How can you incorporate life cycle assessment into oil and gas operations?

LCAs are important to understand the environmental impact of any inventory/product throughout its lifetime. LCA can be broadly categorized to 4 stages, 1) cradle-to-gate (impact from production, and processing), 2) total upfront (impact until delivery), 3) use stage (impact during use) and, 4) cradle to grave (impact from extraction up until disposal). All products have different impact on environment. Example: For transportation of 'petroleum and fuels', if carriers used are conventional (petroleum-based carriers) GHG released is 5X of extraction. - IPIECA (workshop on Life-cycle GHG emissions of transportation fuels) For nuclear products, the end-of-life treatment and disposal is so deadly that it makes their use unfeasible.

Utilising LCA in oil and gas operations provides a holistic perspective on operations and opportunities to mitigate environmental impacts and boost market competitiveness. Consumers favour companies with strong sustainability initiatives, driving brand reputation and market positioning. LCA can aid in long-term resilience, regulatory compliance, and stakeholder satisfaction, fostering the industry's sustainable evolution.

As the article suggests, the main challenges are Data, Data and Data! Comprehensive and reliable data across the entire life cycle of an asset is challenging. The means of collecting the data can differ and the equipment used could introduce inaccuracies etc. Therefore, it is imperative to incorporate these considerations in the early stages of the project's inception to ensure standardization and consistency in the data. Another area that proves challenging at times in LCA methodologies is the use of numerous assumptions that introduce more variability and uncertainty into the results. These assumptions at times can compound errors and greatly affect the margin of errors in the assessments.

LCA in oil and gas (O&G) plays a crucial role in decarbonization. Globally, >50% of primary energy is sourced via oil and gas and this sector is responsible for >60% of CO2 emissions (IEA Oil and Gas Industry in Energy Transitions). Finding out how much energy goes through each process is crucial to reducing emissions. For example, most companies reporting emissions, don't know the WTT (well-to-tank) emissions factors for any fuel. This is primarily due to missing LCAs from O&G operations. Doing an analysis of their operations is crucial for O&G companies as this reduces regulatory risks and can end up saving operational costs. Regulations like Carbon Tax in Singapore (primarily for electricity generators) posses a huge risk.

The benefits of LCA are numerous in today's volatile business landscape. To name a few, it enables oil and gas operators to assess their environmental impacts, achieve sustainability goals and gain competitive advantage. It's imperative from environmental, economic and social perspectives. By integrating LCA into their ESG efforts, operators can make great strides in developing more sustainable and effective solutions to produce oil and gas, which in turn will serve to enhance their public perception and social responsibility.

An interesting story from 'ADNOC': ADNOC's groundbreaking waste heat recovery project, worth US$ 600 million, is set to revolutionize the General Utilities Plant in Ruwais. By repurposing heat from the site, it will power new turbines, adding 62,400 cubic meters of distillate water and 230 megawatts of power daily. Slated for completion in 2023, this initiative will enhance thermal efficiency by 30% and reduce grid dependence. This aligns with ADNOC's 2030 strategy, vitalizing Ruwais' industrial complex. Source: IPIECA Impact Stories