Friday 27 October 2000

Offshore Oil and Gas Industry Reports Environmental Progress

A report published today (27 October) by the UK Offshore Operators Association (UKOOA), representing companies producing oil and gas in UK waters, highlights continuing progress in the sectors environmental performance.

The report, Balancing Needs - UKOOA 2000 Environmental Report, evaluates the overall environmental performance of thirty companies operating in the UK Continental Shelf (UKCS) and is based on 1999 data on all discharges, emissions and wastes associated with oil and gas operations offshore. It shows that:

* The number of accidental oil spills stemming from the industrys offshore operations, and the quantities involved, continue to decline (from 376 incidents involving 137 tonnes in 1998 to 372 and 119 tonnes in 1999);

* There has been a marked reduction in the use of unclassified chemicals in favour of those included in the Governments Offshore Chemical Notification Scheme (OCNS) (from 14,702 tonnes of unclassified chemicals in 1998 to 5,449 tonnes in 1999). The scheme classifies chemicals by their environmental impacts on a scale ranging from A (hazardous) to E (benign) and controls the amounts that can be discharged. Ninety-two percent of all chemicals discharged by the Industry in 1999 were classified as benign.

* Atmospheric emissions in all five main streams (carbon dioxide, carbon monoxide, NOx sulphur dioxide, methane and volatile hydrocarbons) fell in 1999. The amount of natural gas flared last year dropped by just over 100,000 tonnes.

* The level of oil in produced water has been further reduced to 21.67 parts per million (ppm). Although the total amount of water produced in offshore operations is rising as the number of offshore installations increases and oil production in the older fields decreases, the actual amount of oil discharged to the sea with this water is falling.

The industry is currently regulated by some 200 different sets of environmental regulations applied across the full range of its operations. The report acknowledges the industrys commitment to improve continuously its environmental performance, over and above statutory requirements. But UKOOA also stresses the importance of future legislation taking a holistic approach where further improvement may be made without damage to the UK industrys competitive position.

Introducing the report, Dave Smith, President of Marathon Oil UK Ltd and UKOOAs President, highlighted the role of gas in the UKs overall environmental performance. It should not be forgotten that natural gas has been the largest single factor in allowing the UK to meet its international environmental commitments on reducing greenhouse gas emissions, he said.

The UKs oil and gas industry takes very seriously both its responsibility to protect the environment and its obligation to be accountable to stakeholders. I am therefore pleased to see the publication of UKOOAs third Environmental Report which is aimed at meeting the need for open and honest communication on the industrys environmental performance, he added.

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