Increased productivity through waste reduction effort in oil and gas company

Abstract

National companies engaged in oil and gas activities in the upstream sector. In general, the on going operations include drilling, exploration, and production activities with the result being crude oil channelled for shipment. Production activities produce waste gas (flare) of 0.58 MMSCFD derived from 17.05% of natural gas produced. Gas flares are residual gases that have been burning through flare stacks to avoid toxic gases such as H2S and CO that are harmful to human health and the environment. Therefore, appropriate environmental management is needed; one of them is by doing waste reduction business. Through this approach, it is expected that waste reduction efforts can affect the improvement of environmental conditions while increasing the productivity of the company. In this research begins by identifying the existence of problems on the company related to the amount of waste that is excessive and potentially to be reduced. Alternative improvements are then formulated and selected by their feasibility to be implemented through financial analysis, and the estimation of alternative contributions to the level of productivity. The result of this research is an alternative solution to solve the problem of the company by doing technological based engineering by reusing gas flare into fuel for incinerator machine. This alternative contributes to the increased productivity of material use by 23.32%, humans 83.8%, capital 10.13 %, and waste decreased by 0.11%.