1 Understanding Biodiversity Protection Opportunities in the Oil and Gas Industry John Candler P.E.

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Understanding Understanding Biodiversity Protection Biodiversity Protection Opportunities in the Oil Opportunities in the Oil and Gas Industryand Gas Industry

John Candler P.E.

22

The BasicsThe Basics

33

The past………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.

44

The future…?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.

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Definition: BiodiversityDefinition: Biodiversity

The term biodiversity, short The term biodiversity, short for biological diversity, for biological diversity,

The The Convention on Convention on Biological DiversityBiological Diversity (CBD). (CBD). The CBD defines The CBD defines biodiversity as: “The biodiversity as: “The variability among living variability among living organisms and the organisms and the ecological complexes of ecological complexes of which they are part; which they are part; including diversity within including diversity within species, between species species, between species and of ecosystems.” and of ecosystems.”

Source: Shell.com

66

Location of biodiversity resources:

Photosynthetic activity on land

Source: World Atlas of biodiversity

77


Location of biodiversity resources: Flowering plant family diversity

88


Location of biodiversity resources:Current forest distribution

99


Location of biodiversity resources: Vertebrate family density

1010

Location of biodiversity resources :

Combined country level biodiversity resources

Source: World Atlas of biodiversityInternationally protected areas over 100,000 ha

1111

1212

Some regions with high oil production also have areas of high biological diversity

1313

Regional location of biodiversity resources

1414

Regional location of biodiversity resources

1515

Sourrce: Caribbean IPIECA IMAPS Protected Areas identified with yellow points

Regional location of biodiversity resources : Marine biodiversity resources

1616

Why is it important?Why is it important?

From a global perspective:From a global perspective:– Biodiversity is fundamental to our existence. We Biodiversity is fundamental to our existence. We

depend on it for almost every aspect of our livesdepend on it for almost every aspect of our lives– Scientists have catalogued 1.75 million species but Scientists have catalogued 1.75 million species but

estimate that there are still millions more yet to be estimate that there are still millions more yet to be identified identified

– These future options for biodiversity, and humankind’s These future options for biodiversity, and humankind’s possible use of it, drive many to argue that we should possible use of it, drive many to argue that we should be cautious about how we manage and use it.be cautious about how we manage and use it.

From an E& P Business perspective:From an E& P Business perspective:– Protecting biodiversity is crucial to the future of our Protecting biodiversity is crucial to the future of our

operations. operations. – Legal and regulatory requirements, Legal and regulatory requirements, – Strategic, operational, reputation and financial reasons Strategic, operational, reputation and financial reasons – Recognition and reputation as a responsible operator Recognition and reputation as a responsible operator

build trust with regulators and key stakeholders. build trust with regulators and key stakeholders.

Source: Shell.com

1717

Why worry?Why worry?

Much of the Earth’s Much of the Earth’s great biodiversity is great biodiversity is rapidly disappearing, rapidly disappearing,

Earth is now faced with Earth is now faced with the most severe the most severe extinction episode since extinction episode since the event that drove the the event that drove the dinosaurs to extinction dinosaurs to extinction 65 million years ago. 65 million years ago.

Species are being lost to Species are being lost to extinction at estimated extinction at estimated rate of three species rate of three species every hour. every hour.

Source:"Biodiversity," Microsoft® Encarta® Online Encyclopedia 2004 Shell.com

1818

What is being done by What is being done by society?society?

The world has responded to the possible The world has responded to the possible loss of biodiversity and taken actionloss of biodiversity and taken action

Before governments, Before governments, non-non-governmental organizationsgovernmental organizations (NGO’s) (NGO’s) grew aware of the issue. grew aware of the issue.

NGOs focused on biodiversity NGOs focused on biodiversity conservation.conservation.– World Conservation UnionWorld Conservation Union (IUCN) (IUCN) – World Wide Fund for NatureWorld Wide Fund for Nature (WWF) (WWF)

Source Shell.com

1919

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 IINational Park: protected area managed mainly for ecosystem protection and recreation

CATEGORY IIINatural Monument: protected area managed mainly for conservation of specific natural features

CATEGORY IVHabitat/Species Management Area: protected area managed mainly for conservation through management intervention

CATEGORY VProtected 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

:

Source: www.unep-wcmc.org

2020

Why should you care Why should you care about IUCN categories?about IUCN categories?

The ICUN passed a The ICUN passed a recommendation at its 2000 recommendation at its 2000 Conservation Congress. It called Conservation Congress. It called upon governments to prohibit upon governments to prohibit mining (including oil and gas mining (including oil and gas operations) from protected areas operations) from protected areas in ICUN categories I-IVin ICUN categories I-IV

Source SPE : 86577

2121

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 IINational Park: protected area managed mainly for ecosystem protection and recreation

CATEGORY IIINatural Monument: protected area managed mainly for conservation of specific natural features

CATEGORY IVHabitat/Species Management Area: protected area managed mainly for conservation through management intervention

CATEGORY VProtected 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

:

Source: SPE 86577

2222

Issues with IUCN Issues with IUCN protected areasprotected areas ICUN has been advocating a global system for classifying ICUN has been advocating a global system for classifying

protected areasprotected areas Some organizations are using the categories to determine Some organizations are using the categories to determine

land use options and push companies to adopt the ICUN land use options and push companies to adopt the ICUN 2000 resolution and make blanket prohibitions about where 2000 resolution and make blanket prohibitions about where they will not operate.they will not operate.

This was not the intent of the categoriesThis was not the intent of the categories If the system is to be taken up by governments and provide If the system is to be taken up by governments and provide

a level playing field it will need to be modifieda level playing field it will need to be modified The categories could be strengthened by introducing a The categories could be strengthened by introducing a

consistent, open, transparent and inclusive process consistent, open, transparent and inclusive process involving key stakeholders such as local communities, involving key stakeholders such as local communities, government agencies, and industry.government agencies, and industry.

Just as NGOs are stakeholders about energy projects, Just as NGOs are stakeholders about energy projects, industry should be seen as a legitimate stakeholder in industry should be seen as a legitimate stakeholder in designation of protected areas.designation of protected areas.

Source: SPE 86577

2323

Key threats to Key threats to biodiversity biodiversity

Habitat lossHabitat loss Changing land useChanging land use Over harvesting/exploitationOver harvesting/exploitation Alien speciesAlien species PollutionPollution Climate changeClimate change Human population growthHuman population growth TheThe potential threat from oil and potential threat from oil and

gas developmentgas development – Long-term energy scenarios show global energy demand Long-term energy scenarios show global energy demand

expecting to triple or even quadruple by the year 2050. A expecting to triple or even quadruple by the year 2050. A significant portion of this demand is expected to be met with oil significant portion of this demand is expected to be met with oil or gas.or gas.

Source: Shell.com

2424

Biodiversity and the Biodiversity and the oilfieldoilfield

2525

Impacts of the oil and Impacts of the oil and gas industrygas industry Oilfield range of negative direct impacts on species Oilfield range of negative direct impacts on species

and ecosystems, such as:and ecosystems, such as:– Soil, air and water contamination, Soil, air and water contamination, – Habitat fragmentation, Habitat fragmentation, – Deforestation and erosion. Deforestation and erosion.

Oil and gas development in undeveloped areas can Oil and gas development in undeveloped areas can also indirectly lead to further secondary impacts, also indirectly lead to further secondary impacts, resulting in:resulting in:– Immigration and spontaneous settlement, Immigration and spontaneous settlement, – Land conversion for agriculture, Land conversion for agriculture, – Building of infrastructure. Building of infrastructure.

Many of the direct primary impacts of an oil or gas Many of the direct primary impacts of an oil or gas project can be reduced (if not fully overcome) through project can be reduced (if not fully overcome) through careful management and technology. Some of the careful management and technology. Some of the secondary impacts present a larger challenge to secondary impacts present a larger challenge to industry and to society as a whole. industry and to society as a whole.

Source Shell.com

2626

Industry management techniques Industry management techniques to enhance biodiversityto enhance biodiversity

Address biodiversity issues early on Address biodiversity issues early on Consult with biodiversity expertsConsult with biodiversity experts Integrating biodiversity into the impact Integrating biodiversity into the impact

assessment process assessment process Carry out Biodiversity Baseline Assessment Carry out Biodiversity Baseline Assessment

and Monitoring Studiesand Monitoring Studies Following up impact assessment with Following up impact assessment with

management systems management systems Build biodiversity into performance monitoringBuild biodiversity into performance monitoring Establishing a Biodiversity Working GroupEstablishing a Biodiversity Working Group Providing communication tools to help raise Providing communication tools to help raise

internal awareness internal awareness

Source:Shell.com

2727

Methods of advancing Methods of advancing biodiversity protection on a biodiversity protection on a project basisproject basis Minimize dischargesMinimize discharges Minimize Foot print Minimize Foot print Minimization of habitat disturbance,Minimization of habitat disturbance, Creating new habitat to offset habitat Creating new habitat to offset habitat

taken during operations, taken during operations, Prevention of introduction of invasive Prevention of introduction of invasive

species, species, Restricting development of new areas Restricting development of new areas

through controlled access. through controlled access.

Source Shell.com

2828

Two visions of current Two visions of current oilfield practicesoilfield practices

Bp.com

The Wilderness Society

2929

Habitat fragmentation as a Habitat fragmentation as a function of roads servicing function of roads servicing an oilfieldan oilfield

Direct impacts 4% 250 Ft zone = 52% ¼ mile = 97%

3030

Case histories of Case histories of biodiversity biodiversity management in management in exploration and exploration and development projectsdevelopment projects

3131

Case histories of Case histories of biodiversity protectionbiodiversity protection

Management of E&P operations in Management of E&P operations in mangrove ecosystem (Indonesia)mangrove ecosystem (Indonesia)

Management of pipeline Management of pipeline installation. (NW shelf of Western installation. (NW shelf of Western Australia)Australia)

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Indonesia case historyIndonesia case history

Operational situation:Operational situation:– Operating production operation in dense mangrove area for 30 years.Operating production operation in dense mangrove area for 30 years.– Operations cover 2% of the delta plain areas.Operations cover 2% of the delta plain areas.

Social situation:Social situation:– 5 districts, many villages, 50,000 total inhabitants. 5 districts, many villages, 50,000 total inhabitants. – Previously used trawl nets from fishing that were prohibited in the 1980’sPreviously used trawl nets from fishing that were prohibited in the 1980’s

Population switched form fishing to shrimp culture in the 1980’s culture. Population switched form fishing to shrimp culture in the 1980’s culture. Currently have 73% of the mangrove system in shrimp culture.Currently have 73% of the mangrove system in shrimp culture.

Biodiversity challenge:Biodiversity challenge:– In the last decade, rapid increase of local population and deforestation In the last decade, rapid increase of local population and deforestation

due to shrimp culture development.due to shrimp culture development.– Impacts to the mangrove ecosystem have caused degradation of water Impacts to the mangrove ecosystem have caused degradation of water

quality, decreasing shrimp and fish productivity ,increasing occurrence of quality, decreasing shrimp and fish productivity ,increasing occurrence of disease on shrimps, increases in erosion, coastal abrasion.disease on shrimps, increases in erosion, coastal abrasion.

– Land disputes with shrimp farmers.Land disputes with shrimp farmers.– In the occurrence of increased shrimp disease and decreasing harvest In the occurrence of increased shrimp disease and decreasing harvest

the local population had a tendency to place blame on the exploration the local population had a tendency to place blame on the exploration and development operation.and development operation.

3333


Operational management steps:Operational management steps:– Minimize land clearing for operationsMinimize land clearing for operations– Re-vegetate cleared landRe-vegetate cleared land– Conduct shrimp pond training for local populationConduct shrimp pond training for local population– Construct shrimp pond pilot project that preserved Construct shrimp pond pilot project that preserved

mangrovesmangroves Management of social environmentManagement of social environment

– Participate in community developmentParticipate in community development– Develop system for management of environmental Develop system for management of environmental

claimsclaims– Promotion of community environmental awarenessPromotion of community environmental awareness– Involvement of local community in exploration and Involvement of local community in exploration and

development operations.development operations.

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Results of management efforts:Results of management efforts:– The programs have been successful and the relationship The programs have been successful and the relationship

between the company and the community has improved.between the company and the community has improved.– Through participation in environmental awareness the Through participation in environmental awareness the

local community has gained knowledge in the methods local community has gained knowledge in the methods of sustainable management of shrimp culture activities of sustainable management of shrimp culture activities and mangrove preservation.and mangrove preservation.

– Besides being involved in monitoring process the local Besides being involved in monitoring process the local community are also employed in the E&P industry community are also employed in the E&P industry according to their skill level.according to their skill level.

Conclusion:Conclusion:– E&P operations in sensitive social and mangrove E&P operations in sensitive social and mangrove

ecosystem requires an integrated approach to minimize ecosystem requires an integrated approach to minimize social and environmental impacts.social and environmental impacts.

– The actions take have also improved communication The actions take have also improved communication with communities as well as solving disputes and claims.with communities as well as solving disputes and claims.

Source: SPE 56578

3535

Offshore Australia case historyOffshore Australia case history

Operational situation:Operational situation:– Lay two pipelines in the North West Shelf Lay two pipelines in the North West Shelf

of Western Australiaof Western Australia– Use of barge with 8 anchors to lay pipe Use of barge with 8 anchors to lay pipe

Biodiversity challenges:Biodiversity challenges:– Sensitive coral resourcesSensitive coral resources

237 sensitive seafloor areas along first pipeline 237 sensitive seafloor areas along first pipeline route, route,

1,150 sensitive seafloor areas along the second 1,150 sensitive seafloor areas along the second pipeline routepipeline route

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Management steps: Management steps: Novel application of remote sensing data.Novel application of remote sensing data. Development of effective method of mapping seafloor Development of effective method of mapping seafloor

resources using GIS systemresources using GIS system Extensive route planning that considered avoidance of Extensive route planning that considered avoidance of

sensitive areas.sensitive areas. Innovative anchor management systemInnovative anchor management system Computer navigation system for barge.Computer navigation system for barge. Real time diver monitoring of anchor locationsReal time diver monitoring of anchor locations Development of monetary incentive program for Development of monetary incentive program for

contractor measured against a numerical target for contractor measured against a numerical target for damage to coral areas.damage to coral areas.

Awareness training for operational personnelAwareness training for operational personnel

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Results of management steps:Results of management steps:– After 786 anchor moves:After 786 anchor moves:– 2 our of 237 areas slightly damaged on first 2 our of 237 areas slightly damaged on first

pipeline route.pipeline route.– 2 out of 1,150 areas slightly damaged on second 2 out of 1,150 areas slightly damaged on second

pipeline routepipeline route Conclusions:Conclusions:

– By demonstrating through performance that the By demonstrating through performance that the industry can preserve the natural environment the industry can preserve the natural environment the regulators and wider community are provided regulators and wider community are provided confidence that the petroleum industry can contine confidence that the petroleum industry can contine to develop oil and gas resources in sensitive to develop oil and gas resources in sensitive marine environments.marine environments.

Source : SPE 86581

3838

Additional Additional opportunities in the opportunities in the oilfieldoilfield Waste minimization Waste minimization Beneficial reuse of drilling fluids Beneficial reuse of drilling fluids

and cuttingsand cuttings Use of directional and extended Use of directional and extended

Reach drillingReach drilling Management techniques for Management techniques for

reduction of road impactsreduction of road impacts

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Directional and Directional and extended reach extended reach drillingdrilling Specifically identified and Promoted in Specifically identified and Promoted in

the National Energy Policy Chapter 5 the National Energy Policy Chapter 5 “Energy for a New Century”“Energy for a New Century”

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Beneficial reuse of drill Beneficial reuse of drill cuttingscuttings

Bean Study Biomass

0

1

2

3

4

5

6

7

top soil agriculturallyactive

non-agriculturallyactive

10% treateddiesel cuttings in

topsoilSoil Types

Biom

ass

(g)

0% 10% Treated cuttings 25% Treated cuttings

4141

ConclusionsConclusions

The issue of biodiversity is going to become The issue of biodiversity is going to become increasingly important to E&P operations.increasingly important to E&P operations.

Operators are currently developing technology Operators are currently developing technology and management systems around the world and management systems around the world that allow for E&P operations in sensitive areas that allow for E&P operations in sensitive areas will mitigate impacts on biodiversity resources.will mitigate impacts on biodiversity resources.

Biodiversity protection can have many Biodiversity protection can have many pathways pathways ( camel usage to monetary incentives for ( camel usage to monetary incentives for contractors)contractors)

Taking a seat a the table with NGOs to becomeTaking a seat a the table with NGOs to become more a more a part of the solution and less a part of the part of the solution and less a part of the problem will result in a greater long term problem will result in a greater long term business success. business success.

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ConclusionsConclusions

Ignoring biodiversity issues and Ignoring biodiversity issues and failing to integrate biodiversity failing to integrate biodiversity protection measures will result in:protection measures will result in:– Degraded company reputationsDegraded company reputations– Aggressive efforts by NGOs to stop all Aggressive efforts by NGOs to stop all

drilling and production efforts in drilling and production efforts in disputed regions.disputed regions.

– Damage to biodiversity resources for Damage to biodiversity resources for future generations.future generations.

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The futureThe 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.

Final ThoughtFinal Thought

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1 Understanding Biodiversity Protection Opportunities in the Oil and Gas Industry John Candler P.E.

Documents

marine biodiversity

possible loss of biodiversity

earths great biodiversity

land source

endangered species

biological diversity

geology department

environmental department