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    Introduction to Oil & Gas Industry and Sustainable Development PCB/PDB 101211 August 2014 & 15 August 2014

    CURRENT ISSUES IN SUSTAINABLE

    DEVELOPMENT

    Noor Amila Wa n Abdullah Za wawi, Ph.D [email protected] EN GINEERING DEPARTM ENT, UTP

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       C   O   U   R   S   E   L   E   A   R   N   I   N

       G

       O   U   T   C   O   M   E   S   (   C   O   )

    1. Describe the various steps of the petroleum industry life cycle and

    understand which disciplines are involved at each step

    2. Explain how oil and gas are discovered and produced

    3. Explain how oil and gas are transported from the site of production

    to refineries or treatment plants

    4. Explain how oil and gas are treated and exported to markets

    5. Describe various petrol and petrochemical products

    6. Describe knowledge and principle of sustainable development.

    7. Explain the concept of legacy of unsustainable world.

    8. Able to relate the patterns of development and sustainable

    development with the role of engineers in industry.

    9. Explain various types of footprints and the relation with

    sustainable development.

    2

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    LLO1 : Able toidentify mainissues in SD

    LLO2 :Able to explain withexamples each of theissues and the role ofengineers in SD

    LLO3 :Able to relate keysustainability issuessustainable with engineeringaspects

       L   E   S   S   O   N   L   E   A   R   N   I   N

       G

       O   U   T   C   O

       M   E   S   (   L   L   O

       )

    LLO2/CO8ENGINEER

    S

    LLO2/CO9FOOTPRIN

     TS

    LLO1/CO7LEGACY

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    WHAT IS SUSTAINABLE DEVELOPMENT?

    Development that

    meets the needs of

    the present without

    compromising theability of future

    generations to meet

    their own needs.

    4

    sustainability

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    1.3 billion without access to clean water

    How a re we doing so far???

    about half of humanity lacking access toadequate sanitation and living on less than 2

    dollars a day

    approximately 2 billion without accessto electricity

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    TOPIC : KEY ISSUES IN SD

    Biodiversity Loss

    Poverty

    Energy Security

    Water Stress

    7

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    BIODIVERSITY LOSS

    9

    - ISIS Asset Management Report, UK, 2004

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    IMPACT OF O&G EXPLORATION ON ENVIRONMENT

    10

    localdetrimentalimpacts to:

    soils

    surface

    groundwater

    biodiversity

    Caused by:

    improper disposal of saline waterproduced with oil and gas

    accidental of hydrocarbon and

    produced-water releases

    abandoned oil wells that wereorphaned or not correctly plugged

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    LLO2/CO8ENGINEERS

    LLO2/CO9FOOTPRIN

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    IMPACT OF PETROLEUM EXPLORATION ON

    BIODIVERSITY

    11

    ExplorationActivity

    Seismic

    Drilling

    Well

    Suspension& Abandon

    -ment

    Air gun discharges

    Chemical explosives

    Vessel transits

    Discharge of toxic drilling fluidsDischarge of fines and solids fromdrilling

    Operational noise

    Vessel and aircraft traffic

    Loss of well control leading tooil spill

    Debris

    Vessel and aircraft traffic

    Environmental Disturbance Factor

    cont.

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    Loss ofHabitat

    Displacementof loss ofbiota (esp.

    fish &shellfish)

    Degradationof beach

    Displacement

    of fishingactivities

    THE SIDE EFFECT OF THE EXPLORATION

    ACTIVITY

    12

    Air gun discha rges

    Che m ica l explosives

    Ve ssel tran sits

    D ischa rge of toxic drilling fluids

    Discharge of fines a nd solids fromdrilling

    Ope rational noise

    Vessel a nd a ircraft traffic

    Loss of we ll control lea ding to

    oil spill

    Debris

    Vessel a nd a ircraft traffic

    Ref: Engelhardt, 1989

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    OIL SPILLAGES

    13

    LLO1LEGACY

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    LLO2/CO8ENGINEERS

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    LLO1LEGACY

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    LLO1LEGACY

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    Increasing global demand is driving new oil and gasdiscoveries. Over the next 20 years, it’s expected that 90 per

    centofproductionwill comefromdevelopingcountries.

     Yet many countries rich in oil and gas arehome to some of the world’s poorest people.

    How can t hi s happen?

     Too often, wealth staysin the hands of

    politicians and industry

    insiders.

    Payments made togovernments to exploit

    resources remain secret.

    Revenues don’t getpublished.

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    LLO2/CO8ENGINEER

    S

    LLO2/CO9FOOTPRIN

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    POVERTY IN NIGERIA

    "Despite the fact that the Nigerian economy is growing,the proportion of Nigerians living in poverty is increasingeveryyear, although it declined between1985 and1992,and between 1996 and 2004," head of the NBS bureau

     Yemi Kalesaid.

    Poverty has risen in Nigeria almost 100 million people living on less than a$1 (£0.63) a day, despite economic growth,statistics have shown.

     TheNational Bureauof Statistics 60.9% of Nigerians in 2010 were living in

    "absolute poverty" - this figure had risen from54.7%in2004.

    Nigeria is Africa's biggest oil producer but the sector

    has beentaintedbyaccusations ofcorruption.

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    NIGERIA’S POPULATION THAT FACED POVERTY

    1 7 . 1

    3 4 . 7

    3 9 . 2

    6 7 . 1

    6 8 . 7

    1 1 2 . 4 7

    0 20 40 60 80 100 120

    1980

    1985

    1992

    1996

    2004

    2010

    Series 3

    18

    millions

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    LLO1LEGACY

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    CAN YOU IMAGINE A WORLD

    WITHOUT ENERGY?

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    LEGACY

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    Opening Thoughts

    LLO1

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    FOOTPRIN

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    Opening Thoughts

    LLO1

    LEGACY

    LLO2/CO8ENGINEERS

    LLO2/CO9

    FOOTPRIN

    TS

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    Opening Thoughts

    LLO1

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    FOOTPRIN

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    Opening Thoughts

    =

    LLO1

    LEGACY

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    Facts and Figures

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    Facts and Figures

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    FOOTPRIN

    TS

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    LLO2/CO8ENGINEERS

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    Facts and Figures

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    LLO2/CO8ENGINEERS

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    Facts and Figures

    LLO1

    LEGACY

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    Facts and Figures

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    Facts and Figures

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    LLO2/CO9

    FOOTPRIN

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    LLO2/CO8ENGINEERS

    LLO2/CO9

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    Facts and Figures

    LLO1

    LEGACY

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    LLO2/CO8ENGINEER

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    Facts and Figures

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    LLO2/CO8ENGINEERS

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    Facts and Figures

    LLO1

    LEGACY

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    Facts and Figures

    =

    LLO1

    LEGACY

    LLO2/CO8ENGINEERS

    LLO2/CO9

    FOOTPRIN

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    35

    International Energy Agency (IEA) definesenergy security as the uninterrupted

    availability of energy sources at anaffordable price.

    Oil is the most volatile energy commodityin the world.

    Reducingour use of it is the only

    genuine energy security strategy

    Lack of energy security is thus linked to thenegative economic and social impacts of eitherphysical unavailability of energy, or prices that arenot competitive or are overly volatile.

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    LLO1LEGACYCOMPONENT OF ENERGY SECURITY

    36

    EnergySecurity

    Reliable / Uninterrupted supply

    Affordable / Compe tit ive supply

    Accessible / Availab le supply

    NationalSecurity

    EnvironmentSecurity

    EconomicSecurity

    EnergySecurity

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    LLO2/CO8

    ENGINEERS

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    LLO1LEGACYISSUE IN ENERGY SECURITY

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    Oil and other fossil fueldepletion (peak oil, etc)

    Reliance on foreign sources of energy

    Geopolitics (such as supporting dictatorships,

    rising terrorism, “stability” of nations that

    supply energy)

    Energy needs of poorer countries, and demands from

    advancing developing countries such as China and India

    Economic efficiency versus population growth debate

    Environmental issues, in particular climate change

    Renewables and other alternative energy sources

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     Africa: The Rush for Black Gold Africa: The Rush for Black Gold

    LLO1

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    General Overview of Africa

    Sudan and South Sudan had been the third largest oil producer in the

    region before South Sudan shut in all of its oil production in January 2012.

    Nigeria has been the top liquid fuels producer in the Sub-Saharanregion, followed by Angola. Together they made up 75% of total liquid

    fuels produced in Sub-Saharan Africa in 2012.

    Top SSA Liquid Fuels Producers in 2012

    CountryProduction

    (million bbl/d)

    Nigeria 2.52

    Angola 1.87

    Equatorial Guinea 0.32

    Congo (Brazzaville) 0.29

    Gabon 0.24

    Other SSA 0.64

    Total SSA 5.88Source: EIA, International Energy Statistics

    Nigeria43%

     Ang ola32%

    EquatorialGuinea

    5%Congo

    (Brazzaville)5%

    Gabon4%

    Rest o f SSA11%

    Source: EIA, International Energy Statistics

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    LLO2/CO8ENGINEERS

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    The Challenges

    Unplanned disruptions caused by oil theft and pipeline damagecompromises a substantial portion of Nigeria’s crude oil production.

    Crude oil production peaked at 2.44 million bbl/d in 2005. Despite new

    production coming online, crude oil output was only 2.10 million bbl/d

    in 2012.

    0

    1

    2

    3

    2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

    Oil Production in Nigeria, 2003-2012million bbl/d

    Source: EIA, International Energy Statistics and Short-Term Energy Outlook

    Crude oil output fell by more than

    25% as infrastructure attacks and oil

    theft escalated (2005-2009).

    In 2010, attacks on oil facilities

    declined following the

    implementation of the amnesty

    program. But after 2011disruptions began to escalate

    liquid fuels

    crude oil production

    LLO1

    LEGACY

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    Oil Theft in Nigeria

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    Conflict over Oil

    LLO1

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    FOOTPRIN

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    Conflict over Oil

    It is estimated that South Sudan has around 4

    times the oil deposits of Sudan

    South Sudan relies on pipelines, refineries,

    and Port Sudan's facilities in Red Sea state inSudan, the agreement stated that the

    government of Sudan in Khartoum would

    receive a 50% share of all oil revenues

    In January 2012, South Sudan suspended oil

    production over profit sharing disagreement

    CNPC and PETRONAS were affected

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    Conflict over Oil

    LLO1

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    THE OIL SUPPLY IS DEPLETING?

    45

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    OIL & FOSSIL FUEL DEPLETION

    • Quickly using up t he vast bu t finitea m ount of fossil fue ls

    • Yea r of Pe a k Oil Produ ction (POP)

    • Each country ha s its own yea r of POP,a fter which it m ust begin to importoil, m ore o il eve ry yea r.

    • [Statistics from Heinberg,The Party'sOver , pp. 103-104, cited fromDuncan'sWorld Oil Forecast #5 ].

     8  /  1  0  /  2  0 1 4 

    N O OR  A M

    I  L A 

    D

    E P T 

     OF 

     C I  V I  L 

    E N GI  NE E R I  N G

    46

    Country Yea r of POPOutside Middle East 1997

    Mexico 2005

    Canada & Algeria 2006

    Nigeria 2007Iran 1976

    Iraq & UAE 2009

    Kuwait 2010

    Saudi Arabia 2017

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    LLO1LEGACY

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    MethaneMigration

    intoAquifers

    WaterPollution

    WaterUse

    49

    How d oes O&G causing water stress?

    A single frack uses 5-10 Olympic size

    swimming pools of water. The frackingindustry removes water from the watercycle and turns clean water intopollutedwater thatmustbe treatedanddisposedof.

    Massive volumes of toxic water are returnedto the surface. Known as produced water it iscontaminated with chemicals used in thefrackingprocess and materials leached from

    the shale rock including heavy metals andradioactive elements. Additional pollution of aquifers and surface water is caused bymethane migration, leaking wells, spills andaccidents.

    Hydraulic Fracturing is designed to extract

    methane from shale rock and inevitablydisrupts thegeologyof anarea. Thegaswellsthemselves are the most common pathwayfor methane migration (leakage). This canlead to high levels of methane in streams,aquifersandeventuallydrinkingwater.

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    HMMM…

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    QUIZ!!!!

    As an ENGINEER/SCIENTIST/TECHNOLOGIST – WHAT CAN YOU DO TO ADDRESS

    THE ISSUES IN SUSTAINABLE DEVELOPMENT?

    5

    3

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    THAN K YOU © 2 0 1 3 IN STITUT E OF TEC HN OLOGY PETR ONAS SD N BH DAl l r igh ts r ese rv ed . N o p a rt o f t his d oc um e nt m a y b e r ep ro du ce d , s to re d i n a r et ri eva l s yst e m o r t ra n sm it te d i n a n y f or m o r b y a n y m e a ns ( el ec tr on ic ,mechanical,photocopying, recording or otherwise)withoutthe permissionof the copyrightowner.