For decades, humanity has relied on the oil and gas industry, but things are slowly changing. According to Deloitte's 2020 Oil and Gas Industry Outlook mid-year
report, weakening
economic growth, trade tensions, and global political risks are the biggest
challenges that the sector is facing. At the same, with increased awareness on
the environmental impact of the oil and gas industry, company executives need
to remain vigilant and consider two long-term interests: the interest of the planet, and the interest of people who have homes next to drilling sites.
Statistically, the oil and gas industry accounts for 42% of global
emissions, and if
they want to reach 2050 targets, they need to reduce emissions by at least 3.4
gigatons of carbon-dioxide equivalent. It's not an easy task and, to a certain
extent, the association between sustainability and the oil and gas industry may
seem unlikely. However, companies are facing increased pressure to move on from
outdated methods and implement eco-friendly alternatives where possible.
Moving drilling sites at least half a mile from homes
In the US, there is no federal
standard for the placement of oil and gas drills, so no less than 17.6 million people live within one mile from a drill. Then, there are drills placed next to large
buildings, such as schools and hospitals. For the people living in these
regions, quality of life is a major concern: they're afraid of the health risks
of exposure to dangerous pollutants, about the poor air quality, and about the
resellability of their homes. Noise levels are also higher than normal next to
fracking sites, with many people reporting that they can't even have a normal
conversation in their backyard. Most drilling sites weren't there when they
moved in; they were added later, and locals had no say in it. NGOs are
currently trying to convince legislators that state and municipal setback
distances should be established based on the immediate quality of life
concerns.
More transparency
The oil and gas industry is huge
and, considering the recent controversy that it was involved in, it can only
move forward by embracing accountability and adopting more transparent
practices. People know how much oil and gas contribute to pollution, and it's
normal for them to want to know how companies are attempting to fix that. For
example, ExxonMobil and Pioneer have faced a lot of pressure for environmental
groups on the topic of pollution, which is why they've started publishing
sustainability reports since 2017. These reports include essential details such
as carbon emissions, volunteering initiatives, and investments in the renewable
sector. In the meantime, other companies, such as Shell and OMV, have also
started to publish sustainability reports, and this practice has become the
norm. The International Association of Oil and Gas Producers (IOGP), in
collaboration with the American Petroleum Institute (API), regularly update
their Sustainability Reporting Guidance for the Oil and Gas
industry.
Increased focus on recycling
Recycling has become
increasingly popular all over the world. With awareness at an all-time high and
many useful
guides to learn from,
the average individual knows that waste is harmful to the environment, that we
need to stop relying on the landfill, and how to apply the reduce-reuse-recycle
hierarchy in day-to-day life. As a response to higher public pressure,
businesses from all fields have started to adopt more sustainable waste
management measures and oil and gas are no exception.
Of course, recycling oil and gas
byproducts is more complicated than recycling paper, metal, or plastic, but
measures can be taken. For example, some oil and gas companies have started to
use techniques that reduce the number of resources used during production and
convert used oil into diesel. Or, they can use specialized equipment that
reduces the amount of water they need. There are even biological alternatives
such as iron-reducing bacteria, which allow water to be recycled.
Giving back through volunteering
At present, it's impossible for
drilling to be 100% green, and even companies that have the best intentions
can't change their operations entirely. However, they can fix part of the
damage caused by the oil and gas industry by volunteering in nature programs
and giving back to the community. Thankfully, there are many ways to volunteer:
●
Cleaning
the ecosystem to enhance living standards for local communities
●
Introduce
renewable energy schemes
●
Local
wildlife projects to rehabilitate endangered species
●
Initiating
awareness programs
Using technology to identify wasteful practices
According to a 2017 report, oil
platforms were only functioning at 77% of their potential. Integrating
analytics and other new technologies into their operations can not only deliver
better performance but also identify the processes that produce the most waste
and start thinking of solutions to fix them. For example, dedicated software
can determine what processes can be carried out with fewer investments and
resources, without compromising on quality. In the end, it's a win-win
situation because companies in the oil and gas industry can manage to save
money without contributing as much to pollution.
Investing in renewable energies
Renewable energy doesn't produce greenhouse emissions and thus
reduces air pollution. It also reduces dependence on fossil fuels, creates
jobs, and empowers local communities. What does this have to do with oil and
gas companies, which to some might seem like the complete opposite? Well, if we
look at the sustainability reports of some of the oil and gas giants, we'll see
that most of them have started to invest heavily in renewable energy. Considering
its long-term potential, it's important to acknowledge it and sustain its
development. This way, they are learning how to develop cleaner solutions
themselves and contribute to the transition towards a safer, healthier planet.