Integrated Water Resource Management - Can this Concept be of Value to the Oil and Gas Sector?

Abstract

Abstract Global water scarcity and deteriorating water quality are increasingly becoming limiting factors to sustainable development; "one of the most pressing issues of the next millennium will be the managmenet of the limited freshwater resources of the world" (Shrek, et al. 1998, p.1). Society and business is dependent upon the resilience of water resources and the associated ecosystem services indirectly provided. The effective management of water resources for a multiplicity of users should consider the broader context of the economic, social and political landscape. Water forms an integral part of operations for all sectors, including the oil and gas industry. With increasing pressure on this scarce resource, business continuity for the oil and gas sector could be threatened, particularly as operations are occurring more often in challenging environments and there is a growing reliance on unconventional sources that have greater water demands. In recognition of both global and local water scarcity challenges, and the multi-faceted nature of water management, a more integrated approach to water resource management is being encouraged and advocated by the UN. The concept of Integrated Water Resource Management (IWRM) encourages a more coordinated sustainable management of water resources among all water users within a river basin/aquifer. IWRM could be a valuable conceptual framework for the oil and gas sector given it has global operations and has to function in multiple different geographic and climatic contexts, across a range of jurisdictions working with different stakeholders. Given the limited knowledge and understanding on the uptake and applicability of IWRM for the oil and gas sector, this research, which has been supported by IPIECA, the global oil and gas industry association for environmental and social issues, and Kings College London, explores the uptake and applicability of IWRM for the sector. The paper will outline outcomes from a survey carried out across the corporate function of IPIECA member companies, as well as findings from interviews conducted at two oil refineries in OECD countries Australia and Germany. Opportunities for further research will be mentioned and the paper will highlight specific learnings for the sector as well as outline the business case for applying IWRM principles.