Eco-Efficiency in Practice: Aligning Business and Environmental Interests in the Upstream Oil and Gas Sector

Abstract

In 1991, the World Business Council for Sustainable Development (WBCSD) introduced “Eco- Efficiency” as a management strategy to link financial and environmental performance to create more value with less ecological impact. Based on this strategy, CETAC-WEST (Canadian Environmental Technology Advancement Corporation - West), in mid-2000, introduced a practical approach to eco-efficiency to Western Canada's upstream oil and gas sector. The CETAC-WEST Eco-Efficiency Program, focused primarily on sour gas processing facilities, has developed methods and programs to identify opportunities for energy conservation and GHG reductions. The program outlined in this paper consists of four interrelated phases that are used to identify and track efficiency opportunities as well as promote the use of energy efficient methodologies and technologies. If, as program results suggest, 15% to 20% of the gas that is now consumed at by plant operations can be saved through efficiencies, it would save $500 to $700 million worth of gas for sale on the market. Although this small Pilot Program in the gas processing sector has surfaced major opportunities, there are significantly greater opportunities in other sectors with high GHG emissions intensity, such as sweet gas processing, conventional oil, heavy oil and oil sands. Capturing these opportunities will require a carefully considered strategy. This strategy should include, in addition to commitments for expanding the scope of the current Program, sustained leadership by industry champions and by governments - all aimed at changing the operating mode and improving the culture in the oil and gas industry.