Petroleum Developments Research Articles

Australia’s regulation of scope 3 emissions

Greenhouse gas (GHG) emissions occur throughout the value chain of petroleum developments, including scope 3 emissions, which occur because of activities related to a development but not controlled or owned by that facility’s business. Scope 3 emissions are created predominately by using hydrocarbon products produced by Australia’s petroleum industry. The Australian petroleum industry is subject to a structured and robust regulatory framework to manage environmental impacts. Recently, scope 3 emissions from Australia’s petroleum sector are facing greater regulatory scrutiny. There are a number of drivers for scope 3 emissions regulation, including: Environment Protection and Biodiversity Conservation Act 1999 (Cth) section 527E indirect consequences of an action. Western Australian Draft revised Environmental Factor Guideline – Greenhouse Gas Emissions. These mechanisms provide Australian regulators the ability to enforce project proponents to manage their scope 3 emissions. Some measures that project proponents use to meet these requirements are: Assist the upstream supply network (e.g. regasification and distribution) to implement fugitive methane emissions reduction measures such as the Methane Guiding Principles; Undertake an annual review of indirect emissions; and Collaboratively work with customers to reduce emissions. This creates a project-centric approach to scope 3 emissions management. This paper explores regulation of scope 3 emissions, the impacts this regulatory approach has on project proponents and customers, whilst also considering alternative mechanisms to manage these emissions and meet regulatory requirements and climate goals.

An economic and policy case for development of the controversial Cambo field in the UK Continental Shelf

A raging debate currently persists regarding the future political economy of the UK Continental Shelf (UKCS) in relation to the prudence of new field developments in the province. Leading up to the COP26 global summit in November 2021, this debate had sharply centred on the pending application for consent to develop the Cambo field in the West of Shetland region of the province. Opposers of the field have called for a rejection of the application for consent to develop the field, citing the recent IEA and UN IPCC reports urging significant reductions in petroleum developments globally. Proponents of the field however argue that oil and gas remain vital to UK energy security as it transitions to net-zero; an argument that has been bolstered by the dynamics of the energy industry since the commencement of the Russia-Ukraine war and the resulting geopolitical fallouts and supply chain disruptions. This paper examines the commercial viability of the Cambo field to make an economic and policy case for its development. I recommend that owing to its high economic viability and low carbon intensity, the UK Government should consider approving the application for consent to develop the field, contingent on a stringent carbon emissions reduction programme for the field being implemented. This recommendation is consistent with a ‘just’ approach to energy transition, as well as the UK's policy of maximising economic recovery (MER) from the wider UKCS sector.

Balancing Environmental Protection and Offshore Petroleum Developments in Guyana

This paper reviews Guyana's challenge to regulate the new petroleum sector. The need to amend several pieces of legislation to be aligned with the Aichi targets for 2020 under the Convention on Biological Diversity are examined. Aichi Target 11 provides that ‘by 2020, at least 17 per cent of terrestrial and inland water areas and 10 per cent of coastal and marine areas, especially areas of particular importance for biodiversity and ecosystem services, are conserved through effectively and equitably managed, ecologically representative and well-connected systems of protected areas and other effective area-based conservation measures, and integrated into the wider landscape and seascape.’ The Government of Guyana's Green State Development Strategy which has sustainable development at its core is also examined along with several environmental law principles. The Green State Development Strategy and several environmental law principles are discussed to highlight their relevance to the protection of the marine environment and biodiversity conservation. Several recommendations are made to highlight relevant laws which should be updated for the State to achieve the right balance regarding protection of the environment and sustainable management of offshore petroleum projects in line with the obligations under the Convention on Biological Diversity.

Learnings from recent offshore project proposal submissions

The offshore project proposal (OPP) process was introduced in 2014 as part of the streamlining of regulatory processes under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and Environment Protection and Biodiversity Conservation Act 1999 to provide for offshore petroleum developments to be assessed early in the project lifecycle. The OPP process involves the assessment of environmental impacts and risks of petroleum activities conducted over the life of an offshore project by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). An OPP for an offshore project must be accepted by NOPSEMA before a titleholder can submit environment plans for activities that make up the offshore project. Although the OPP process is not new, it has proven complex to navigate, with four revisions to the OPP contents requirements guideline published by NOPSEMA since inception, and only three OPPs reaching the public consultation stage to date. An OPP is required to describe the offshore project; describe the environment that may be affected by the project; set out environmental performance outcomes for the project; describe feasible alternatives to the project or its activities; and evaluate environmental impacts and risks of the project. This paper provides insight to the OPP drafting, submission and assessment process, with shared key learnings based on actual examples of OPP submissions made. In particular, we will focus on the crucial elements that haven proven to make an OPP submission effective, including project aspect scoping, understanding relationships between aspects and receptors, building flexibility within set project boundaries and demonstrating acceptability.

Beyond concensus: perceptions of risk from petroleum developments in Lofoten, Vesterålen, and Senja, Norway

Beyond concensus: perceptions of risk from petroleum developments in Lofoten, Vesterålen, and Senja, Norway

Beyond consensus: perceptions of risk from petroleum developments in Lofoten, Vesterålen, and Senja, Norway

Abstract The proposed petroleum developments in the Lofoten, Vesterålen, and Senja are a controversial issue in Norway. We ask how insights into legitimacy and risk perception can help to illuminate the disputed policy process for petroleum developments in Lofoten, Vesterålen, and Senja. Our Q-methodology elicits three key narratives that steer the policy process: (i) best practice and knowledge does not permit coexistence, and fishing takes priority; (ii) coexistence is possible with good process where the nation-state manages risk; and (iii) the state and industry cannot facilitate coexistence, science and conservation come first. We argue these narratives reflect divergence in worldview in three key ways: (i) differential perspectives on the priority of local, national, and global scales; (ii) emphasis on the role of knowledge, skill, and rectitude in finding best policy; and (iii) differential concern for fish, the nation-state, and conservation. We argue for a more realistic approach to coexistence in deliberative democracy that does not aim for consensus and win-win outcomes, and assert that disagreement and partial victories and losses is a natural and healthy state of affairs in a democracy.

Arctic petroleum’s community impacts: Local perceptions from Hammerfest, Norway

This article examines perceptions of petroleum developments in the Norwegian Arctic town of Hammerfest, especially in the context of Corporate Social Responsibility (CSR). Based on eighteen semi-structured interviews conducted in Hammerfest, the perceived effects of petroleum developments are identified and discussed. Local support for petroleum activity is high, particularly given the upsurge in job opportunities and economic ripple effects, both of which are considered essential to the community's survival. Environmental concerns and opposition to oil and gas are largely ascribed to external forces and do not feature as much in the locals’ perceptions. While CSR is not part of the interviewees' vocabulary, the local population has clear expectations and views about petroleum companies' responsibilities to their community. In order to grasp the full picture of the Arctic petroleum debate, it is important to acknowledge that expectations, desires, and reality on the ground will sometimes diverge strongly from non-local considerations.

Diversity of marine ascomycetes from the disturbed sandy beaches of Tabasco, Mexico

The coastline of Tabasco State in the Gulf of Mexico represents a highly deteriorated ecosystem, where densely populated human settlements and large offshore petroleum developments are negatively affecting the marine biodiversity. Previous work on marine ascomycetes reported that in the Gulf of Mexico the diversity of these fungi might be threatened by anthropogenic activities. Therefore we evaluated the diversity of marine ascomycetes in this area, and registered 19 taxa.Ceriosporopsis capillaceawas recorded for the first time for Mexico. The highest diversity was obtained in the beach of Sánchez Magallanes, which receives a great quantity and diversity of organic remains originating from El Carmen/Machona mangrove forests via the Santa Ana mouth, benefiting the proliferation of marine fungi. The lowest diversity was documented in the beach of Paraíso, which is close to the delta of one of the most polluted rivers in Mexico and to off-shore oil extraction platforms. We found a significant correlation between the community composition and abundance, implying that the overall abundance is defined by the community structure, perhaps as a result of competition. Additionally, our results indicated that there is no relationship between the grain size and the biodiversity observed.

Norwegian–Russian cooperation on oil-spill response in the Barents Sea

Abstract The risks of oil pollution in the Barents Sea have grown substantially in recent years, triggered by ongoing and projected petroleum developments and increased oil transportation. This study examines the bilateral oil-spill response (OSR) regime established by Norway and Russia to provide mutual assistance in combating accidents caused by oil pollution. The article examines the structure and functioning of the regime, discussing its effectiveness analytically in terms of regime outputs, outcomes, and impacts, and the interplay between the political and profession-based aspects of the regime. This Norwegian-Russian OSR cooperation in the Barents Sea has developed into an effective bilateral regime. The general framework for cooperation, the roles and functions of the cooperating parties, and the operative coordination procedures in an emergency situation have been established through a set of formal institutional procedures. These procedures have been followed up by the parties and practiced regularly through bilateral and multilateral training exercises. Although the regime has not had to be activated, the results of the exercises and interview data indicate mutual satisfaction with the practical aspects of the cooperation and shared confidence in successful joint OSR operation. This article further explains the evolution of this effectiveness through analysis of the political and profession-based constituents of the regime. The limited political dynamic of the regime has ensured stability as well as facilitating the development of professional relations between representatives of the agencies dealing with operational issues. Therefore, the effectiveness of the Norwegian–Russian OSR regime has been a function of both political stability and professional-level achievements contingent on developments in the political processes.

Interorganizational coordination in oil spill emergency response: a case study of the Murmansk region of Northwest Russia

Projected petroleum developments and an increase in maritime oil transportation in the Russian Arctic have raised awareness regarding the need for an effective oil spill emergency response (OSER) system. This paper examines the OSER system in the Murmansk region of Northwest Russia. The system comprises of multiple federal, regional and private organisations with functionally specified tasks. Coordination among the organisations becomes a prerequisite for the system as a whole to function. The study first discusses the different forms of formal and informal coordination mechanisms that are at play in the OSER system. Second, it analyses how the interdependencies in the OSER system affect organisational behavior, in terms of coordination or competition. We first conclude that while formal coordination mechanisms provide structure to the system, informal mechanisms facilitate the formal mechanisms and may compensate for shortcomings. Second, there is a sense of commonality of purpose related to being part of an OSER system that facilitates coordination. Meanwhile, the commercialisation of OSER services impedes coordination, in particular between response providing organisations. This is aggravated by gaps and overlaps in federal laws and policies. However, informants are positive regarding the system's ability to respond effectively in case of an oil spill.

2008 Environment updates

This paper provides a brief update on some of the key environmental issues that arose during 2008. Liquefied Natural Gas (LNG) projects dominated the referrals for petroleum related projects made under the Environment Protection and Biodiversity Conservation Act 1999 during the 2008 calendar year. The environmental aspects of these projects are summarised. The focus of the Federal Government on policy and legislation to meet greenhouse gas abatement commitments in response to climate change has resulted in the development of a number of key policies that will impact on petroleum and gas developments. This has also been reflected in policy and legislation at State levels. The first reporting period for the National Greenhouse and Energy Reporting Act 2007 started on 1 July 2008. Carbon capture and storage capability is seen as an essential component of any low emission energy future. Legislation and policy need to be delivered in a timeframe to meet low emission deadlines, as this provides the framework for the implementation of technology. Key legislation was debated and delivered during 2008, but the administrative and regulatory framework is still in preparation. Several projects for which geosequestration is a key component are summarised. Regulatory review has suggested that streamlining of approvals and removing duplication of approvals would decrease the significant delays some projects are experiencing. Regulation that is outcomes based rather than process driven and prescriptive will also facilitate more timely approval of projects.

VALUING THE ENVIRONMENTAL COSTS OF VEGETATION REMOVAL AND ECOSYSTEM DISTURBANCE ASSOCIATED WITH PETROLEUM OPERATIONS, COOPER BASIN, SOUTH AUSTRALIA

This paper describes the results of a small-scale study that looked at an alternative way of managing the environmental impacts of petroleum developments. The study was based on a contention that an application of the contingent valuation method (CVM) in the context of petroleum developments might assist the petroleum industry in achieving the goals of ecologically sustainable development (ESD), while contributing to the change of the community’s attitude towards the industry. CVM, based on direct community involvement in determining the environmental costs of the native vegetation removal associated with the petroleum developments in the South Australian Cooper Basin, was applied to the selected ‘groups of interest’. The collected data were analysed and discussed in light of the feasibility of a full-scale CVM study, and its potential practical value both for the petroleum companies operating in the Cooper Basin and the regulatory state government authorities. The results of this study showed that the application of CVM in the context of the petroleum industry might yield significant benefits for the industry in terms of ESD. In the long term, it may assist in changing the community’s perception of the petroleum industry. This approach does not intend to contradict, but to complement, the current environmental management practices of the petroleum developers.

Directional frequency and recording (DIFAR) sensors in seafloor recorders to locate calling bowhead whales during their fall migration.

Bowhead whales, Balaena mysticetus, migrate west during fall approximately 10-75 km off the north coast of Alaska, passing the petroleum developments around Prudhoe Bay. Oil production operations on an artificial island 5 km offshore create sounds heard by some whales. As part of an effort to assess whether migrating whales deflect farther offshore at times with high industrial noise, an acoustical approach was selected for localizing calling whales. The technique incorporated DIFAR (directional frequency and recording) sonobuoy techniques. An array of 11 DASARs (directional autonomous seafloor acoustic recorders) was built and installed with unit-to-unit separation of 5 km. When two or more DASARs detected the same call, the whale location was determined from the bearing intersections. This article describes the acoustic methods used to determine the locations of the calling bowhead whales and shows the types and precision of the data acquired. Calibration transmissions at GPS-measured times and locations provided measures of the individual DASAR clock drift and directional orientation. The standard error of the bearing measurements at distances of 3-4 km was approximately 1.35 degrees after corrections for gain imbalance in the two directional sensors. During 23 days in 2002, 10,587 bowhead calls were detected and 8383 were localized.

Iran: Review of Petroleum Developments and Assessments of the Oil and Gas Fields

Article de synthese sur l'economie et la politique petrolieres de l'Iran, de 1979 a 2000 : etat des decouvertes de champs de petrole et de gaz, de la production, des relations avec les compagnies petrolieres etrangeres, du raffinage, du traitement du gaz et des exportations.

An Approach to Economic Evaluation of the Profitability of Joint Venture Petroleum Exploration and Developments in the Ussr

An Approach to Economic Evaluation of the Profitability of Joint Venture Petroleum Exploration and Developments in the Ussr

The sharing of petroleum resources; resource poverty and richness around the North European Seas with special reference to the Norwegian position

The article compares the national energy policies of the countries around the North Sea and the recent development in energy consumption and production. In Northern Europe only Norway has a large energy surplus for export, and it continues to stand outside the EU after its second “No” to membership in the 1994-referendum. Will this mean reduced production to conserve the resources? Are energy policies in the countries around the North Sea determined by the longterm national interests? The conclusion is made that in the initial phases the offshore petroleum developments were, to a larger extent, determined by strictly national interests and policies rather than by the international market and the interests of the companies. At present, however, by the shear weight in the national economies, the companies and the market forces have obtained the leading role.

FINANCING PETROLEUM DEVELOPMENTS IN THE 1990'S

Banks in many parts of the world, including Australia, have tightened credit because of their level of loan losses in the late 1980's and early 1990's. However, recent financings of petroleum projects in this region indicate that the banks' appetite for such lending has not been adversely affected. In fact, banks which lent to Australian petroleum projects in the 1970s and 1980s have generally not only had a return on their money but have also had the return of their money.The funding requirements for Australian petroleum developments in the 1990s and beyond appear considerable. It is expected that there will be keen competition from the banking sector to supply these funds.The need to properly assess and mitigate the risks inherent in such developments will continue, if not heighten, as advanced technology, often in hostile environments, is required to develop more marginal fields.In so far as oil price, foreign exchange and interest rate risks are concerned, there is likely to be a growing emphasis by banks on managing risk so as to contain what historically have been high levels of volatility. A number of products have been developed by banks to manage these risks and if correctly applied they can also serve to reduce risk. There is some cost, however this can be offset by application of the same bank products. By reducing risk it is also possible to obtain higher levels of debt.

The Effects Of Technology And Basin Specific Learning On The Discovery Rate

Abstract Technological innovation and basin specific learning are identified as potential sources of improvement in the discovery rate. Examples of both exist in the drilling history of Canada's Scotian Shelf This paper presents an historical analysis of the impacts of both on the Shelf's discovery rate. This was accomplished using a simulation modelling framework that treats the probability of discovering a natural gas pool as proportional to pool size. The model includes a discovery efficiency parameter which measures the geologic learning and technological sophistication of exploration firms. Repeated simulations allow the calculation of discovery efficiency parameters at discrete points in the exploration history of the Shelf. These, in turn, were used to measure the impact of technological innovation and increments in basin specific learning in the context of the Scotian Shelf's exploration history. Introduction Technological innovation during the 1970s and 1980s changed the methods of exploring, developing and producing petroleum resources. It will continue to play an important role in determining the character and pattern of future petroleum developments, particularly as the industry begins to rely increasingly on the resources located in frontier areas. Work to date on the impacts of technological innovation has focussed on its effects on drilling costs(1–4). These studies concluded that technological change during the 1950s and 1960s more than kept pace with the tendency of the oil and gas industry to move toward the exploration and development of more costly resources. Technological innovation, however, affects more than drilling costs. Rensburg and Malik(5) have suggested that technological change may be divided into two categories:changes in exploration technology; andchanges in drilling technology. Changes in exploration technology tend toward increasing the quantity of resources discovered, increasing the discovery rate, and lowering discovery costs. Changes in drilling technology tend toward lowering the costs associated with exploration and extraction, and can affect the discovery rate by putting previously unavailable resources within technological and economic reach. Technology, however, is not the only source of potential improvement in the discovery rate. Ryan(6) postulated that the rate at which oil is discovered is proportional to "the amount of undiscovered oil and the knowledge of where the oil resides". When the number of completed wells in a basin is small, the geologic knowledge of the basin is also likely to be small. As more wells are drilled, firms learn progressively more about the geologic characteristics of the basin. Ultimately, knowledge of the basin's geology will no longer increase and, with the exhaustion of identified exploration prospects, drilling in the basin will come to an end. The approach is consistent with Arrow's(7) "Learning by doing" hypothesis "that technical change (here measured by the discovery efficiency parameter) in general can be ascribed to experience" and "that it is the very activity of production which gives rise to problems for which favourable responses are selected over time". Thus, accumulated experience in a given exploration environment produces the information on which future decisions can be based.

Marine conservation reserves, petroleum exploration and development, and oil spills in coastal waters of Western Australia

Conservation, petroleum exploration and development, shipping and oil spills in the marine environment can generate a volatile mix of issues and public perceptions. The progression of objectives for marine conservation and the extraction of petroleum resources from coastal waters without environmental, social or economic conflict requires the separation and evaluation of discrete issues. Data from shipping accidents and petroleum developments in Western Australia indicate that the apparent conflict between marine conservation objectives and extraction of petroleum resources is largely unsupported. Key issues are examined together with options and a strategy for resolution of conflict aimed at developing equitable policies for the establishment of marine conservation reserves, while providing for the utilization of petroleum resources without environmental conflict.

An Approach to Economic Evaluation of the Profitability of Joint Venture Petroleum Exploration and Developments in the USSR

An Approach to Economic Evaluation of the Profitability of Joint Venture Petroleum Exploration and Developments in the USSR