21st Joint GCC-Japan Environment SymposiumSustainable Environment, Climate Change and renewable Energy

for Oil and Gas IndustryDoha, Qatar

Sustainable Energy and EnvironmentObjectives, Challenges, the Needs and the Road Map

Center for Environment & Water

King Fahd University of Petroleum & MineralsDhahran, Kingdom of Saudi Arabia

February 5-6, 2013

Dr. Alaa A. BukhariDirector

Presentation

Sustainability, Environment and Energy - Fundamentals

Oil & Gas Industry – At a Glance

Environmental Impacts of Upstream Oil & Gas Industry

Environmental Challenges of Upstream Oil & Gas Industry

Needs to Meet Challenges

Roles of Stakeholders

Solution Road Map

Concluding Remarks

Sustainable Energy and EnvironmentObjectives, Challenges, the Needs and the Road Map

Introduction - Sustainability Principle

Sustainable Environment and Energy Objectives,Challenges, the Needs and the Road Map

Environmental

SUSTAINABILITYA Global Challenge

EconomicSocial

o Development that meets the needs of the present without compromising theability of future generations to meet their own needs.

Introduction - Global Energy Demand

Sustainable Environment and Energy Objectives,Challenges, the Needs and the Road Map

6

8

10

12

14

16

18

20

199

0

199

5

200

0

200

5

201

0

201

5

202

0

202

5

203

0

203

5

8.69.0

9.7

11.1

13.2

14.5

15.6

16.9

18.2

19.4

En

erg

yU

se

(Bill

ion

To

ns

of

Oil

Eq

uiv

ale

nt)

Year

Global Energy Use

Introduction - Global Energy Sources

Sustainable Environment and Energy Objectives,Challenges, the Needs and the Road Map

0

20

40

60

80

100

1980 2008 2015 2020 2030 2035

10 10 10 1011 12

25

27 28 2725 23

17

2121 22 22 22

43

33 31 30 28 28

Sh

are

so

fE

ne

rgy

So

urc

es

(%)

Year

Global Energy Demand - Shares of Energy Sources

Oil

Gas

Coal

Nuclear

Hydro

Biomass and Waste

Other Renewables

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Environmentally Sustainable Energy Concept

EnvironmentGrowing Global Concern

SustainabilityThe Global Challenge

TerrestrialEnvironment

MarineEnvironment

OffshoreOperations

OnshoreOperations

Upstream Oil & GasIndustry

EnergyIncreasing Global Demand

Protection

Demand

Oil & Gas Industry – At a Glance

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Oil & Gas Industry – At a Glance

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Oil & Gas Industry Sectors

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

• The midstream and downstream activities take place after the initial productionphase and through to the point of sale.

• Midstream activities are commonly included as part of downstream operations for

much of the oil and gas industry.

• The upstream sector is strategically important for oil and gas producing countries.Upstream Midstream Downstream

Oil & Gas

Major Phases in Upstream Oil & Gas Industry Operations

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

DeskStudy

SeismicSurvey

AerialSurvey

ExploratoryDrilling

AppraisalDrilling

Development &Production

Decommissioning& Rehabilitation

Identifies areaswith favorablegeologicalconditions

If favorable featuresrevealed in Phase 1,then

Provides detailedinformation ongeology

Verifies the presence orabsence of a hydrocarbonreservoir and quantifiesthe reserves

Determines if thereservoir iseconomicallyfeasible to develop

Produces oil and gas from thereservoir through formationpressure, artificial lift, and possiblyadvanced recovery techniques,until economically feasible reservesare depleted

Decommissioning andrehabilitation may occur foreach of the above phases

1 2 3 4

5 6 7

Ground Requirement for Upstream Oil & Gas Industry

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

Desk Study Seismic SurveyAerial Survey Exploratory Drilling

Appraisal DrillingDevelopment &

ProductionDecommissioning &

Rehabilitation

• None • Low-flying aircraftover study area

• Access to onshore andmarine resource area

• Onshore navigationalbeacons

• Onshore seismic lines• Seismic operation camps

• Access for drilling andsupply units

• Storage facilities• Waste disposal facilities• Testing capabilities• Accommodations

• Additional drill sites• Additional access for

drilling and supply units• Additional waste

disposal and storagefacilities

• Improved access, storage and wastedisposal facilities

• Wellheads and flowlines• Separation/treatment facilities• Increased oil storage• Product export facilities• Flares• Gas production plant• Accommodation, Infrastructure• Transport equipment

• Equipment to plug wells• Equipment to demolish

and remove installations• Equipment to restore site

1 2 3 4

5 6 7

Environmental Impacts of Upstream Oil & Gas Industry

Major Environmental Issues

o Protecting the atmosphere

o Managing land sustainably

o Combating deforestation

o Combating desertification anddraught

o Sustainable mountain development

o Sustainable agriculture and ruraldevelopment

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

o Conversation of biological diversity

o Protecting and managing the ocean

o Protecting and managing fresh water

o Safer use of toxic chemicals

o Managing hazardous wastes

o Managing solid wastes and sewage

o Managing radioactive wastes

Environmental Impacts of Upstream Oil & Gas Industry

Potential Environmental Impact components

o Human, socio-economic and cultural impacts

o Atmospheric Impacts

o Aquatic Impacts

o Terrestrial impacts

o Biosphere Impact

o Potential emergencies

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

Environmental Impacts of Upstream Oil & Gas Industry

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

Desk Study Seismic SurveyAerial Survey Exploratory Drilling

Appraisal DrillingDevelopment &

ProductionDecommissioning& Rehabilitation

None Noise Noise/Light/Footprint Footprint , Discharges,Emissions, WasteSocio-economic culture

Noise, Emissions , Waste

1 2 3 4

5 6 7

Impact

AffectedComponent

NoneHuman, socio-economicand cultural impacts ,Atmospheric Impacts ,

Biosphere Impacts

Impact

AffectedComponent

Footprint , DischargesEmissions, WasteSocio-economic culture

Footprint, DischargesEmissions, WasteSocio-economic culture

Human, socio-economic and cultural impactsAtmospheric Impacts , Aquatic Impacts,Terrestrial impacts ,Biosphere Impact s,

Potential emergencies

Human, socio-economic and cultural impacts,Atmospheric Impacts , Aquatic Impacts,Terrestrial impacts , Biosphere Impact ,

Potential emergencies

Environmental Impacts of Upstream Oil & Gas Industry

Potential Emergencies

o Spillage of fuel, gas, chemicals and hazardous

o Oil or gas well blowout

o Explosions

o Fires

o Unplanned plant upset and shutdown events

o Natural disasters and their implications on operations, for exampleflood, earthquake, lightning,

o War and sabotage

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

Environmental Challenges in Upstream Oil & Gas Industry

o Establish Sustainable Upstream Oil and Gas Industry

o Comply with all legislations and standards related to Health,Safety and Environment (HSE).

o Maintain essential development and industrialization in asustainable manner.

o Ensure stable global energy supply with increasing demand.

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Needs to Meet Environmental Challenges

o Integrated Efforts at Global, Regional, National and Local levels Focusing on

o Promoting the development and implementation of environmentallysustainable technology and management protocol

o Enhancing appropriate resources and expertise

o Ensuring commitments , supports and participation of stakeholders

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Oil & Gas Industry

Government Organizations and Regulatory Authorities

Financial Institutions

Service Sectors

Petroleum Industry Forums and Associations

Educational and Research Organizations

Environmental and Social Interest Groups

General Public

Role of Stakeholders

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Upstream Oil &Gas Industry

GovernmentOrganizations

and RegulatoryAuthorities

ServiceSectors

Educational and ResearchOrganizations

FinancialInstitutions

PetroleumIndustry Forumsand Associations Environmental

and SocialInterest Group

GeneralPublic

SustainableEnvironment and

Energy

SustainableOil & GasProduction

Sustainable Technical& Logistic ServiceStandards &

Guidelines

Funding with Commitmentto Sustainable Stewardship

PublicAwareness &Participation

EnvironmentallySustainable Strategy,

Standards &Management Protocol

Environmentally Sustainable TechnologySkilled Human Resources

Solution Road Map

Sustainable Environment and EnergyObjectives, Challenges, the Needs and the Road Map

Needs StakeholdersCollaboration Solution

Educational and ResearchOrganizations

Government Organizations& Regulatory Authorities

Financial Institutions

Petroleum IndustryForums & Associations

Service Sectors

Environmental and SocialInterest Groups

General Public

o Environmentally sustainabletechnology development

o Appropriate human resourcedevelopment

o Strategy, Standards, andManagement protocoldevelopment and implementation

o Ensuring corporate commitments

o Technical and logistic supports

o Public awareness andParticipation

EnvironmentallySustainable

Upstream Oil &Gas Industry

COLLABORATION

Concluding Remarks

o The Upstream Oil & Gas Industry sector is strategically important.

o The main challenge for the sector is meeting increasing demand whilecommitting to the environmental legislation and standards

o The solution matrix for environmentally sustainable energy system ismultidimensional, and hence, quite complex and challenging too.

o Success demands an integrated solution approach.

o Strong and long-term collaboration among upstream oil & gas industry andeducational and research institutions is of paramount importance.

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map

Dr. Alaa A. BukhariDirector

Center for Environment & Water

King Fahd University of Petroleum & MineralsDhahran, Saudi Arabia

www.kfupm.edu.sa

Sustainable Environment and Energy Objectives, Challenges,the Needs and the Road Map