The UKOOA-Policy Studies Institute Sustainable Development Project and its Findings

	Professor Paul Ekins Head of the Policy Studies Institue's Environment Group and a member of the Royal Commission for Environmental Pollution, who has been centrally involved in taking forward both the theory and practice of sustainable development.
	James Firebrace an independent consultant, with many years experience of the UK oil and gas industry and responsible for the project management compilation of the industry's earlier SD reports.
	Robin Vanner a full time researcher with the Policy Studies Institute, having an academic and consultancy background in environmental management.

Introduction

This project has been a two-year partnership between UKOOA and the Policy Studies Institute. PSI is one of the UK's leading independent research institutes with a strong reputation for conducting research that promotes economic well-being and improved quality of life and for providing well considered policy recommendations on environmental and social issues.

UKOOA's objectives in this joint venture have been to develop a methodology to help the industry assess key issues identified within its sustainable development agenda and to provide independent assessment and insights into areas already the subject of external scrutiny. The project was made possible by funding from the Engineering and Physical Sciences Research Council (EPSRC) under the DTI's Sustainable Technologies LINK Programme, matched by industry largely through in-kind contributions, identifying and providing data, case studies and research papers.

The project team was Professor Paul Ekins, James Firebrace and Robin Vanner with involvement from technical experts within the industry and independent peer reviewers. This way of working allowed a rare depth to the collaboration between industry and academia, whilst providing independence for the findings.

The project is now largely complete. Its detailed findings have been published as PSI Working Papers and can be found on the PSI website (http://www.psi.org.uk/ research/project.asp?project_id=91). Two articles (on decommissioning and produced water) have been submitted to peer reviewed journals. These various outputs have already stimulated much debate both within industry and at the stakeholder forums where presentations have been made. DTI have been kept informed of progress and given the opportunity to comment.

A novel approach to assessing the contribution to sustainable development

A central aim of the study was to develop a sustainable development methodology that could be applied to the oil and gas industry, then potentially to other sectors. This methodology is based on an analysis of material and energy flows and their related costs down the value chain. This is coupled with an environmental impact analysis (based on no-harm thresholds, while examining the issues relating to precautionary action) and the analysis of other sustainability issues. The study thus provides a 'holistic' comparative assessment of the full range of impacts for a range of alternative options. This sustainable development methodology is being written up and will be compared with other approaches that have been adopted.

To develop this methodology the project examined four major topics confronting the industry; each had been highlighted by the original Striking a Balance strategy and around each there had already been much debate and indeed, in some cases, controversy.

North Sea legacy: the decommissioning of large offshore platforms

This part of the study focussed on the removal – wholly or in part - of large steel and concrete structures and on long-term options for drill cuttings piles and pipelines. The study's methodology allowed a comparative assessment of the full range of sustainability issues for the key disposal options. The major issues examined included the implications for resource extraction, energy use, emissions, landfill, employment, safety, clean seabed, and impact on fishing (especially trawling) and fish stocks. The study recognised there will be differences in perception and priorities on the issues relating to decommissioning and that there is unlikely to be a full social consensus on the 'best' decommissioning solution. The study concluded that no solution is unequivocally the best environmentally and that a very large value would need to be put on a clear seabed and on recoverable material for complete removal to be justified.

Understanding potential pollution: oil-in-produced water

Meeting the prescribed regulatory targets for 2006 will require the installation of new technologies and/or new produced water management techniques. The study provided a comparative assessment of a number of these options; the status quo, produced water reinjection, filtration and two innovative technologies. It concluded there is currently no evidence of harm to human health or to the marine environment from the way produced water is currently managed. It is not possible to quantify in a meaningful way the small risk of harm associated with such management. The study showed how the regulatory system could be developed in three possible ways, each of which would be consistent with the precautionary approach. It provided a comparative assessment of the costs of these different approaches and of associated secondary environmental impacts. The study also argued the likely absence of 'hot-spot' considerations (with potential effects on fish congregating near platforms) when the UK permit trading is adopted. (See also sections on environmental indicators and case study.)

Minimising carbon emissions: energy use offshore

The study aimed to develop an understanding of the industry's use of energy on offshore platforms at the various stages of the operational lifecycle and thereby generate insights into potential efficiency measures and performance indicators. The study has generated a deeper understanding of the drivers of future energy use, highlighted the need for closer consideration of the assumptions used when projecting ahead and drawn attention to the importance of key events during the operating life of the platform. The study also looked into the use of potential measures for inclusion in the "SD indicator wheel". (See section on environmental indicators.)

Addressing social impacts during industry transitions

The project reviewed a small number of company initiatives each associated with a specific transition and examined the range of stakeholder issues relating to changes in employment and skill needs. The study developed a tool to facilitate a greater understanding of the drivers of specific social initiatives, looking both at the benefits derived from improved relationships and from an improved operating environment. The cases examined were deliberately varied. Two concerned upstream initiatives - one relating to the final period of the fabrication of offshore structures in North East England, the other to a company's diversifi cation into offshore renewables, initially to supply the energy needs of an offshore platform. The third case study concerned far reaching company initiatives taken in partnership with local authorities and economic development agencies to address the social effects of the restructuring of its refining and chemicals operations in Scotland.