Scott Meakin: Earning & Maintaining Social License for the Upstream Oil and Gas Sector

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Scott Meakin, Manager, Corporate Responsibility, Canadian Association of Petroleum Producers, spoke at the CEC Joint Public Advisory Committee's Greening North America's Energy Economy public forum in Calgary on April 25, 2013. More at: http://cec.org/jpacenergy

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Scott Meakin: Earning & Maintaining Social License for the Upstream Oil and Gas Sector

  1. 1. Commission for Environmental CooperationJoint Public Advisory PanelPublic Forum onGreening North America’s Energy EconomyEarning & Maintaining Social License forthe Upstream Oil and Gas SectorScott Meakin, Manager, Corporate ResponsibilityCalgary, AlbertaApril 25, 2013
  2. 2. ● A brief diatribe…Introduction•2
  3. 3.  To enhance the economic sustainability of theCanadian upstream petroleum industry in a safe andenvironmentally and socially responsible manner,through constructive engagement andcommunication with governments, the public andstakeholders in the communities in which we operate. Balancing the “3 „E‟s” – Advancing environmentalperformance, economic growth, and energy andreliability to achieve balanced outcomesCanadian Association of Petroleum ProducersMission Statement:•3
  4. 4. Industry Key Success Factors• Key success factors:• Attract investment capital (supply & infrastructure)• Maintain / enhance support from stakeholders & public• Competitiveness• Fiscal Process• Regulatory Process• Trade and Market Access• Workforce Availability• Social License = Performance + Communications• Building trust with Communities and Stakeholders•4
  5. 5. Industry Reputation / Social License –Framing the Issues● Local / Regional: Environment (air, land, water, biodiversity impacts) Social (noise, dust, activity levels, impact on local services, infrastructure& wages, local benefits, employment, etc.)…….The primary focus of landowners, communities, manyAboriginal peoples, many in public.● National / Global (first oil sands, now shale gas): Global climate change Oil and gas infrastructure Role of fossil fuels in future energy system…….The primary focus of most ENGOs, some in the public.•5
  6. 6. Industry Reputation / Social License –Key ElementsPerformance + Communication● Performance Continuous environmental & social performance improvement (acrossthe value chain)…..including monitoring, timely & transparent reporting:• Technology is the key lever.• Industry operating practices…..to raise bar on industry performance. Solutions-oriented advocacy for balanced policy. Robust & credible regulatory framework. Science-based monitoring, 3rd party validation, transparent reporting.● Communications & Outreach: Messaging – balanced, fact-based, emotive, solutions – oriented, “highroad”. Delivery – diversity of mediums, approaches, spokespersons. Strong focus on outreach / engagement – local / regional / national. Grounded in performance improvement.•6
  7. 7. Responsible Canadian Energy Program● Responsible Canadian Energy represents a collectivecommitment by CAPP’s members to: Measure our performance Find new and innovative approaches to reduce our environmental footprint Ensure every worker returns home safely every day Continue to improve the ways in which we communicate and engage thepublic and other stakeholders;Resulting in continuous performance improvement7
  8. 8. Global GHG Emissions• GHG emissions from oil sands: just over 1/1000th of global GHGemissions 6.9% of Canada’s GHG emissions 26% reduction in intensity from 1990Global Emissions Canada’s 2%China24%U.S.18%European Union13%Other26%RussianFederation6%Australia/NewZealand1%India6%Japan4%Canada2%Other Energy -Stationary31.2%Other Oil & Gas15.2%Industrial Processes7.4%Agriculture8.0%Energy Transport28.0%Oil Sands6.9%Waste3.2%Solvent & OtherProduct Use0.0%•Sources:•1. United Nations Statistics Division (2008 Data)•2. Environment Canada (2010 Data)8
  9. 9. •Land Use and Reclamation9
  10. 10. Leveraging Technology and Innovation● Accelerating environmental technology &innovation in the oil sands: Canadian Oil Sands Innovation Alliance (COSIA) Focus on water, tailings, land, GHGs● Alternatives to reduce the need for bothwater and energy (steam): Cogeneration – steam and electric power Solvent / steam injection Alternative well configurations for SAGD Reduce water temperature 80 to 35 degrees Celsius Electro-thermal technology Carbon Capture & Storage● Reducing water use, increasing waterrecycle: Use of saline (non-fresh) water for steam Faster waste water recycle Water technology development centre•Ceramic membranes for water treatment•10
  11. 11. N.A. Natural Gas Supply –The Opportunity• Shale gassupply a game-changer.• Technologybreakthroughs.• New producingregions.• 100 years +supply.• Market growthopportunities(powergeneration,transportation,LNG exports).•11
  12. 12. Top 10 World Natural Gas Producers in 20110 5 10 15 20 25USRussian FederationCanadaIranQatarChinaNorwaySaudi ArabiaAlgeriaIndonesiaTrillion Cubic Feet• Source: BP Statistical Review 2012•Canada, is the 3rd largest producerof natural gas in the world.•12
  13. 13. Public Perceptions About Shale Gas Development•13• “Frac fluidscontain dangerouschemicals thataren’t disclosed topublic”Disclosure• “Fracking can haveadverse effects ondrinking water”Water Quality• “Fracking uses enormousamounts of water”WaterQuantity• “Fracking & associatedwaste-water disposalcause earthquakes”Seismicity13
  14. 14. • People Health effects of hydraulic fracturing chemicals.• Land Surface footprint. Induced seismicity. Wildlife disruption.• Air Air quality during extraction, processing, deliveryand end-use.• Water Groundwater contamination – migration ofmethane gases and fracturing chemicals. Volumes of water used. Handling and disposal of fluids.• GHGs Emissions from production & processing.Public Concerns About Shale Gas14
  15. 15. CAPP Guiding Principles forHydraulic Fracturing125We will safeguard the quality and quantity ofregional surface and groundwater resources,through sound wellbore construction practices,sourcing fresh water alternatives whereappropriate, and recycling water for reuse asmuch as practical.We will measure and disclose our water usewith the goal of continuing to reduce our effecton the environment.3We will support the development of fracturingfluid additives with the least environmentalrisks.4We will support the disclosure of fracturing fluidadditives.We will continue to advance, collaborate on andcommunicate technologies and best practicesthat reduce the potential environmental risks ofhydraulic fracturing.•15
  16. 16. Operating Practices for Hydraulic Fracturing•16 Guide development. Expected practice, but notmandated by CAPP. Inform / complementregulations. Contribute to safe, responsibleoperations.
  17. 17. Implementation Status ofOperating Practices● Expansion of Practices to IncludeTight Oil Completed December 2012● Mandatory reporting of fracturingfluid additives in BC and AB● Reporting on Member Conformancewith Practices Conformance with first six Practices will bereported through CAPP‟s ResponsibleCanadian Energy Program in 2013● Additional seismic monitors beingadded in NE BC● Many supporting studies ongoing
  18. 18. In Summary● Oil Sands and Shale gas extremely important forNorth American energy security● Key success factors: Competitiveness Social License● Social License = Performance + Communications● Highly regulated industry Leading regulators CAPP‟s Operating Principles and Practices –progressive initiative complementing regulations● Industry commitment to responsible energydevelopment Excellent track record Environmental performance improvement Increasing transparency Consulting with our stakeholders● Strong industry commitment to communications& outreach…..for the longer term.•18

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