BP 2013 Annual Report Download - page 49

Strategic report
BP Annual Report and Form 20-F 2013 45
response capability. For example, this includes using specialized modelling
techniques and the provision of response capabilities, such as stockpiles
of dispersants and planning for major offshore recovery operations.
Enhancing response capabilities
Improving our existing oil spill modelling tools helps BP to better define
different oil spill scenarios and associated response plans. For example,
following modelling for exploration in the Omani desert, we modified the
planned location of pipelines to reduce the impact to groundwater if a spill
were to occur.
We consider the environmental and socio-economic sensitivities of a
region to help inform oil spill response planning. Sensitivity mapping helps
us to identify the various types of habitats, resources and communities
that could potentially be impacted by oil spills and develop appropriate
response strategies. Sensitivity mapping is conducted around the world
and in 2013 we updated sensitivity maps in Angola, Australia, Azerbaijan,
Egypt, Libya, Trinidad & Tobago and the UK.
The use of dispersants is an important option in oil spill response planning.
We have gained a greater understanding of dispersants and their use as a
response option through scientific research programmes. We are
examining topics such as the effectiveness of dispersants in the deep
ocean and the efficiency of naturally occurring marine microbes to
degrade dispersed oil in the Gulf of Mexico and in the seas of Australia,
Azerbaijan and Egypt.
We seek to work collaboratively with government regulators in planning
for oil spill response, with the aim of improving any potential future
response. For example, in 2013 we shared lessons on dispersant use,
controlled burning response strategies and oil spill modelling with
government regulators in Azerbaijan, Brazil and Libya.
See page 42 for information on progress on the recommendations of BP’s
internal investigation into the Deepwater Horizon accident.
Climate change
Climate change represents a significant challenge for society and the
energy industry, including BP. In response to the challenges and
opportunities, BP is taking a number of practical steps, such as increasing
energy efficiency in our operations, factoring a carbon cost into the
investment and engineering decisions for new projects, and investing in
lower-carbon energy products. We also require our operations to
incorporate energy use considerations in their business plans and to
assess, prioritize and implement technologies and systems to improve
energy usage.
Climate change adaptation
We consider and identify risks and potential impacts of a changing climate
on our facilities and operations. Where climate change impacts are
identified as a risk for a new project, our engineers seek to address them
in the project design like any other physical and ecological hazard. We
periodically review and adjust existing design criteria and engineering
technology practices.
Greenhouse gas emissions
We report on GHG emissions on a carbon dioxide-equivalent (CO2e) basis.
This includes CO2 and methane for direct emissions and CO2 for indirect
emissions, which are associated with the purchase of electricity, heat or
steam into our operations. Our GHG reporting encompasses all BP’s
consolidated entities as well as our share of equity-accounted entities
other than BP’s share of TNK-BP and Rosneft. Rosneft’s emissions data
can be found on its website.
Our approach to calculating GHG emissions is aligned with the
Greenhouse Gas Protocol and the IPIECA/API/OGP Petroleum Industry
Guidelines for Reporting GHG Emissions. We calculate emissions based
on the fuel consumption and fuel properties for major sources rather than
the use of generic emission factors. We do not include nitrous oxide,
hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride as they
are not material and therefore it is not practical to collect this data.
Greenhouse gas emissions
2013 2012 2011
Direct GHG emissions (Mte CO2e) 49.2 59.8 61.8
Indirect GHG emissions (Mte CO2e) 6.6 8.4 9.0
The decrease in our direct GHG emissions is primarily due to the
divestment of our Texas City and Carson refineries.
Intensity
The ratio of our total greenhouse gas emissions to adjusted revenue of
those entities (or share of entities) included in our GHG reporting was
0.15kte/$million in 2013. Adjusted revenue reflects total revenues and
other income, less gains on sales of businesses and fixed assets.
Additionally, we publish the ratios for greenhouse gas emissions to
upstream production, refining throughput and chemicals produced at
bp.com/greenhousegas.
Greenhouse gas regulation
In the future, we expect that additional regulation of GHG emissions
aimed at addressing climate change will have an increasing impact on
our businesses, operating costs and strategic planning, but may also
offer opportunities for the development of lower-carbon technologies
and businesses.
Accordingly, we require larger projects, and those for which emissions
costs would be a material part of the project, to apply a standard carbon
cost to the projected GHG emissions over the life of the project. The
standard cost is based on our estimate of the carbon price that might
realistically be expected in particular parts of the world. In industrialized
countries, our standard cost assumption is currently $40 per tonne of
CO2e. We use this cost as a basis for assessing the economic value of the
investment and as one consideration in optimizing the way the project is
engineered with respect to emissions.
Water
BP recognizes the importance of access to fresh water and the need
to manage water discharges at our operations. We assess risks, such
as water scarcity, wastewater disposal and the long-term social and
environmental pressures on water resources within the local area.
We are investing in research with several universities in the US to help
understand future risks in water management, such as the allocation
and use of water in the Middle East and the impact of water policies
and regulation around the world.
Unconventional gas and hydraulic fracturing
Natural gas resources, including unconventional gas, have an increasingly
important role in meeting the world’s growing energy needs. New
technologies are making it possible to extract unconventional gas
resources safely, responsibly and economically. BP has unconventional
gas operations in Algeria, Indonesia, Oman and the US.
Some stakeholders have raised concerns about the potential
environmental and community impacts of hydraulic fracturing. BP seeks to
apply responsible well design and construction, surface operation and
fluid handling practices to mitigate these impacts.
Water and sand constitute on average 99.5% of the injection fluid. This
is mixed with chemicals to create the fracturing fluid that is pumped
underground at high pressure to fracture the rock, with the sand propping
the fractures open. The chemicals used in the fracturing process help to
reduce friction and control bacterial growth in the well. Some of these
chemicals when used in certain concentrations are classified as hazardous
by the relevant regulatory authorities, and each chemical used in the
fracturing process is listed in the material safety data sheets kept at each
operational site. We submit data on chemicals used at our hydraulically
fractured wells in the US, to the extent allowed by our suppliers who own
the chemical formulas, at fracfocus.org.
We aim to minimize air pollutant and greenhouse gas emissions by using
responsible practices at our operating sites. For example, at our drilling sites
in the US we use a process called green completions, whenever possible, to
manage methane emissions associated with well completions following
hydraulic fracturing. This process recovers natural gas for sale and minimizes
the amount of natural gas either flared or vented from our wells.