Environment Report 2013

ENVIRONMENT REPORT 2013

ENVIRONMENT REPORT 2013

Contents

1.

Foreword

5

2. Offshore Oil and Gas Production and the Environment 6 2.1 The Effect of Human Activities on the Environment 6 2.2 The Effect of Oil and Gas Activities on the Environment 6 2.3 Environmental Protection 7 2.4 How Environmental Management Works 7 3. Key Environmental Challenges 8 4. Management of Environmental Issues by Oil & Gas UK 9 4.1 Forums and Work Groups 9 4.2 Consultation Responses 12 4.3 Environmental Seminar 12 4.4 Environmental Legislation Website 12 4.5 Working With Our Regulators 13 4.6 Working With Other Stakeholders 13 5. Data Provision and Management 14 6. Trend Data 15 6.1 Produced Water Discharge 15 6.2 Chemical Discharges 16 6.3 Oil Discharges 17 6.4 Oil and Chemical Spills 18 6.5 Carbon Dioxide Emissions Offshore 18 6.6 Emissions Offshore of Nitrogen Oxides, Carbon Monoxide and Sulphur Dioxide 20

6.7

Offshore Emissions of Methane and Volatile Organic Compounds

21 22 22 23 24 25 29

6.8 6.9

Offshore Fuel Gas Used and Flared

Waste Generated Offshore

6.10 Disposal of Operational Waste 6.11 Disposal of Backloaded Cuttings Appendix A: Well Flow Status Survey

7. 8.

Appendix B: Glossary

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1. Foreword Welcome to the Oil & Gas UK Environment Report 2013 . The report provides information on the key environmental challenges facing the upstreamoil and gas industry and how these are addressed through Oil &Gas UK, together with trend data on some of the keymetrics of environmental performance. Data up to the end of 2012 are included, as this is the latest full data set. The industry andgovernment share theobjectiveofmaximising the recovery of hydrocarbons fromtheUKContinental Shelf (UKCS) to help provide secure and affordable energy supplies. TheUKCS is, however, amature hydrocarbon basin and the continued production of oil and gas from depleted reservoirs requires greater energy input, increased use of chemicals and the management of larger volumes of produced water. The emissions and discharges resulting from these increases must be effectivelymanaged; the trend data for the industry as a whole illustrates that this is the case, with levels of themost important metrics either decreasing or remaining relatively constant. The upstream oil and gas industry is heavily regulated. All activities, emissions and discharges require government approval, authorisation or permit and helping member companies understand andmaintain compliance with existing and new initiatives from the European Union and OSPAR 1 is a key function of Oil & Gas UK. It is essential that new legislation is fit for purpose and is based upon a sound understanding of the issues it intends to regulate, and in that pursuit, Oil & Gas UK provided responses to several relevant government consultations during the report period on behalf of industry. Oil and chemical spills that reach the marine environment are of concern to stakeholders and the number of spills, when reported with no supporting information, can appear significant. The numbers are high because all spillages, however small, are reportable. Toput thedata in context, the industry produced some 41,482,257 tonnes of oil and gas during 2012 and in doing so used approximately 324,000 tonnes of chemicals. The spills for 2012 were 86 tonnes of oil and 306 tonnes of chemicals – a very small percentage. The industry is not complacent about any spill, however small, and all incidents are analysed to determine their cause. Since theMacondooil spill incident in theGulf ofMexicoduring2010, theUKoffshoreoil andgas sector, incollaboration with regulators, has extensively reviewed theprevention and response capability inplace. Current capabilitywas found to be essentially robust and provides an effective response. Some enhancements were identified and these have been implemented, for example, by constructing a subsea well capping device. An element of this review was to understand whether a significant oil release could occur from wells on production installations. Any well that does not naturally flowoil to the surface, that is it requires assistance to flow, does not have the potential to spill oil. An analysis of the status of all platformwells (provided in an appendix to this report) shows that from the inventory of 5,121 platform wells only 21 are capable of flow rates that could result in a significant oil spill, allowing appropriate preventative and control measures to be put in place. This Environment Report 2013 is the first to be published in this form and will be developed and expanded to include more information in subsequent issues. To help improve and add value to the publication we welcome comments and questions from all stakeholders. Please address these to Mick Borwell, environmental issues director, on mborwell@oilandgasuk.co.uk.

Mick Borwell Environmental Issues Director, Oil &Gas UK

1 OSPAR is the Oslo and Paris Convention for the protection of the marine environment of the north east Atlantic. See www.ospar.org

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2.

Offshore Oil and Gas Production and the Environment

To understand the relationship between oil and gas operations and the environment we must first define what we mean by the environment.

In simple terms the environment is the physical space (or habitat) that living organisms, including human beings, inhabit in water, in the air and on land. In reality, it is much more complex, as organisms interact with each other, with their natural habitat and with man-made structures.

Some people believe that human activities are not part of the natural environment and always have a negative effect. Others consider that humans and their activities are an integral part of the environment.

2.1 The Effect of Human Activities on the Environment Whichever view you take, there is the potential for human activities to influence the balance of the environment and it is essential to understand how this might happen so that any potential effects can be managed and minimised.

Living organisms essentially require three elements from their environment:

• The right physical space – temperature, light and surface to grow on • Access to energy or nutrition • Ability to reproduce

Human activities can affect these elements in many ways, such as:

• Physical disturbance – changes to habitat, removal of food supply • Contamination or pollution – changes to food supply or reproductive capability • Energy levels (light, heat, noise) – changes to habitat, ability to locate food or a mate

2.2 The Effect of Oil and Gas Activities on the Environment The exploration and production of oil and gas from offshore fields involves a range of processes that could potentially affect the environment. Like all industrial activities, these processes use materials and energy and produce a range of waste streams. Some of these are outlined below. During exploration using seismic survey techniques, energy, in the form of sound, is introduced into the environment and this has the potential to affect the habitat of marine mammals and fish. Because of this, surveys are carried out through a carefully controlled procedure, in accordance with government guidelines 2 , to ensure there is no long-term effect. Production of oil and gas requires structures to be placed on the seabed and through to the sea surface. These structures provide a hard physical habitat that may be very different to the surrounding natural habitat and can result in the growth of plant and animal communities that would not normally be there. There is much debate about whether these man-made biodiversity hotspots are good or bad for the environment.

2 JNCC guidelines for minimising the risk of disturbance and injury to marine mammals from seismic surveys. See http://jncc.defra.gov.uk/pdf/JNCC_Guidelines_Seismic%20Guidelines_Aug%202010.pdf

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There arematerials and energy inputs, as well as waste outputs, from the production processes on an offshore installation. Some of these wastes are discharged to the sea with closely monitored permit conditions. Some people believe that the sea should not be used for waste disposal, but it is known that the natural processes occurring in the sea can deal with the waste from offshore operations, so long as environmental limits are not exceeded. The disposal to sea of other wastes, such as garbage, scrap materials and very hazardous chemicals, is not permitted and these are all returned to the shore for treatment and disposal, including reuse and recycling. When an oil and gas reservoir comes to the end of its economic life, decisions have to be made about removal of the structures used for production. International regulations 3 currently require all structures to be removed to leave a clean seabed, unless there are exceptional circumstances that would prevent this. However, the effect on the environment of various decommissioning options, including ‘leaving in place’, must be fully considered in an Environmental Impact Assessment, undertaken in consultation with interested parties such as fishermen and conservation bodies. 2.3 Environmental Protection The key to environmental protection is to have a good understanding of the potential environmental impacts that could arise from operational activities and an effective process to manage these to the point where they are not causing any significant harm. Operators of oil and gas installations achieve this through application of a formal Environmental Management System (EMS) which includes a policy commitment to the environment and to continual improvement in environmental performance. The EMS requires all risks to the environment to be assessed and appropriate management measures applied to those that are significant. The EMS process is reinforced by regulations 4 that require each stage of oil and gas operations to be covered by an Environmental Impact Assessment and, in some cases, set limits on potentially harmful waste disposal. These limits are given to the operator in permits and consents. 2.4 How Environmental Management Works There are two approaches to checking that operations are not significantly affecting the environment. The first is to measure and report on all the waste streams produced. If this data show that the emissions and discharges are within the limits identified in the EMS and in permits and consents, then the environment should be adequately protected. This can be confirmed through the second approach, which is to monitor the environment itself to assess the status of various environmental health indicators, such as the seabed animal community structure and levels of chemical contamination. Both industry and government departments undertake this type of monitoring and make the findings publically available. In general, government publications on the state of the marine environment, such as Charting Progress 5 and Scotland’s Marine Atlas 6 , together with industry surveys 7 , show that the sector is not having a significant impact on the environment. 3 OSPAR Decision 98/3. See www.ospar.org/documents/dbase/decrecs/decisions/od98-03e.doc 4 See www.oilandgasukenvironmentallegislation.co.uk 5 See Charting Progress 2: An Assessment of the State of UK Seas at: http://chartingprogress.defra.gov.uk/report/CP2-OverviewReport-screen.pdf 6 See Scotland’s Marine Atlas: Information for the National Marine Plan at: www.scotland.gov.uk/publications/2011/03/16182005/0 7 See Oil & Gas UK’s Wide Area Surveys at: www.oilandgasuk.co.uk/knowledgecentre/additional_surveys.cfm

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3. Key Environmental Challenges The focus and rationale for environmental management of offshore oil and gas operations has changed significantly over the last few years, particularly with respect to the marine environment. The primary drivers for change are: • Government objectives and policies – the UK Government and the devolved administrations have established a vision for the marine environment of “clean, healthy, safe, productive and biologically diverse oceans and seas”. This vision is being delivered through the Marine Acts and a range of measures, including the establishment of a network of Marine Protected Areas and Marine Planning processes. These measures introduce several concepts that are new to the industry, such as ‘the ecosystem approach’ 8 and ‘cumulative and in combination effects’ 9 , which may present a challenge during implementation. • The European Commission and Oslo and Paris Convention (OSPAR) – the European Commission continues to refine existing legislation and to introduce new requirements. There are a number of directives that have the potential to change environmental management practices, for example, Environmental Impact Assessment; Environmental Liability; Marine Strategy Framework; and Offshore Safety and Emissions Trading. Similarly, OSPAR continues its focus on the reduction of discharges to the marine environment and the management of decommissioning activities. • Stakeholder involvement – many stakeholder groups have a keen interest in the environment and its protection. These include conservation focused groups, the media and other users of the marine environment. The common requirement for all stakeholders is that the industry is transparent and provides information on its activities. The UK oil and gas industry has made significant improvements in stakeholder engagement but there can be a tension where information must remain confidential for commercial reasons. This report is an example of this trend towards greater transparency. • Resource limitations for waste disposal – the onshore disposal of wastes, particularly mixed hazardous wastes, could be a significant issue in the future as resources, such as landfill, become limited in capacity. Although the industry applies the waste hierarchy (prevent, reuse, recycle, recover, dispose) there remain some wastes that cannot be reused or recycled and must be treated and disposed of. • Major incidents – the occurrence of a major incident requires the whole industry to respond by thoroughly examining practices and procedures to reduce the potential for a similar event. In response to the major oil spill in the Gulf of Mexico in April 2010, the UK industry undertook a major review of drilling practices and oil spill response strategies. Enhancements to existing arrangements were identified and these are now being implemented. The challenge is to ensure that robust and sustainable practices and procedures are maintained.

8 The ‘ecosystem approach’ is a strategy for the integrated management of land, water and living resources that promotes conservation and sustainable use. 9 ‘Cumulative and in combination effects’ refer to the potential for multiple developments in the same area to have an impact on the environment that might be greater than the sum of the effects of the individual developments.

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4. Management of Environmental Issues by Oil & Gas UK The Oil & Gas UK Environmental Issues Directorate works with member companies and government departments to monitor and understand the environmental impacts of oil and gas activities on the UKCS, seeking to appropriatelymanage the risks.When necessary, the directoratewill participate in the development of new environmental legislation and press for regulatory reform of existing legislation, attempting to ensure that it is fit for purpose and has a clear benefit to the environment. This is delivered by: • Monitoring the development of national and international environmental legislation, lobbying the appropriate regulatory bodies when necessary • Working with the regulators to determine the best way of implementing new and existing regulations relevant to offshore operations • Ensuring that Oil & Gas UK members are kept informed of developments and potential implications

• Monitoring and assessing the impact of operations on the environment • Analysing the Environmental Emissions Monitoring System database • Conducting literature reviews and analysis

4.1 Forums and Work Groups To effectively manage this broad range of issues the directorate works with member companies to develop cooperative solutions on behalf of the industry. This is achieved through a number of forums and work groups (see figure 1 below).

Figure 1: Oil & Gas UK Environmental Issues Directorate Forum and Work Group Structure

Environmental Issues Directorate

Decommissioning Forum

Environment Forum

Oil Spill Response Forum

Atmospherics Work Group

Environmental Sensitivities Work Group Oil Pollution Emergency Plan Work Group

Drilling Fluids Work Group Radiological Issues Work Group

Oil Spill Treatment Options Work Group

Southern North Sea Environmental Group

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Environment Forum Meetings Knowledge gained through the directorate about the environmental issues associated with hydrocarbon exploration, production and supply chain activities is shared with member companies through the Environmental Forum meetings, held every two months. The forum meetings are designed to provide clear communication of the relevant topics. The provision of information serves to guide our members through regulatory change, minimising the potential impacts and identifying opportunities, thus enhancing future competitiveness. The meetings present an opportunity for a frank and open discussion with the primary environmental regulator for the offshore industry as the forum is always attended by a representative from the Environmental Management and Offshore Inspectorate Teams of the Department of Energy and Climate Change (DECC). The networking opportunities allow for improved cross-industry understanding and mutual experience sharing. • Drilling Fluids Work Group – works on a number of key issues with respect to drilling activities, in particular, the disposal of oil-based mud cuttings as well as the use and discharge of chemicals under the Offshore Chemical Regulations. • Atmospheric Work Group – primarily working on European Union Emissions Trading Scheme issues. • Radiological Issues Group – working with government and environment agencies to formulate the UK strategy for disposal of Normally Occurring Radioactive Materials [NORM]. • Southern North Sea (SNS) Environmental Group – previously known as the SNS Environmental Network, this group was established in 2004 and has recently come under Oil & Gas UK governance. The aim of the group is to share problems and solutions to environmental issues and to identify where collaboration could facilitate developments. The group maintains a database of case studies and also provides an opportunity for engagement with offshore renewables developers. The remit of the group may be widened to all shallow areas, such as the Irish Sea. Oil Spill Response Forum The objective of the forum is to “facilitate the development and maintenance of an effective, robust and sustainable oil spill response capability on the UKCS”. This is delivered through a process of: • Reviewing and recommending response strategies relevant to the UKCS, taking global knowledge into account • Maintaining liaison between industry, regulators, nature conservation bodies, response providers and academia Oil Spill Response Forum Work Groups During the past year, the Oil Spill Response Forum has concentrated on specific topics through tailored work groups. These are: • Environmental Sensitivities and Modelling Work Group – one of the group’s main activities has been to commission the Seabirds at Sea project and to validate the European Seabirds At Sea (ESAS) data. The ESAS database holds information on seabird distribution at sea, derived from a variety Environment Forum Work Groups Currently, there are four work groups meeting on a regular basis as part of the Environment Forum: Harnessing technical industry experience and facilitating stakeholder collaboration enables the work groups to respond to external requests, thus ensuring that future legislation will be appropriate for the offshore industry.

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of surveys undertaken over the past 20 years. This group has also been working with regulators to establish the requirements for oil spill modelling in the preparation of Oil Pollution Emergency Plans. • Oil Pollution Emergency Plan [OPEP] Work Group – this group has developed a framework document to help with the preparation of effective OPEPs and is involved in revising the National Contingency Plan 10 . • Oil Spill Treatment Options [OSTO]Work Group – the use of dispersants and the development of a protocol for environmental monitoring during a spill have continued to be the key focus for the group. The forum’s work enables continual improvements to be made to industry data and processes. The group’s input allows for effective and appropriate planning, resulting in more informed decision making and more effective responses to be made in the face of challenging business situations. Decommissioning Forum The Decommissioning Forum has completed and initiated several decommissioning studies and projects: • Publications produced as a result of these studies include: Decommissioning of Pipelines in the North Sea Region ; Database of Pipelines on the UKCS ; Guidelines on Stakeholder Engagement During Decommissioning Activities ; Long Term Degradation of Offshore Structures and Pipelines ; and Decommissioning of Steel Piled Jackets in the North Sea Region 11 . • Development of the industry position on the removal of installations, informed by the above publications, to prepare DECC for the OSPAR Offshore Industry Committee (OIC) meeting in March 2013 at which Decision 98/3 was reviewed 12 . • Technology review studies have been commissioned in key areas of drill cuttings pile management. This information will be used to develop an industry position for the OSPAR OIC meeting in March 2014 at which recommendation 2006/5 13 will be reviewed. • Oil & Gas UK’s Environmental Issues Directorate has facilitated the establishment of a Long Term Environmental Study which seeks to provide stakeholders with the science needed to better understand the effect of man-made structures on the North Sea ecosystem. This is an independent scientifically-led joint industry programme. The publications are of significant value to our members in that they provide a clear industry forecast for decommissioning and its associated challenges on the UKCS. They also serve to improve efficiency and heighten awareness. The Long Term Environmental Study will gather necessary scientific evidence to support any future discussions on decommissioning regulation whilst creating an opportunity to enhance industry’s engagement with stakeholders and demonstrate its commitment to invest significantly in a greater understanding of the North Sea ecosystem. 10 The National Contingency Plan (NCP) for Marine Pollution from Shipping and Offshore Installations fulfils the UK Government’s obligations under the International Convention on Oil Pollution Preparedness, Response and Co-operation 1990 (the ‘OPRC Convention’). The NCP provides details of the Maritime and Coastguard Agency strategy for counter pollution response. See www.dft.gov.uk/mca/mcga07-home/emergencyresponse/ mcga-dops_cp_environmental-counter-pollution_and_response/mcga2007-ncp.htm 11 These publications can be downloaded from the decommissioning section of Oil & Gas UK’s website at www.oilandgasuk.co.uk/knowledgecentre/decommissioning.cfm 12 OSPAR Decision 98/3 requires all installations to be removed from the seabed at the end of their working life, unless there are exceptional circumstances that would prevent this. Certain installations can be given a derogation from this requirement and the criteria for derogation are reviewed every five years by the OSPAR OIC. See www.ospar.org/documents/dbase/decrecs/decisions/od98-03e.doc 13 The management of drill cutting piles is subject to OSPAR Recommendation 2006/5 which is reviewed by the OSPAR OIC every five years. See www.ospar.org/documents/dbase/decrecs/recommendations/06-05e_Rec%20drill%20 cuttings%20regime.doc

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4.2 Consultation Responses Developing an industry response to public consultations on proposed government legislation is important to ensure that new legislation is fit for purpose and based on a sound understanding of the issues it is intended to regulate. Oil & Gas UK’s Environmental Issues Directorate has provided a number of responses to formal and informal consultations on behalf of industry during 2012/13: • Oil & Gas UK has responded to formal consultations for the following: ◦ ◦ Guidance relating to the Consent to Locate Process under Part 4 of the Energy Act 2008 ◦ ◦ European Maritime Safety Agency draft action plan for response to marine pollution from oil and gas installations ◦ ◦ Offshore Safety Directive ◦ ◦ Greenhouse Gas Emissions 2012 ◦ ◦ Proposals for an integrated framework of environmental regulation ◦ ◦ Marine Conservation Zones ◦ ◦ Marine Strategy Framework Directive ◦ ◦ National Contingency Plan review ◦ ◦ Offshore Combustion Installation Regulations 2013 ◦ ◦ Transposition of the Industrial Emissions Directive in Scotland • Informal consultations include submission of a response to the draft economic and social impact assessments of the Scottish Marine Protected Area designations, as well as giving example cost and operational implications of the proposed management measures. Submitting an industry response to such consultations allows our members’ perspectives to be taken into consideration during both the formation and revision stages of the policy making process. This allows practical policies to be implemented. 4.3 Environmental Seminar Oil &GasUK’s annual environmental seminar comprises a set of in-depthpresentations covering environmental challenges over a broad number of areas. During this one-day seminar, delegates hear from leading experts, including scientists, academics and representatives from industry regulators. The event is a valuable opportunity for environmental practitioners and operations personnel to gather and receive an overview of the types of issues at play to generate increased awareness and to establish how these areas may impact on their business. The seminar also provides an excellent networking opportunity enabling continued cross-industry communication. 4.4 Environmental Legislation Website The Oil & Gas UK Environmental Legislation website 14 is maintained and updated on a quarterly basis to ensure the information provided is accurate and up to date. The site provides information on statutory environmental requirements for offshore and onshore upstreamoil and gas operations and offers guidance on consent applications, statutory limits for discharges and emissions, and the statutory and industry reporting mechanisms that are in place. Guidance is also provided on consent renewal, variation and what to do in the event of non-compliance.

The website is used by operators to satisfy the requirement to have access to applicable legal information within their Environmental Management Systems.

14 The environmental legislation website can be accessed at: www.oilandgasukenvironmentallegislation.co.uk

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4.5 Working With Our Regulators We meet regularly with industry regulators (DECC, the Scottish Environmental Protection Agency, the UK Department for Environment, Food and Rural Affairs, the Maritime and Coastguard Agency and the Environment Agency) on behalf of our members to ensure open discussion takes place on key upcoming industry issues. Numerous positive outcomes have been brought about as a result of these meetings, for example, improvements to the OPEP approval process and improved resourcing within DECC for OPEP reviews. Also, in conjunction with industry regulators, we have organised a number of workshops, such as on the launch of the enhanced DECC Oil Portal and on suspended wells. Frequent meetings with the regulator allow us to communicate the industry position on a wide range of areas that directly affect the sector, while workshops provide our members with a direct interface with the regulator on relevant topics. This provides an efficient mechanism for the industry to put its position to the regulator, and vice versa, thus, stimulating discussion and providing a means to resolve any specific concerns. 4.6 Working With Other Stakeholders The Environmental Issues Directorate not only engages with a range of industry regulators but also advisory agencies to the regulators, external associations, environmental non-government organisations and external work groups (see figure 2 below).

Figure 2: Industry Engagement Structure for Oil & Gas UK’s Environmental Issues Directorate

External Policy and Work Groups

Regulators

Advisors to Regulators

Chemicals Work Group Environmental and Emissions Monitoring System User Group Marine Planning Stakeholder Focus Group Marine Strategy Forum NORM Strategy Project Board Productive Seas Evidence Group Scottish Non Nuclear Industries Liaison Group Seabed Users and Developers Group Underwater Sound Forum

Department of Energy and Climate Change Department for Environment Food and Rural Affairs Environment Agency Maritime and Coastguard Agency Marine Management Organisation Marine Scotland Scottish Environmental Protection Agency

 Centre for Environment Fisheries and Aquaculture Science Joint Nature Conservation Committee Marine Scotland Science Natural England Scottish Natural Heritage

External Associations

Environmental Non-Governmental Organisations Marine Conservation Society Royal Society for the Protection of Birds Whale and Dolphin Conservation Society

 Energy Institute International Association of Oil and Gas Producers Netherlands Oil and Gas Exploration and Production Association Norwegian Oil & Gas Association

Environmental Issues Directorate

Oil & Gas UK Environment Forum

Oil & Gas UK Oil Spill Response Forum

Oil & Gas UK Decommissioning Forum

Atmospherics Work Group Drilling Fluids Work Group Radiological Issues Group Southern North Sea Environmental Group

Environmental Sensitivities and Modelling Work Group

Drill Cuttings Work Group Task Group 2

Oil Pollution Emergency Plan Work Group Oil Spill Treatment Options Work Group

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5. Data Provision and Management Effective environmental management requires accurate information on emissions, discharges and wastes, in addition to knowledge of the state of the environment in which operations take place. Publication of this data is also an important element in stakeholder engagement. Environmental and Emissions Monitoring System The Environmental and Emissions Monitoring System (EEMS) 15 is maintained by DECC and is the repository of measured and calculated emission and discharge data for offshore operations. Not all of the data submitted are a statutory requirement and operators provide additional data voluntarily as part of their environmental management processes. Oil & Gas UK’s Environmental Issues Directorate assists DECC in quality control of the data, encouraging improvements in submissions and contributing to discussions on potential enhancements to the database structure and content. On an annual basis, the directorate consolidates the data for the industry as a whole to assess trends and to identify any areas that may require more detailed assessment. The data for 2012 is presented in section 6 of this report. UK Benthos UK Benthos is a database of seabed chemical and biological data collected by the UK oil and gas industry during baseline, monitoring and wide area surveys. The data span nearly 30 years and an in-depth review has recently been commissioned by Oil & Gas UK whereby academics at Heriot-Watt University will analyse the spatial and temporal distribution and trends in the data. This analysis is intended to be used in developing more focused monitoring strategies and to gain added value from the data.

Six monthly updates of UK Benthos are published on the Oil & Gas UK website and are made available to other data repositories 16 .

Ad-hoc Databases Databases are also established by Oil & Gas UK to address specific issues. For example, the Oil Spill Response Forum needed to understand the potential for a major, sustained oil release from production installations on the UKCS. This can only occur from wells that are capable of an ‘unassisted flow’ of hydrocarbons. With input from operators, a database detailing the status of all production wells has been developed. An analysis of this data is provided in Appendix A.

15 See www.gov.uk/oil-and-gas-eems-database 16 See www.oilandgasuk.co.uk/knowledgecentre/uk_benthos_database.cfm

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6. Trend Data This section provides an overview of key data submitted to the EEMS database for 2012. This includes measured and calculated data on solid, liquid and gaseous discharges as well as emissions from offshore installations and associated onshore terminals.

All emissions and discharges are made in accordance with regulatory controls. Chemicals used are subject to the OSPAR Harmonised Mandatory Control Scheme and are permitted for use and discharge by DECC.

Oil & Gas UK has sponsored the EEMS database since 1992 on behalf of its member companies. It views the maintenance of a high quality, accurate database of environmental data as key to fulfilling the industry’s commitment to a cleaner and safer North Sea environment. DECC regards the EEMS system as a key element in its environmental regulatory function. It is the mechanism through which oil companies can submit their environmental returns, which are used by DECC for government reporting requirements. 6.1 Produced Water Discharge Peak produced water volume occurred in 2002 with 273 million m 3 being discharged to sea and a further 14 million m 3 re-injected. Since 2002, discharge to sea has been progressively reduced with re-injected volumes increasing. In 2012, produced water totalled 201 million m 3 with 156 million m 3 discharged to sea and 45 million m 3 re-injected.

Figure 3: Discharge and Re-Injection of Produced Water in Million Cubic Metres from 2000 to 2012 (volumes of water re-injected prior to 2001 are not recorded)

Produced Water Discharged

Volume of Water Re-injected

100 150 200 250 300 350

Million m 3

0 50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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6.2 Chemical Discharges In 2012, 97,891 tonnes of chemicals were discharged to sea. Drilling and production operations contributed 68,708 and 28,816 tonnes, respectively, with 367 tonnes of pipeline chemicals discharged. Chemicals from drilling operations include cement and cement additives, weighting agents, acidity control chemicals and filtrate reducers, which are necessary for the development and maintenance of wells. Production chemicals are generally associated with physical and chemical treatment for the separation of oil, gas and produced water. Corrosion inhibitors and biocides are used to maintain the integrity of the plant and to optimise production.

Figure 4: Chemical Discharges by Activity on the UKCS from 2000 to 2012

Drilling Chemicals

Production Chemicals

Pipeline Chemicals

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

Tonnes

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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6.3 Oil Discharges Up to 2006, oil concentration in produced water was measured using the infrared method (IR). The IR method measures both the dispersed and dissolved hydrocarbons extracted with solvent. The method can, however, include other organic chemicals, giving an artificially high result and can also underestimate dissolved hydrocarbons. To rectify this and to provide a more accurate analysis of hydrocarbon content, OSPAR agreed (Agreement 2005-15) the use of a new method for oil-in-water analyses, based upon a modified version of the ISO 9377-2 (GC-FID) method. The difference in reported discharges due to the change in analysis method makes comparison of recent data with previous years difficult. For most fields, however, the concentration of oil-in-produced water has reduced over time through investment in separation technologies as well as re-injection projects. Measured using the GC-FID method, the discharged oil quantities to sea in 2012 were 2,267 tonnes based on an average concentration of 14.6 milligrammes per litre. This is comparable with values since 2007.

Figure 5: Oil-in-Produced Water Discharges from 2000 to 2012

Oil Discharged with Produced Water Average Oil Content with GC-FID Method

Average Oil Content with IR Method

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

25

20

15

10

Tonnes

5

Milligrammes per Litre

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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6.4 Oil and Chemical Spills In 2012, 246 oil spills were reported with a total of 86 tonnes released. Although this is the largest quantity of oil spilled since 2002, almost 70 per cent of this figure is attributable to a single incident. In contrast, a total of 272 chemical spills were reported with 306 tonnes released. This is a modest reduction of ten tonnes over the volume spilled in 2011 but a more significant reduction of 994 tonnes against that spilled in 2009. Oil and chemical spills that reach the marine environment are of concern to stakeholders and the number of spills, when reported with no supporting information, can appear significant. The numbers are high because all spillages, however small, are reportable. To put the data in context, the industry produced some 41,482,257 tonnes of oil and gas during 2012 and in doing so used approximately 324,000 tonnes of chemicals. The spills for 2012 were 86 tonnes of oil and 306 tonnes of chemicals – a very small percentage. The industry is not complacent about any spill, however small, and all incidents are analysed to determine their cause.

Figure 6: Chemical and Oil Spills on the UKCS from 2000 to 2012

Chemical Spills

Oil Spills

1,400

1,200

1,000

800

600

Tonnes

400

200

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

6.5 Carbon Dioxide Emissions Offshore In 2012, 14.22 million tonnes of carbon dioxide (CO 2

) were emitted offshore. This follows a general decline

in CO 2 emissions since 2000. The combustion of fuels for energy production on board installations accounts for 79.3 per cent of the total offshore CO 2 emissions, flaring and venting account for 20.5 per cent and direct processes less than one per cent (see Figures 7 and 8 right). Carbon dioxide emission reductions are difficult to achieve because, as fields mature and reservoir pressures decline, more energy is required to extract the remaining hydrocarbons and this requires more fuel gas to be used. Reductions are being achieved as a result of energy efficiency studies undertaken on installations that are permitted under the Pollution Prevention and Control Regulations 2001.

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Figure 7: Offshore Emissions of Carbon Dioxide on the UKCS from 2000 to 2012

CO₂ Emissions

25,000,000

20,000,000

15,000,000

10,000,000

Tonnes

5,000,000

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

Figure 8: Source of Carbon Dioxide Emissions Offshore by Activity on the UKCS in 2012

11,274,476 79.3%

Consumption (T) Direct Process (T) Flare (T)

2,911,169 20.5%

33,594 0.2%

Source: EEMS August 2013

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ENVIRONMENT REPORT 2013

6.6 Emissions Offshore of Nitrogen Oxides, Carbon Monoxide and Sulphur Dioxide Emissions of nitrogen oxides (NOx), principally nitric oxide and nitrogen dioxide, are produced almost entirely from the combustion of fuels at high temperatures. In 2010, 55,837 tonnes of NOx were released. This decreased to 49,398 tonnes in 2011 and 48,542 tonnes in 2012. Carbon monoxide (CO) is produced from the partial oxidation of carbon-containing compounds, most notably, in internal-combustion engines. In 2011, 25,099 tonnes were released and in 2012 this decreased to 21,558 tonnes.

Sulphur dioxide (SO 2 )

is produced offshore by the oxidation of naturally occurring sulphur when liquid or

gaseous fuels are burnt. In 2012, SO 2

emissions were 2,582 tonnes which is significantly lower than those

reported in 2000/1.

These reductions can be attributed to better energy efficiency and the subsequent reductions in fuel gas use.

Figure 9: Offshore Emissions of Nitrogen Oxides, Carbon Monoxide and Sulphur Dioxide on the UKCS from 2000 to 2012

NOᵪ Emissions

CO Emissions

SO₂ Emissions

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Tonnes

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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ENVIRONMENT REPORT 2013

6.7 Offshore Emissions of Methane and Volatile Organic Compounds Methane (CH 4 ) is the principal component of natural gas and is released through incomplete combustion, cold venting and during the loading of crude oil. Methane emissions have decreased from 53,810 tonnes in 2011 to 47,984 tonnes in 2012. Volatile organic compounds (VOCs) form the remaining components of natural gas and arise from combustion and during the loading and offloading of crude oil tankers. Offshore emissions of VOCs have shown a significant decrease from 2000 and 2001 levels of 80,076-86,742 tonnes to 53,939 tonnes in 2012.

Figure 10: Offshore Emissions of Methane and Volatile Organic Compounds on the UKCS

CH₄ Emissions

VOC Emissions

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Tonnes

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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ENVIRONMENT REPORT 2013

6.8 Offshore Fuel Gas Used and Flared Gas is taken from the production process to fuel various processes on offshore installations, including power generation, compression, pumping and water re-injection. In 2012, 3.48 million tonnes of gas was used for fuel. Flaring from offshore installations and terminals is an operating feature used to maintain process safety (that is the evacuation of excess gas) and for operation of production equipment. In 2012, 1.13 million tonnes of gas was flared.

Figure 11: Comparison of Offshore Fuel Gas Used and Flared on the UKCS

Flare Gas Fuel Gas

6,000,000

5,000,000

4,000,000

3,000,000

Tonnes

2,000,000

1,000,000

0

2008

2009

2010

2011

2012

Source: EEMS August 2013

6.9 Waste Generated Offshore The amount of waste returned to shore for treatment and disposal peaked in 2002 at around 194,000 tonnes in total. Between 2004 and 2010, the amount of waste being brought onshore each year remained relatively stable at 130,000. However, wastes increased to 158,580 tonnes in 2011 and 189,060 tonnes in 2012 17 .

Figure 12: Waste Generated by Type

Cuttings

Special

General

Other

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Tonnes

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

17 The waste categories are explained in the glossary on page 29

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ENVIRONMENT REPORT 2013

6.10 Disposal of Operational Waste Operational waste disposal routes are divided into five categories: reuse and recycle, landfill, incineration, waste to energy and ‘other’. The last category includes any treatment methods not captured within the other groups such as composting or the treatment of aqueous wastes. In 2012, 26 per cent (34,258 tonnes) of waste was reused or recycled; this includes scrap metal, oils and sludge. Around 28 per cent (36,453 tonnes) of operational wastes were sent to landfill, comprising general accommodation wastes, treated slops (solid residues) and other wastes. The largest volumes of special wastes returned to shore for recycling and/or disposal are drilling derived oily sludge. The treatment varies among the different effluent treatment plants but generally includes gravity settlement, flocculation, filtration and heat to facilitate the separation of oil, water and solids. In some cases, the solids are subject to further thermal treatment to bring the oil content under the special waste classification threshold of one per cent hydrocarbons. The cleaned solids are then sent to landfill for final disposal. The separated water is treated to enable discharge to sewer. The recovered oil is usually reused as a fuel after further treatment offsite by specialist contractors.

Figure 13: Operational Waste by Disposal Route

Landfill

Reuse and Recycle

Other

Incineration

Waste to Energy

60,000

50,000

40,000

30,000

20,000

Tonnes

10,000

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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ENVIRONMENT REPORT 2013

6.11 Disposal of Backloaded Cuttings Backloaded cuttings are usually treated with drilling derived oily slops at specialist treatment plants in the north east of Scotland. The process, thermal desorption, involves heating the feedstock to vaporise and separate the base oil and water from the solid fraction. Though treatment parameters vary between plants, the vapour oil and water are driven from a processor into a condenser. Oil and water are then allowed to separate under gravity. The recovered solids, with a total hydrocarbon content below one per cent (non- hazardous), are sent to landfill for final disposal. In 2012, the recovered solids accounted for 56 per cent (31,920 tonnes) of the initial amount of backloaded cuttings. The recovered oil enters the national waste oils market and is reused as fuel. The treated water is discharged to sewer. ‘Other’ waste routes, for example water being discharged to the sewer system, amounted to 14,099 tonnes (25 per cent of the overall total).

Figure 14: Backloaded Cuttings from the UKCS by Disposal Route

Landfill

Incineration

Reuse and Recycle

Other

Waste to Energy

60,000

50,000

40,000

30,000

Tonnes

20,000

10,000

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: EEMS August 2013

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ENVIRONMENT REPORT 2013

7. Appendix A: Well Flow Status Survey Since the Macondo oil spill incident in the Gulf of Mexico during 2010, the UK offshore oil and gas sector, in collaboration with regulators, has extensively reviewed the prevention and response capability in place. Current capability was found to be essentially robust and provides an effective response. Some enhancements were identified and these have been implemented, for example, by constructing a subsea well capping device. An element of this review was to understand whether a significant oil release could occur from wells on production installations. Any well that does not naturally flow oil to the surface, that is it requires assistance to flow, does not have the potential to spill oil. An analysis of the status of all platform wells shows that from the inventory of 5,121 platformwells only 21 are capable of flow rates that could result in a significant oil spill, allowing appropriate preventative and control measures to be put in place. Well Flow Questionnaire All operatorswithplatformwellswere sent a pre-populated spreadsheet containing individual well information from the DEAL Database (now incorporated into UKOilandGasData.com) 18 . The following information was requested for all wells: • Is the well capable of unassisted flow? • Well type – is it an oil, gas or condensate well? • Gas Oil Ratio (GOR) • Specific Gravity

• Well pressure class banded into five categories • Flow rate class (oil) banded into six categories • Flow rate class (gas) banded into six categories

Well Flow Results Information was received for 5,121 wells, representing the total inventory. In response to the first question, on unassisted flow, only 19 per cent (992) of wells on the UKCS are capable of free flow as shown in Figure 15 on page 26, that is, during a blowout, the well is capable of continuing to flow.

Figure 15: Wells Capable of Unassisted Flow

5,000

4,129 (81%)

4,000

3,000

2,000

992 (19%)

1,000

0

No

Yes

Source: Oil & Gas UK

18 Common Data Access Limited (CDA) has streamlined its services by launching a new single gateway for subsurface data that incorporates the previous DEAL database. See www.ukoilandgasdata.com

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