Download Understanding Biodiversity Protection Opportunities in the Oil and

Understanding
Biodiversity Protection
Opportunities in the Oil
and Gas Industry
John Candler P.E.
1
The Basics
2
The past………
We should drill at
this location, the
geology
department says
it looks like a
promising new
reserve!
What about the
environmental department?
Are there any endangered
species? What will they
say?
Don’t worry
about those guys
they will just
have to make it
work out.
3
The future…?
We should drill at
this location, the
environmental
department says
it looks like its
outside the new
habitat reserve!
What about the
geology department?
What will they say?
Is there any oil or
gas?
Don’t worry
about those guys
they will just
have to make it
work out.
4
Definition: Biodiversity


The term biodiversity, short for
biological diversity,
The Convention on Biological
Diversity (CBD). The CBD
defines biodiversity as: “The
variability among living
organisms and the ecological
complexes of which they are
part; including diversity within
species, between species and
of ecosystems.”
5
Source: Shell.com
Location of biodiversity resources:
Photosynthetic activity on land
Source: World Atlas of biodiversity
6
Location of biodiversity resources:
Flowering plant family diversity
Source: World Atlas of biodiversity
7
Location of biodiversity resources:
Current forest distribution
Source: World Atlas of biodiversity
8
Location of biodiversity resources:
Vertebrate family density
Source: World Atlas of biodiversity
9
Location of biodiversity resources :
Combined country level biodiversity
resources
Internationally protected areas over 100,000 ha
10
Source: World Atlas of biodiversity
11
Some regions
with high oil
production
also have
areas of high
biological
diversity
12
Regional location of biodiversity resources
13
Regional location of biodiversity resources
14
Regional location of biodiversity resources :
Marine biodiversity resources
15
Protected Areas identified with yellow points
Sourrce: Caribbean IPIECA IMAPS
Why is it important?

From a global perspective:
– Biodiversity is fundamental to our existence. We depend on
it for almost every aspect of our lives
– Scientists have catalogued 1.75 million species but estimate
that there are still millions more yet to be identified
– These future options for biodiversity, and humankind’s
possible use of it, drive many to argue that we should be
cautious about how we manage and use it.

From an E& P Business perspective:
– Protecting biodiversity is crucial to the future of our
operations.
– Legal and regulatory requirements,
– Strategic, operational, reputation and financial reasons
– Recognition and reputation as a responsible operator build
trust with regulators and key stakeholders.
16
Source: Shell.com
Why worry?



Much of the Earth’s great
biodiversity is rapidly
disappearing,
Earth is now faced with the
most severe extinction
episode since the event that
drove the dinosaurs to
extinction 65 million years
ago.
Species are being lost to
extinction at estimated rate
of three species every hour.
17
Source:"Biodiversity," Microsoft® Encarta® Online Encyclopedia 2004
Shell.com
What is being done by
society?



The world has responded to the possible
loss of biodiversity and taken action
Before governments, non-governmental
organizations (NGO’s) grew aware of the
issue.
NGOs focused on biodiversity conservation.
– World Conservation Union (IUCN)
– World Wide Fund for Nature (WWF)
Source Shell.com
18
IUCN: Protected Area
Management Categories
:
CATEGORY Ia:
Strict Nature Reserve: protected area managed mainly for
science
CATEGORY Ib
Wilderness Area: protected area managed mainly for
wilderness protection
CATEGORY II
National Park: protected area managed mainly for ecosystem
protection and recreation
CATEGORY III
Natural Monument: protected area managed mainly for
conservation of specific natural features
CATEGORY IV
Habitat/Species Management Area: protected area managed
mainly for conservation through management intervention
CATEGORY V
Protected Landscape/Seascape: protected area managed
mainly for landscape/seascape conservation and recreation
CATEGORY VI
Managed Resource Protected Area: protected area managed
mainly for the sustainable use of natural ecosystems
19
Source: www.unep-wcmc.org
Why should you care
about IUCN categories?

The ICUN passed a recommendation
at its 2000 Conservation Congress. It
called upon governments to prohibit
mining (including oil and gas
operations) from protected areas in
ICUN categories I-IV
Source SPE : 86577
20
IUCN: Protected Area
Management Categories
:
CATEGORY Ia:
Strict Nature Reserve: protected area managed mainly for
science
CATEGORY Ib
Wilderness Area: protected area managed mainly for
wilderness protection
CATEGORY II
National Park: protected area managed mainly for ecosystem
protection and recreation
CATEGORY III
Natural Monument: protected area managed mainly for
conservation of specific natural features
CATEGORY IV
Habitat/Species Management Area: protected area managed
mainly for conservation through management intervention
CATEGORY V
Protected Landscape/Seascape: protected area managed
mainly for landscape/seascape conservation and recreation
CATEGORY VI
Managed Resource Protected Area: protected area managed
21
mainly for the sustainable use of natural ecosystems
Source: SPE 86577
Issues with IUCN
protected areas






ICUN has been advocating a global system for classifying
protected areas
Some organizations are using the categories to determine land use
options and push companies to adopt the ICUN 2000 resolution
and make blanket prohibitions about where they will not operate.
This was not the intent of the categories
If the system is to be taken up by governments and provide a level
playing field it will need to be modified
The categories could be strengthened by introducing a consistent,
open, transparent and inclusive process involving key stakeholders
such as local communities, government agencies, and industry.
Just as NGOs are stakeholders about energy projects, industry
should be seen as a legitimate stakeholder in designation of
protected areas.
22
Source: SPE 86577
Key threats to
biodiversity








Habitat loss
Changing land use
Over harvesting/exploitation
Alien species
Pollution
Climate change
Human population growth
The potential threat from oil and
gas development
– Long-term energy scenarios show global energy demand expecting to
triple or even quadruple by the year 2050. A significant portion of this
demand is expected to be met with oil or gas.
Source: Shell.com
23
Biodiversity and the
oilfield
24
Impacts of the oil and
gas industry

Oilfield range of negative direct impacts on species and
ecosystems, such as:
– Soil, air and water contamination,
– Habitat fragmentation,
– Deforestation and erosion.

Oil and gas development in undeveloped areas can also
indirectly lead to further secondary impacts, resulting in:
– Immigration and spontaneous settlement,
– Land conversion for agriculture,
– Building of infrastructure.

Many of the direct primary impacts of an oil or gas project can
be reduced (if not fully overcome) through careful
management and technology. Some of the secondary impacts
present a larger challenge to industry and to society as a
whole.
25
Source Shell.com
Industry management techniques
to enhance biodiversity








Address biodiversity issues early on
Consult with biodiversity experts
Integrating biodiversity into the impact assessment
process
Carry out Biodiversity Baseline Assessment and
Monitoring Studies
Following up impact assessment with management
systems
Build biodiversity into performance monitoring
Establishing a Biodiversity Working Group
Providing communication tools to help raise internal
awareness
26
Source:Shell.com
Methods of advancing biodiversity
protection on a project basis






Minimize discharges
Minimize Foot print
Minimization of habitat disturbance,
Creating new habitat to offset habitat taken
during operations,
Prevention of introduction of invasive
species,
Restricting development of new areas
through controlled access.
27
Source Shell.com
Two visions of current
oilfield practices
Bp.com
The Wilderness Society
28
Habitat fragmentation as a
function of roads servicing an
oilfield
Direct impacts 4%
250 Ft zone = 52%
¼ mile = 97%
29
Case histories of
biodiversity
management in
exploration and
development projects
30
Case histories of
biodiversity protection


Management of E&P operations in
mangrove ecosystem (Indonesia)
Management of pipeline installation.
(NW shelf of Western Australia)
31
Indonesia case history


Operational situation:
–
–
Operating production operation in dense mangrove area for 30 years.
Operations cover 2% of the delta plain areas.
–
–
5 districts, many villages, 50,000 total inhabitants.
Previously used trawl nets from fishing that were prohibited in the 1980’s
Social situation:


Population switched form fishing to shrimp culture in the 1980’s culture. Currently have
73% of the mangrove system in shrimp culture.
Biodiversity challenge:
–
–
–
–
In the last decade, rapid increase of local population and deforestation due to
shrimp culture development.
Impacts to the mangrove ecosystem have caused degradation of water quality,
decreasing shrimp and fish productivity ,increasing occurrence of disease on
shrimps, increases in erosion, coastal abrasion.
Land disputes with shrimp farmers.
In the occurrence of increased shrimp disease and decreasing harvest the local
population had a tendency to place blame on the exploration and development
operation.
32
Indonesia case history

Operational management steps:
–
–
–
–

Minimize land clearing for operations
Re-vegetate cleared land
Conduct shrimp pond training for local population
Construct shrimp pond pilot project that preserved
mangroves
Management of social environment
–
–
–
–
Participate in community development
Develop system for management of environmental claims
Promotion of community environmental awareness
Involvement of local community in exploration and
development operations.
33
Indonesia case history

Results of management efforts:
– The programs have been successful and the relationship
between the company and the community has improved.
– Through participation in environmental awareness the local
community has gained knowledge in the methods of sustainable
management of shrimp culture activities and mangrove
preservation.
– Besides being involved in monitoring process the local
community are also employed in the E&P industry according to
their skill level.

Conclusion:
– E&P operations in sensitive social and mangrove ecosystem
requires an integrated approach to minimize social and
environmental impacts.
– The actions take have also improved communication with
communities as well as solving disputes and claims.
34
Source: SPE 56578
Offshore Australia case history

Operational situation:
– Lay two pipelines in the North West Shelf of
Western Australia
– Use of barge with 8 anchors to lay pipe

Biodiversity challenges:
– Sensitive coral resources


237 sensitive seafloor areas along first pipeline route,
1,150 sensitive seafloor areas along the second
pipeline route
35
Offshore Australia case history









Management steps:
Novel application of remote sensing data.
Development of effective method of mapping seafloor
resources using GIS system
Extensive route planning that considered avoidance of
sensitive areas.
Innovative anchor management system
Computer navigation system for barge.
Real time diver monitoring of anchor locations
Development of monetary incentive program for contractor
measured against a numerical target for damage to coral
areas.
Awareness training for operational personnel
36
Offshore Australia case history

Results of management steps:
– After 786 anchor moves:
– 2 our of 237 areas slightly damaged on first pipeline route.
– 2 out of 1,150 areas slightly damaged on second pipeline
route

Conclusions:
– By demonstrating through performance that the industry
can preserve the natural environment the regulators and
wider community are provided confidence that the
petroleum industry can contine to develop oil and gas
resources in sensitive marine environments.
Source : SPE 86581
37
Additional opportunities
in the oilfield




Waste minimization
Beneficial reuse of drilling fluids and
cuttings
Use of directional and extended Reach
drilling
Management techniques for reduction
of road impacts
38
Directional and extended
reach drilling

Specifically identified and Promoted in the
National Energy Policy Chapter 5 “Energy for
a New Century”
39
Beneficial reuse of drill
cuttings
Bean Study Biomass
7
Biomass (g)
6
5
4
3
2
1
0
top soil
agriculturally
active
non-agriculturally 10% treated
active
diesel cuttings in
topsoil
Soil Types
0% 10% Treated cuttings 25% Treated cuttings
40
Conclusions

The issue of biodiversity is going to become
increasingly important to E&P operations.
Operators are currently developing technology and
management systems around the world that allow
for E&P operations in sensitive areas will mitigate
impacts on biodiversity resources.
Biodiversity protection can have many pathways

Taking a seat a the table with NGOs to become more a part


( camel usage to monetary incentives for contractors)
of the solution and less a part of the problem will
result in a greater long term business success.
41
Conclusions

Ignoring biodiversity issues and failing to
integrate biodiversity protection
measures will result in:
– Degraded company reputations
– Aggressive efforts by NGOs to stop all drilling
and production efforts in disputed regions.
– Damage to biodiversity resources for future
generations.
42
The future
We should drill at
this location, the
environmental
department and
the geology
department both
say it looks good!
The environmental
department has a
biodiversity
protection plan in
place.
The geology
department has
identified
promising reserves
at this location.
43
Final Thought
44