, particularly fresh water, is a scarce resource in many parts of world. As fresh water has many uses in the upstream and downstream operations of oil and gas companies; incorporating fresh water management into strategic oil and gas processes is an integral part of:social and environmental responsibility;managing water-related business risks, andimproving operational efficiency.IPIECA has been engaged in the issue of fresh water for the last decade. This poster session provides an overview of ongoing IPIECA water initiatives and activities that include:IPIECA’s customization of the World Business Council for Sustainable Development (WBCSD) Global Water Tool (GWT) for the oil and gas industry. This free and publically-available tool helps companies organize water data, report using consistent water metrics and terminology, and identify and plan for current and potential future risks.A new overview of freshwater issues for the oil and gas industry highlights fresh water issues for the oil and gas industry and the business case for water risk identification and action.A best practice document, Petroleum refining waste / wastewater use and management, which describes good practices and strategies used in petroleum refineries to manage water.Recently updated Oil and gas industry guidance on voluntary sustainability reporting based on five reporting principles; relevance, transparency, consistency, completeness and accuracy. This Guidance sets out industry guidelines on reporting including a new fresh water indicator (E6).A planned water management guide will highlight industry good practice for fresh water management in upstream operations.IPIECA’s suite of tools, guidance and publications are valuable additions to company portfolios. They enable the oil and gas industry to effectively address water risks and enhance environmental and operational performance.
3The Global Energy Challenge With increasing energy demands, industry strives to balance the environmental and socio-economic tradeoffsIn addition to the focus on carbon emissions, potential impacts to water resources are of increasing interest.IEA outlook, 2010
4Water and the business case Fresh water is already a scarce resource in many parts of the worldWater is a local issue, but may be influenced by large-scale trends e.g. climate changeUNEP/GRID-Arendal, 2000The Business Case - risk factors for industry:Access and availability – Challenge of scarcity and water qualityRegulation – Competition for resources and increasingly stringent regulations. Growing pressure by civil society, consumers and mediaOperations – Effective water management within operationsFinancial – Adherence to criteria from financial investor bodiesReputation – Corporate reputation and licence to operate
5Water initiatives for business The WBCSD publication - ‘Water for Business – Initiatives guiding sustainable water management in the private sector’ – (March 2010), compiles and shares the relevant tools and standards to support company efforts in managing water-related risks and mitigate water-related impacts.Current initiatives / tools:UK Federation House Commitment to Water EfficiencyAquawarenessUN CEO Water MandateAlliance for Water StewardshipWater Brief for BusinessBIER Water Footprint Working GroupWater Footprint NetworkCDP Water DisclosureWater Footprint, Neutrality and Efficiency Umbrella ProjectCollecting the Drops: A Water Sustainability Planner, GEMI Local Water Tool - NEWWater Neutral Offset CalculatorCorporate Water GaugeWater Sense ProgramGRI Water Performance IndicatorsWater Stewardship InitiativeIPIECA GWT for oil and gas - NEWWater Use Assessment with Life Cycle AssessmentISO Water footprint: Requirements and guidelinesWBCSD Global Water ToolStrategic Water Management in the Minerals IndustryWRI Aqueduct
6What does IPIECA do?IPIECA helps the oil and gas industry improve its environmental and social performance by:Developing, sharing and promoting good practices and solutionsEnhancing and communicating knowledge and understandingEngaging members and others in the industryWorking in partnership with key stakeholdersIPIECA is the industry’s principal channel of communication with the United Nations.Water is one of the 9 IPIECA focus areas.The Water Task Force focus on assessing water risk and enhancing environmental and operational performance01/04/2017
7Water in the oil and gas sector Fresh water is a socio-economic, environmental and key business issue and has multiple uses in upstream and downstream oil and gas operationsWater risks:Environmental – impact to regional ecosystemsSocial – competition for the resourceHealth – fresh water and sanitation (employee health)Regulatory – government restrictionsResource – availability and qualityReputation – corporate reputationIncorporating fresh water management into strategic oil and gas processes is an integral part of:social and environmental responsibility;managing water-related business risks, andImproving operational efficiency
8IPIECA action - addressing water risk and enhancing environmental and operational performance A company’s water needs should be understood in relation to local externalitiese.g. water availability, quality, stress, access to improved water sources and sanitation…Understanding water use can be improved by considering each part of the oil and gas value chain
9IPIECA tools, guidance and publications (1/2) IPIECA ‘Overview of fresh water issues for the oil and gas industry’, 2010Members only document, a high-level overview of relevant fresh water issues, exploring the business case for water risk identification and action.IPIECA ‘Petroleum refining waste / wastewater use and management’, 2010Manual describing typical ‘best practices’ and strategies used in petroleum refineries to manage water, including ways to reduce water usage.IPIECA/API/OGP ‘Oil and gas industry guidance on voluntary sustainability reporting’, 2010The guide facilitates industry benchmarking and aggregation of data, enabling consistency in reporting driving performance improvementThe guide includes a new fresh water indicator (E6)
10IPIECA tools, guidance and publications (2/2) IPIECA ‘The Global Water Tool for oil and gas’, NEWThe Tool helps oil and gas companies map their water use and assess risks for their overall global portfolio of sites.The tool is customised for each type of operationIPIECA ‘Biofuels and Water document’, launch March 2012Outcome of Biofuels and water workshop, 2011Addresses water issues related to first generation bioethonal and biodieselIPIECA is currently working to develop guidelines for fresh water management across the oil and gas lifecycleAn internal guide for industry with a focus on the most freshwater intensive activities for upstream, onshore oil and gas activities.
11IPIECA Global Water Tool for oil and gas This is a customized version of the free and easy-to-use World council for Sustainable Development (WBCSD) Global Water Tool. The Tool will help oil and gas companies map their water use and assess risks for their overall global portfolio of sites considering each part of the oil and gas value chain.
12Where are the water risks in your portfolio? How many of your refinery sites are in extremely water-scarce areas and therefore at greatest risk? How will that look in the future?What percentage of your production volume is in water scarce areas? And in 2025 and 2050?How many of your sites are in countries that lack access to improved water and sanitation?
13What does the GWT for oil and gas do? Provides a high-level preliminary screening of risk across an asset portfolio.Compares your company’s water use (site-by-site) with validated water, sanitation and population informationEnables calculation of water consumption, efficiency and intensity metricsEstablishes relative water risk in your company’s portfolio to prioritize actionCreates IPIECA and GRI Water sustainability reporting indicator data, inventories, risk and performance metrics, and geographic mapping.Enables effective communication with internal and external stakeholders on your company’s water issues.
14The Tool is comprised of: Excel workbook – inputsEight inventory input sheets for each type of oil and gas operation, detailing site location and water usage information.ProductionTransport – TerminalsGas processingRefiningDrillingPetrochemicalsRetailOil sands
15Online mapping - outputs This feature enables you to plot all of your sites with external water datasets and download locations in a map.There are unique icons for each of the 8 types of oil and gas value chain units
16Other outputs: Oil and gas metrics; country/watershed reports; reporting metrics and maps Reporting metric outputsMapping outputs
17Bonus Biodiversity data layer Why?As with water, managing biodiversity or ecosystem-related issues globally requires an understanding of a company’s ecosystem impact & dependencies locally.Mapping areas of water scarcity/stress as well as areas of biodiversity importance is of business value to companies in recognizing and managing these combined risksThe Biodiversity dataConservation International have supplied Biodiversity hotspots dataBiodiversity hotspots adds an additional level of risk assessment and functionality.The Biodiversity data layer provides a high-level screening to be complemented by more detailed subsequent assessmentNote: Not being in a hotspot does not necessarily mean the area is of interest, or vice versa.
18What next?Ensuring compatibility between the Global Water Tool and the Local Water ToolPromotion of the IPIECA Global Water Tool across the Oil and Gas sectorScoping of Exploration and Production best practicesOutcomes will complements existing refining document
19the global oil and gas industry association IPIECAthe global oil and gas industry associationfor environmental and social issuesFor more information or to talk with Karl Fennesseyplease visit us after the presentation at Booth 9127
20Mr. Karl Fennessey Senior Consultant ConocoPhillips, USA Karl D. Fennessey is a director, climate change and sustainable development, for ConocoPhillips located in Houston, Texas.Fennessey began his industry career in 1989 with The Dow Chemical Company where he served in various refining, engineering, technology, and corporate strategy positions. Fennessey joined ConocoPhillips in 2008.Fennessey is a member of the state appointed Texas Water Conservation Advisory Council. He has previously served on the Great Western Credit Union Board and as the Finance Chair on the Global Environmental Management Initiative Board.Fennessey earned a bachelor of science degree in chemical engineering from the University of Texas in Austin in He is a registered Professional Engineer