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Espinosa, Beatriz Nassur (Vicente Hermogerio Schmall, PETROBRAS) | Azevedo, Ricardo Santos (Vicente Hermogerio Schmall, PETROBRAS) | Linhares, Mônica Moreira (Vicente Hermogerio Schmall, PETROBRAS) | de Souza, Angela Martins (Vicente Hermogerio Schmall, PETROBRAS)
Abstract The fossil fuels are pillars to the global economy; however, they are a major contributor to Greenhouse Gas emissions. In light of this, the oil industry can contribute to GHG emissions reduction efforts worldwide, as well as to the sustainable economic growth. This paper intends to present the Company Climate Change Strategic Project activities, the first results and actions implemented to manage GHG emissions. The Company commitment to the climate change mitigation effort is evident in the strategic plan statement through the pledges to boost our share in the biofuel market, lead domestic biodiesel production and increase our participation in the ethanol fuel trade. The Company's efforts also include an energy efficiency corporate program, an action plan to reduce the intensity of greenhouse gas emissions, and a portfolio of investments related to R&D. As a result of the Company's proactive commitment, the Climate Change Strategic Project was set to keep the Company on the sustainability road. A set of indicators appraises the evolution of environmental performance in order to pursue environmental standards of excellence and among those indicators, voluntary avoided GHG emission goal was set to upstream and downstream operations. In order to monitor air pollutants and GHG emissions a system named SIGEA® accounts for more than thirty-thousand sources. Besides, the Company Research Center created a Technological Project - Proclima to support technology developments on energy efficiency, renewable energy and biofuels, and Carbon Capture and Geological Sequestration. Regarding biofuels, the Company has been playing a key role on the logistics to support the Brazilian sugar cane alcohol project named Proalcool since the nineteen's seventies. This project has prevented hundreds of millions of tons of carbon emissions. In addition three Company´s industrial plants are operating in Brazil to produce biodiesel. The project will allow a company-wide integration of GHG mitigation actions to reduce the emissions intensity of the operations and the products, granting the commitment with the sustainable development. It also supports the Company operations with integrated growth, profitability and both environmental and social responsibility.
CHALLENGES AND OPPORTUNITIES FOR THE PETROLEUM INDUSTRY L. C. van Wachem, President of Royal Dutch Petroleum Company and Senior Group Managing Director of the Royal DutchlShell Group of Companies I am pleased to have this chance to talk to you short-lived coup in the USSR come to mind. But that today. And, for a number of reasons, I am pleased does not shake my belief that having some ideas that I am talking to you here in Argentina. First, about what the future might hold is helpful, even if because Shell has been in this country for many events turn out quite differently. years. In fact, Shell Compañia Argentina de Petróleo I think it is fairly well known that Shell companies (CAPSA) celebrated its 77th birthday in September use scenario planning. These scenarios are not fore- 1991. And second, because less than 20 years ago, my casts, but pictures of possible alternative futures. predecessor at that time may well have thought there They are used to encourage discussion of alternatives would be no such birthday. As you may know, Shell and consideration of the 'what ifs' of business deci- CAPSA's commercial activities were nationalized in sions. We believe they improve our view of what the 1974. I am pleased to say that they were denational- world is now, and what it might be in the future. We ized three years later. believe they also help to prepare Shell managers to But Argentina in the 1970s was a very different deal with the unforeseen, the event that is so unlikely country from the Argentina we see today, particu- that people do not think about-until they are in the larly for the oil industry. Until very recently, the oil thick of handling it. sector in Argentina was the most thoroughly regu- Our present global scenarios focus on three areas lated of all the country's market sectors. Now it is where change might be far-reaching-geopolitics; well down the path of deregulation. That is the third international economics; and the environment. reason for my pleasure at being here today. I believe One scenario we term Global Mercantilism. The the success of that deregulation is a tribute to the main feature of this scenario is weakness and insta- work of this government and the support of Yaci- bility in the world's economic and political systems. mientos Petrolíferos Fiscales (YPF). Shell CAPSA, as Countries or regions that are frustrated with interna- well as all those involved in the oil sector in this tional failures focus on building a new, more country, is of course delighted to be working in this managed, regional system. There is emphasis on open market. And we should all be pleased to see regional pacts and bilateral agreements between this country taking its place in the world. For these trading blocs. reasons, it seems particularly appropriate that the Although this scenario captures prevailing protec- WPC has chosen Argentina to host this Congress tionist thinking in industrial countries, policy-makers this
THE ENVIRONMENTAL CHALLENGE FACING THE PETROLEUM INDUSTRY Teruo Noguchi, Chairman and Chief Executive Oficer, Koa Oil Co., Ltd. 1.
will rise from 350 parts per million, the present level, to 700 parts per million in 2100. Combined with It is a great honour to address an international other gases that contribute to the greenhouse effect, conference of such magnitude. Before I begin my the Earth's temperature is expected to rise between remarks, I would like to express my sincere gratitude 1.5 and 5.5 OC. to the staff of the World Petroleum Congresses for This is expected to cause a 30 to 110 cm rise in the their outstanding efforts, which have ensured the ocean level and a 7 to 15% increase in rainfall. success of this conference. Naturally, such drastic environmental changes will Today, I will speak on the theme: The Environ- endanger living conditions on the planet. In other mental Challenge Facing the Petroleum Industry. words, mankind is confronting a problem the likes of In recent years, environmental concerns have cap- which it has never seen before. tured attention worldwide. Among these concerns, I believe that it is the responsibility of all who have the four most pressing are: enjoyed a pleasant global environment so far to destruction of the ozone layer due to CFCs - maintain and preserve the,,planet for future gener- acid rain - ations. It is from this viewpoint that I will approach - deforestation today's subject. - and `global warming' resulting from emissions of carbon dioxide, methane, and other gases. 3. SPECIAL CHARACTERISTICS OF THE When pondering over which of these four environ- GLOBAL WARMING PROBLEM mental issues to address today, I was struck by the Now let us shift the focus of our discussion and word `challenge' in the title of this speech. As talk about some of the special characteristics of the members of the petroleum industry, we are insepara- global warming problem. bly involved with the emissions of carbon dioxide, The most significant characteristic of global methane, and other gases. Thus, we as an industry warming is that it remains scientifically unproven yet must play a leading role in challenging the problem that an increase in carbon dioxide levels causes the of global warming. Earth to warm. Accordingly, in my speech today, I would like to As you know, there are many researchers who relate my opinions on this worldwide problem. believe that there is a direct relationship between an increase in carbon dioxide levels and global 2. WHY IS THERE A NEED TO warming, but this relationship has not been estab- DISCUSS GLOBAL WARMING ? lished completely. For example, there are theories First of ail, I would like to consider why global that claim the Earth`s temperature undergoes cyclical warming has become a topic of debate around the changes due to solar activity. Although I personally world. believe that there is a cause and effect relationship, Although I might seem to be exaggera
Al Gore’s book, An Inconvenient Truth, awakened us to how our life styles and business practices are impacting our world; accelerating pace of melting polar ice caps, rising seas, toxic chemicals in our water and food supplies, climate changes, and limited access to resources. Concern over a toxic environment is not new. Rachel Carson exposed the dangers of pesticides in her book, Silent Spring. Now we understand the impact industry and life styles have on our environment, and we are requiring a personal and professional environmental accountability for our actions.
Businesses are looking for green solutions. Corporate social responsibility is becoming the new yard stick that individuals, society, and companies are using to determine who they will work for, invest in, and do business with. It is no longer acceptable to do no harm; you now must do some good for your employees, the environment, and your community. Companies are seeking out these new business solutions that address profits, the environment, and society which is referred to as the “Triple Bottom-Line.”
Companies have a sense of urgency to implement green solutions. The safety, health and environmental professional is taking on a risk management role, looking at a 360° view of possible solutions, beyond the task and solution and evaluating how these changes can introduce new loss exposures to the workplace and community. These professionals will evaluate new technology and chemical/mechanical/biological exposures for which little information may be available. Many of these potential hazards are not regulated, evaluated, or adequately addressed by existing OSHA standards. Hazardous chemical exposures in particular present challenges because substitution is not always a workable solution. These chemicals may not have complete safety analysis, be too costly, or they may not fit the task’s technical requirements. Socially responsible companies demand the highest level of job safety, creating a culture of protection as opposed to a culture of compliance or, as Ray Anderson of Interface calls the practice, “being as bad as the law will allow.”
The ability to assess, minimize, and offset environmental and social impacts now must be added to the list of core competencies. Even in the current challenging macroeconomic environment, we must carefully consider the total environmental footprint, and the carbon emissions profile of our activities and use this as an additional criterion to optimize portfolio decisions. Focusing on "environmental" sustainability is critical for oil and gas "industry" sustainability. Our essential role in providing the energy to keep the global economy moving requires us to pay special attention to the 17 United Nations Sustainable Development (SD) goals. Most of these topics are only lightly covered in most engineering curricula and have not yet been fully integrated throughout all organizations.