available to download - IPIECA

IPIECA Global
Water Tool for oil
and gas webinar
1 and 2 March 2012
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 1

What is IPIECA?
• The global oil and gas industry association for
environmental and social issues
• Formed in 1974 following the launch of UNEP
• The only global association involving both the
upstream and downstream oil and gas industry
• Membership covers over half of the world’s oil
production
• IPIECA helps the oil and gas industry improve its
environmental and social performance by:
– Developing, sharing and promoting good practices and
solutions
– Enhancing and communicating knowledge and
understanding
– Engaging members and others in the industry
– Working in partnership with key stakeholders
• IPIECA is the industry’s principal channel of
communication with the United Nations.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 2

Aim of the webinar
To promote and encourage uptake of the IPIECA
Global Water Tool for oil and gas.
- A hypothetical 'Universe Energy Company’ will be used to illustrate
the application and use of the Global Water Tool to gain a global
perspective.
- Compatibility with the GEMI Local Water Tool will also be
highlighted.
• Jan Dell of CH2M HILL will present the webinar
• Please raise any questions you might have in the
Q&A box, as many as possible will be addressed in
the last 15 minutes
• Download the Global Water Tool for oil and gas and
the ‘How to’ presentation from the IPIECA website
(www.ipieca.org/topic/water/global-water-tool)
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 3

Universe Energy
Company
Water Management
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 4

Water management approach
• Overview of Universe Energy Company
• Business Case for Water Management
• Water Policy and Performance Goals
• Stakeholder Concerns
• Global Perspective: Use of the Global Water Tool
• Site Risk Management: Use of the Local Water Tool
– Existing Operations
– Planned Project
• Continuous Improvement: Looking Forward
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 5

Overview
• Headquarters: Laguna
Beach, California
• Integrated energy company:
– Exploration/drilling: 4 sites
– Production: 8 sites
– Gas Processing: 7 sites
– Refineries: 9 sites
– Petrochemicals: 5 sites
• Operations and planned
projects in 7 countries
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 6

Business case for water management
• Fresh water is already a scarce resource in many parts of the world
• Water scarcity is projected to increase in many places due to
population increase, industrialization and climate change
• Water risks:
– Environmental – impact to regional ecosystems
– Social – competition for the resource
– Health – fresh water and sanitation (employee health)
– Regulatory – government restrictions
– Resource – availability and quality
– Reputation – corporate reputation
• Incorporating fresh water management into strategic oil and gas
processes is an integral part of:
– social and environmental responsibility;
– managing water-related business risks, and
– Improving operational efficiency
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 7

Water strategy and public commitments
• The objective of our water strategy is to optimize how
the company manages water
• We are committed to:
– Conserving, protecting, measuring and monitoring all water
usage
– Optimizing expenses and minimizing risks by focusing water
assessment on assets that have the greatest impact
– Identifying and developing best practices at a local level and
then applying this knowledge across all assets
– Utilizing the company’s Research and Development
resources to drive technology advances
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 8

Stakeholder concerns
• Through stakeholder
engagement sessions with
global groups and local
communities, we were told
that the water-related issues
of concern are:
1. No environmental impacts
from operational discharges.
2. Minimize fresh water use in
areas of stress.
3. No environmental impacts
from water use practices.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 9

Global perspective
• Company desired to know and communicate the following:
– External communications:
• Key quantified metrics that established water management credibility
with stakeholders
– Internal purposes:
• Communication: Role of Water in Operations
• Water Information Management
– Data credibility and gaps
• Risk Management
– Prioritized risk ranking of global sites
– Prioritized ranking of fresh water use
• Benchmarking
– Water intensity per unit of production
– Recycle rates
• Technology Transfer
– Sharing of best practice between sites and business units
Universe Energy Company began by employing the
IPIECA Global Water Tool for Oil and Gas
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 10

Global Perspective: GWT for Oil/Gas
Enter Information into inventory worksheets
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 11

Global Perspective: GWT for Oil/Gas
Check water metrics worksheets for data credibility and gaps
Water Withdrawal Amount Missing
No Freshwater Discharge at this Site
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 12

Global Perspective: GWT for Oil/Gas
Corrected water metrics worksheets
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 13

Global Perspective: GWT for Oil/Gas
Check location information and printed maps by region
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 14

Country maps (1/2)
• Total renewable water per person 2008 (FAO)
• Projected total renewable water per person 2025 (FAO)
• Projected total renewable water per person 2050 (FAO)
• Water withdrawal per person (FAO)
• Industrial water withdrawal as par of total (FAO)
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 15

Country maps (2/2)
16
• Dependency ratio (FAO)
• Population served with improved water (WHO / UNICEF)
• Population served with improved sanitation (WHO / UNICEF)
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 16
16

Watershed maps
• Annual renewable water supply per person 1995 (WRI)
• Projected annual renewable water supply per person 2025 (WRI)
• Environmental water scarcity index (IWMI)
• Mean annual relative water stress index (UNH)
• Physical and economic water scarcity (IWMI)
• Biodiversity hot spots (Conservation International)
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 17

Role of water in operations
Oil & Gas Value
Chain Unit
Total
Freshwater
Withdrawals
Total All Water
Withdrawals
% of Total
Total
Recycled/
Reused
Percent
Recycled/
Reused
All Oil & Gas
Value Chain Units
Drilling and
Completion
(m 3 /year) (m 3 /year) (m 3 /year) (%)
107,607,600 115,697,600 100% 7,555,000 6.53
300,000 340,000 0.3% 0 0
Production 6,180,000 8,030,000 6.9% 1,700,000 21.17
Gas Processing 1,601,600 1,801,600 1.6% 355,000 19.70
Refining 99,500,000 105,500,000 91.2% 5,500,000 5.21
Petrochemicals 26,000 26,000

Global Perspective: GWT for Oil/Gas
Identify highest risk sites by evaluating watershed and freshwater usage
data
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 19

Optional stakeholder reporting
Also: GRI, DJSI, CDP Water Metrics
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 20

No Data
Extreme
Scarcity
Scarcity
Stress
Sufficient
Abundant
No
Yes
Geographical summary
Distribution of assets by
watershed scarcity
Assets in areas of
biodiversity stress
All Oil & Gas Value Chain Units (Watershed)
Annual Renewable Water Supply (actual)
(Source: WRI, Projections for 2025)
All Oil & Gas Value Chain Units
Biodiversity Hotspots
Source: Conservation International, 2004
25
35
20
20
30
25
29
15
20
10
15
5
3
5
3
2
10
5
4
0
0
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 21
21

Geographical summary
100,000,000
Total Fresh Water Withdrawal by Scarcity Region
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
m3/yr
0
Extreme Scarcity Scarcity Stress Sufficient Abundant
Areas for site risk assessments
Universe Energy is a fictitious entity with no relation to an actual company.

Site risk management
• Company desired to know and communicate the
following:
– External communication
• Strategic messaging of management of impacts and risk with
stakeholders
– Internal purposes
• Detailed risk management of existing sites
– Sites in high external water stress areas
– Sites in areas of interest to stakeholders
– Sites with high fresh water usage
• Detailed risk management of planned projects
– Risk Review of Water Management Plans
– Coal Seam Gas Project: Risk Review of Discharge Options
• Common management plan gaps: identification of gaps common
across BUs
Universe Energy Company employed the GEMI Local Water Tool for Oil and Gas
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 23

GEMI Local Water Tool (LWT) for Oil and Gas
• The GEMI Local Water
Tool (LWT) for Oil and Gas
is a free tool made by a group
of 40+ global companies to
help them and other
companies identify the external
impacts, business risks, and
opportunities related to water
use and discharge at a specific
site or operation. The
information generated in the
Local Water Tool may be used
by companies for developing
management plans and
communicating outcomes at
their discretion.
Public launch
on 6 March 2012
www.gemi.org/localwatertool
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 24
24

Specific site assessments
• Specific site internal and
external data is transferred to
the new GEMI Local Water
Tool MS Excel files for
detailed assessment
Site A
Site B
IPIECA Global Water Tool for Oil and Gas:
One MS Excel File for Portfolio
GEMI Local Water Tool for Oil and Gas:
One MS Excel File per Site
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 25

Module 2: local external conditions
• In Module 2, the User looks outside the fenceline of their
operations and determines the condition of each Influent
Source and Receiving Waterbody or Entity by assessing
water issues.
Local watershed
Note that oil/gas
industry growth is
also included
Local communities
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 26
26

Refinery case example
While this refinery has closed loop
cooling and has reduced water usage,
it still faces external risks.
Tool showed specific high risks:
• Local ecosystems under
stress from other larger users
in the area
• Cumulative demand in area
would soon exceed local
supply
• Increasing community public
concern on the refinery’s
water use
After using the LWT, the refinery took action to
address each risk:
• Increased external communication on water
efficiency
• Investigated the use of recycled municipal effluent
or hybrid dry cooling
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 27

New CSG project planning
Company desired to determine the relative risks and impacts of three
possible effluent management methods for a new project development.
• Location: Roma,
Queensland, Australia
• Number of wells: 2000
• Produced water per well: 10
m3/day
Universe Energy Company employed the GEMI Local Water Tool for Oil and Gas
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 28

CSG project planning: options
The Local Water Tool for Oil and Gas was set up to compare three
possible effluent management options.
Each option has a high Internal Importance Level
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 29

CSG project planning
External Stress Severity Levels were evaluated for each
Effluent Management Option.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 30

CSG project planning: risks
The Disposal
Well Option had
no impacts and
the fewest
potential risks.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 31

CSG project planning: management
Once Reinjection Effluent Management was selected, the LWT was
employed to assess management of risks.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 32

Continuous improvement
• Through the use of the Global and Local Water Tools for Oil
and Gas, the company:
– Collected data and measured portfolio wide water performance
– In high risk areas, assessed impacts, risks and sufficiency of
management plans
– Selected the best option for effluent management at a new
production site
– Built credibility with internal and external stakeholders
• In 2012, Universe Energy plans to:
– Update GWT and LWT files completed in 2011
– Reduce fresh water use in water stressed and scarce areas
– Survey all operations and planned projects for the use of nonfresh
water
– Survey recycle practices in existing operations and leverage
across assets
– Add quality data to the Global and Local Water Tool Assessments
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 33

Executive summary of challenges and actions
North America:
• Short-term supply (Downstream)
• Long-term supply (Upstream)
• Public perception (Upstream)
• Water management (Upstream and
Downstream)
• Recycle / Reuse (Downstream)
MENA & Europe:
• Short-term supply (Upstream)
• Long-term supply (Upstream)
• Public perception (Upstream)
• Water management (Upstream)
• Recycle / Reuse (Upstream)
Indonesia:
• Short-term supply (Upstream)
• Long-term supply (Upstream)
• Public perception (Upstream)
• Produced water management (Upstream)
Australia:
• Long-term supply (Upstream)
• Public perception (Upstream)
• Produced water management (Upstream)
Summary of challenges: Sourcing, regulations and public perception
Summary of actions: Water management and Recycle/Reuse
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 34

What next for 2012?
• IPIECA will continue to promote the Global Water Tool for oil and
gas as well as the GEMI Local Water Tool
• IPIECA has set a target of 80% uptake of the tool by its own
membership by year end.
• Water tools workshop 19 April Milan
– GWT and LWT for oil and gas in-depth
– Opportunity to share lessons learnt via industry case-studies
– Discuss next steps in terms of water management opportunities and
solutions
• IPIECA is currently working on developing upstream freshwater
management guidance
• Please contact ruth.romer@ipieca.org if you have any queries.
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 35

Thank you
IPIECA
the global oil and gas industry association
for environmental and social issues
www.ipieca.org
Universe Energy is a fictitious entity with no relation to an actual company.
05/03/2012 36