Operating in a variable climate
Assessing the impact of climate variability and change on mining in South Australia
CSIRO Workshop June 2015
Paul Claydon, Carbon Commercial Adviser
ADAPTING TO CLIMATE CHANGE
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Global Challenge
Experience of Climatic Events
Our Integrated Approach
─ Case study 1: Heatwaves
─ Case study 2: Flooding
Questions
GLOBAL CHALLENGE Santos’ vision is to be a leading energy company in Australia and Asia
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We are proud to be part of the solution by fuelling a cleaner energy future
Delivering our transformational LNG portfolio
Building a focused, exploration-led portfolio
Growing our strong domestic base business
ROLE OF NATURAL GAS The increased use of natural gas in place of coal-fired electricity generation is a scientifically recognised and demonstrated abatement option
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*13% = 198Mt coal to gas switch and 116Mt due to an increase in renewable and nuclear generation
Australia’s emissions reduction task to 2020 RECOGNISED: “Greenhouse gas emissions from energy supply can be reduced significantly by replacing current world average coal-fired power plants with modern, highly efficient natural gas combined-cycle power plants …” IPCC Fifth Assessment Report, 2014
DEMONSTRATED: The carbon intensity of electricity production in the USA fell by 13% from 2007-2012 * Of this reduction 198MtCO2 is due to fuel switching from coal to gas US Energy Related Carbon Dioxide Emissions, 2012 (EIA, 2013)
EXPERIENCE OF CLIMATIC EVENTS
Santos operates in locations within Australia and regionally which already experience impacts from climatic events
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Otway Basin
Phu Khanh Basin
Nam Con Son Basin
South Sumatra
Papua New Guinea
Carnarvon Basin
Browse Basin
Timor Sea Bonaparte Basin
Amadeus Basin
Cooper Basin
Surat/Bowen
Basins
Gippsland Basin
Gunnedah Basin
East Java Basin
Bay of Bengal
McArthur Basin
Santos assets
West Natuna Basin
Port Bonython
Patricia Baleen
Experienced and future climatic events include…
Heat waves
Flooding
Cyclones
Storm surges
…and the IPCC says with “virtual certainty” that globally there will be an increase in the frequency of climatic events in the future…
MANAGING CLIMATE RISK
Santos has integrated climate risks and opportunities into business as usual
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The Oil and Gas industry requires the management of risks including…
Safety
Environmental
Community
Commercial
Legal
Financial
Reputational
…climate risk is integrated into the risks above and addressed by Santos’ existing risk framework…
LIK
ELIH
OO
D
CONSEQUENCE
IDENTIFY HAZARD
ASSESS RISK
CONTROL RISK
REVIEW CONTROL
MEASURES
OUR INTEGRATED APPROACH
Understand, manage and monitor climate change risk and develop appropriate adaptation strategies for business
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Santos’ integrated governance approach:
Policies
Management standards
Engineering standards
Risk assessments
Centralised carbon and sustainability team
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12 Jan 2013: +49.6°C
13 Jul 1997: -0.5°C
CASE STUDY 1: HEATWAVES
Santos’ operations in Central Australia have experienced temperatures approaching +50ºC…
Our operations are already exposed to extreme temperatures…
…increases to average temperatures
may increase the likelihood and duration of heatwaves…
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CASE STUDY 1: HEATWAVES
Impacts:
Potential for adverse health effects such as:
Heat stress Heat exhaustion Heat stroke Heat cramps
Extreme heat events are identified by apparent temperatures in excess of 40ºC
“No job too important it can’t be done safely” 9 |
CASE STUDY 1: HEATWAVES
Controls:
Mandatory Heat Stress Training
Appropriate PPE - wide brim hats, sunscreen, sunglasses
Heat stress management plan with teams
Reschedule work (e.g. start work earlier)
Acclimatisation
Hydration
Installation of shaded work areas
Insulation of radiant heat sources
Minimising the manual nature of the task
Increased air movement by fans or evaporative systems
Monitoring symptoms - perspiring, headaches, stress
Santos has a number of controls to adapt to the risks of extreme temperature
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