CURRENT ISSUES IN SUSTAINABLE

DEVELOPMENT
Noor Amila Wan Abdullah Zawawi, Ph.D

amilawa@petronas.com.my

CIVIL ENGINEERING DEPARTMENT, UTP

Introduction to Oil & Gas Industry and Sustainable Development PCB/PDB 1012
11 August 2014 & 15 August 2014

COURSE LEARNING
OUTCOMES (CO)

1.

Describe the various steps of the petroleum industry life cycle and
understand which disciplines are involved at each step

2.

Explain how oil and gas are discovered and produced

3.

Explain how oil and gas are transported from the site of production
to refineries or treatment plants

4.

Explain how oil and gas are treated and exported to markets

5.

Describe various petrol and petrochemical products

6.

Describe knowledge and principle of sustainable development.

7.

Explain the concept of legacy of unsustainable world.

8.

Able to relate the patterns of development and sustainable

development with the role of engineers in industry.

9.

Explain various types of footprints and the relation with

sustainable development.

LESSON LEARNING
OUTCOMES (LLO)

LLO1: Able to
identify main
issues in SD

LLO1/CO7
LEGACY

LLO2:Able to explain with

examples each of the
issues and the role of
engineers in SD

LLO3:Able to relate key

sustainability issues
sustainable with engineering
aspects

LLO2/CO8
ENGINEER
S

LLO2/CO9
FOOTPRIN
TS

WHAT IS SUSTAINABLE DEVELOPMENT?

Development that
meets the needs of
the present without
compromising the
ability of future
generations to meet
their own needs.

LLO1
LEGACY

sustainability

LLO1
LEGACY

How are we doing so far???

1.3 billion without access to clean water
about half of humanity lacking access to
adequate sanitation and living on less than 2
dollars a day
approximately 2 billion without access
to electricity

LLO1
LEGACY

TOPIC : KEY ISSUES IN SD

LLO1
LEGACY

Biodiversity Loss

LLO2/CO8
ENGINEER
S

Poverty

LLO2/CO9
FOOTPRIN
TS

Energy Security
Water Stress

LLO1
LEGACY

BIODIVERSITY LOSS

- ISIS Asset Management Report, UK, 2004

LLO1
LEGACY

LLO1
LEGACY

IMPACT OF O&G EXPLORATION ON ENVIRONMENT

soils

Caused by:
local
detrimental
impacts to:

surface

LLO2/CO8
ENGINEER
S

improper disposal of saline water

LLO2/CO9
produced with oil and gas FOOTPRIN
TS

accidental of hydrocarbon and

produced-water releases

ground
water

abandoned oil wells that were

orphaned or not correctly plugged
bio
diversity

10

IMPACT OF PETROLEUM EXPLORATION ON

BIODIVERSITY
Environmental Disturbance Factor

LLO1
LEGACY

LLO2/CO8
ENGINEER
S

Air gun discharges

Seismic

Chemical explosives
Vessel transits

Exploration
Activity

LLO2/CO9
FOOTPRIN
TS

Discharge of toxic drilling fluids

Discharge of fines and solids from
drilling

Drilling

Operational noise
Well
Suspension
& Abandon
-ment

Vessel and aircraft traffic

Loss of well control leading to
oil spill
Debris
Vessel and aircraft traffic

cont.

11

THE SIDE EFFECT OF THE EXPLORATION

ACTIVITY
Air gun discharges
Chemical explosives

LLO1
LEGACY

Loss of
Habitat

Vessel transits
Discharge of toxic drilling fluids
Discharge of fines and solids from
drilling

Displacement
of fishing
activities

Operational noise
Vessel and aircraft traffic
Loss of well control leading to
oil spill
Debris
Vessel and aircraft traffic

Displacement
of loss of
biota (esp.
fish &
shellfish)

Degradation
of beach

12
Ref: Engelhardt, 1989

OIL SPILLAGES

LLO1
LEGACY

13

LLO1
LEGACY

LLO2/CO8
ENGINEER
S
LLO2/CO9
FOOTPRIN
TS

14

LLO1
LEGACY

15

Increasing global demand is driving new oil and gas

discoveries. Over the next 20 years, its expected that 90 per
cent of production will come from developing countries.

LLO1
LEGACY

Yet many countries rich in oil and gas are

home to some of the worlds poorest people.
Revenues dont get
published.
Too often, wealth stays
in the hands of
politicians and industry
insiders.

How can this happen?

Payments made to
governments to exploit
resources remain secret.
16

POVERTY IN NIGERIA
Poverty has risen in Nigeria

LLO1
LEGACY

LLO2/CO8
ENGINEER
than Sa

almost 100 million people living on less

$1 (0.63) a day, despite economic growth,
statistics have shown.

LLO2/CO9
FOOTPRIN
TS

The National Bureau of Statistics

60.9% of Nigerians in 2010 were living in

"absolute poverty" - this figure had risen from
54.7% in 2004.

Nigeria is Africa's biggest oil producer but the sector

has been tainted by accusations of corruption.
"Despite the fact that the Nigerian economy is growing,
the proportion of Nigerians living in poverty is increasing
every year, although it declined between 1985 and 1992,
and between 1996 and 2004," head of the NBS bureau
Yemi Kale said.

LLO1
LEGACY

NIGERIAS POPULATION THAT FACED POVERTY

2010

LLO2/CO8
ENGINEER
S

112.47

2004

68.7

1996

LLO2/CO9
FOOTPRIN
TS

67.1

1992

39.2

1985

34.7

1980

17.1
0

millions
20

40

60

80

100

120

Series 3

18

LLO1
LEGACY

19

LLO1
LEGACY

CAN YOU IMAGINE A WORLD

WITHOUT ENERGY?

Opening Thoughts

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Opening Thoughts

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Opening Thoughts

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

LLO1
LEGACY

Opening Thoughts

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEER
S
LLO2/CO9
FOOTPRIN
TS

Facts and Figures

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

LLO1
LEGACY

Facts and Figures

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

LLO1
LEGACY

International Energy Agency (IEA) defines

energy security as the uninterrupted
LLO2/CO8
ENGINEER
availability of energy sources at an
S
affordable price.
Oil is the most volatile energy commodity
LLO2/CO9
in the world.
FOOTPRIN
Reducing our use of it is the only
genuine energy security strategy

TS

Lack of energy security is thus linked to the

negative economic and social impacts of either
physical unavailability of energy, or prices that are
not competitive or are overly volatile.

35

LLO1
LEGACY

COMPONENT OF ENERGY SECURITY

Energy
Security
LLO2/CO8

Reliable / Uninterrupted supply

Energy
Security

ENGINEER
S

National
Security

Affordable / Competitive supply

Accessible / Available supply

Economic
Security

LLO2/CO9
FOOTPRIN
TS

Environment
Security

36

ISSUE IN ENERGY SECURITY

LLO1
fuelLEGACY

Oil and other fossil

depletion (peak oil, etc)

Reliance on foreign sources of

LLO2/CO8
energyENGINEER
S

Geopolitics (such as supporting dictatorships,

rising terrorism, stability of nations that
LLO2/CO9
FOOTPRIN
supply energy)
TS

Energy needs of poorer countries, and demands from

advancing developing countries such as China and India
Economic efficiency versus population growth debate
Environmental issues, in particular climate change
Renewables and other alternative energy sources

37

LLO1
LEGACY

Africa: The Rush for Black Gold

LLO1
LEGACY

General Overview of Africa

Nigeria has been the top liquid fuels producer in the Sub-Saharan
region, followed by Angola. Together they made up 75% of total liquid
fuels produced in Sub-Saharan Africa in 2012.
Top SSA Liquid Fuels Producers in 2012
Country
Nigeria
Angola
Equatorial Guinea
Congo (Brazzaville)
Gabon
Other SSA
Total SSA
Source: EIA, International Energy Statistics

Production
(million bbl/d)
2.52
1.87
0.32
0.29
0.24
0.64
5.88

Angola
32%

Nigeria
43%
Rest of SSA
11%

Equatorial
Guinea
5%
Congo
(Brazzaville)
5%
Gabon
4%

Source: EIA, International Energy Statistics

Sudan and South Sudan had been the third largest oil producer in the
region before South Sudan shut in all of its oil production in January 2012.

LLO1
LEGACY

The Challenges

LLO2/CO8
Unplanned disruptions caused by oil theft and pipeline damage
ENGINEERS
compromises a substantial portion of Nigerias crude oil production.
Crude oil production peaked at 2.44 million bbl/d in 2005. Despite new
LLO2/CO9
production coming online, crude oil output was only 2.10 million bbl/d
FOOTPRIN
TS
in 2012.

Oil Production in Nigeria, 2003-2012

million bbl/d
3

liquid fuels

crude oil production

Crude oil output fell by more than
25% as infrastructure attacks and oil
theft escalated (2005-2009).

In 2010, attacks on oil facilities

declined following the
implementation of the amnesty
program. But after 2011
disruptions began to escalate

0
2003

2004

2005

2006

2007

Source: EIA, International Energy Statistics and Short-Term Energy Outlook

2008

2009

2010

2011

2012

Oil Theft in Nigeria

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Conflict over Oil

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

Conflict over Oil

LLO1
LEGACY

LLO2/CO8
ENGINEERS

It is estimated that South Sudan has aroundLLO2/CO9

4
FOOTPRIN
times the oil deposits of Sudan
TS

South Sudan relies on pipelines, refineries,

and Port Sudan's facilities in Red Sea state in
Sudan, the agreement stated that the
government of Sudan in Khartoum would
receive a 50% share of all oil revenues
In January 2012, South Sudan suspended oil
production over profit sharing disagreement
CNPC and PETRONAS were affected

Conflict over Oil

LLO1
LEGACY

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

THE OIL SUPPLY IS DEPLETING?

LLO1
LEGACY

LLO2/CO8
ENGINEER
S
LLO2/CO9
FOOTPRIN
TS

45

LLO2/CO8
ENGINEER
S

OIL & FOSSIL FUEL DEPLETION

Country

Year of POP

Mexico

2005

Canada & Algeria

2006

Nigeria

2007

Iran

NOOR AMILA DEPT OF CIVIL ENGINEERING

8/10/2014

Outside Middle East 1997

LLO2/CO9
FOOTPRIN
TS

Quickly using up the vast but finite

amount of fossil fuels

1976

Year of Peak Oil Production (POP)

Iraq & UAE

2009

Kuwait

2010

Each country has its own year of POP,

after which it must begin to import
oil, more oil every year.

Saudi Arabia

2017

[Statistics from Heinberg, The Party's

Over, pp. 103-104, cited from Duncan's
World Oil Forecast #5].
46

LLO1
LEGACY

LLO2/CO8
ENGINEER
S
LLO2/CO9
FOOTPRIN
TS

47

LLO1
LEGACY

LLO2/CO8
ENGINEER
S
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FOOTPRIN
TS

48

LLO2/CO8
LLO1
ENGINEER
LEGACY
S

How does O&G causing water stress?

Methane
Migration
into
Aquifers

Hydraulic Fracturing is designed to extract

methane from shale rock and inevitably
disrupts the geology of an area. The gas wells
themselves are the most common pathway
for methane migration (leakage). This can
lead to high levels of methane in streams,
aquifers and eventually drinking water.

Water
Use
A single frack uses 5-10 Olympic size
swimming pools of water. The fracking
industry removes water from the water
cycle and turns clean water into
polluted water that must be treated and
disposed of.

LLO2/CO9
FOOTPRIN
TS

Water
Pollution

Massive volumes of toxic water are returned

to the surface. Known as produced water it is
contaminated with chemicals used in the
fracking process and materials leached from
the shale rock including heavy metals and
radioactive elements. Additional pollution of
aquifers and surface water is caused by
methane migration, leaking wells, spills and
accidents.
49

LLO2/CO8
LLO1
ENGINEER
LEGACY
S
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FOOTPRIN
TS

50

LLO2/CO8
ENGINEER
S
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FOOTPRIN
TS

51

HMMM

LLO1
LEGACY

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ENGINEER
S
LLO2/CO9
FOOTPRIN
TS

52

LLO2/CO8
ENGINEERS

LLO2/CO9
FOOTPRIN
TS

As an ENGINEER/SCIENTIST/TECHNOLOGIST WHAT CAN YOU DO TO ADDRESS

THE ISSUES IN SUSTAINABLE DEVELOPMENT?

QUIZ!!!!

5
3

THANK YOU
2013 INSTITUTE OF TECHNOLOGY PETRONAS SDN BHD
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