International Petroleum Environmental Conference (IPEC) offers opportunity for exchange of ideas

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1 International Petroleum Environmental Conference (IPEC) offers opportunity for exchange of ideas J. A. Veil and Z. Špiriæ Review Oil and gas are produced in many parts of the world. Persons working in the petroleum industry can learn much by communicating with colleagues in other countries, but the opportunities for engineers and scientists to come together and discuss petroleum environmental control practices, technologies, and regulations with representatives of other countries are limited. This paper describes the very useful International Petroleum Environmental Conference (IPEC) which completed its seventh meeting in November 2000 in Albuquerque, New Mexico, USA. The 7th IPEC attracted 350 participants, including 26 participants from countries other than the United States. The 7th IPEC emphasized international issues and included more than 20 papers by international authors or on international topics. The conference covered all aspects of petroleum environmental issues and featured speakers from many disciplines. The authors recommend this conference as a forum for industry, government, and academia to freely exchange ideas and information. Key words: petroleum, oil and gas, environmental protection, international, communication Kljuène rijeèi: nafta i plin, zaštita okliša, meðunarodni, komunikacija Oil is an international commodity Oil and gas are being produced in many countries around the world. Table 1, based on data collected by the U.S. Department of Energy's (DOE's) Energy Information Administration (EIA), shows the production levels of the major oil-producing nations in the world. Nations in the Organization of Petroleum Exporting Countries (OPEC) account for 42% of the world's total oil production of nearly 68 million barrels per day (bpd). Saudi Arabia is the world's largest producer at 8,250 bpd (12% of total), followed by Russia and the states of the Former Soviet Union at 6,421 bpd (9%), the North Sea offshore (includes offshore production from the United Kingdom, Norway, Denmark, a the Netherlands, and Germany) at 5,914 bpd (9%), and the United States at 5,761 bpd (8%). Other Non - OPEC 50% Source: U.S. Department of Energy, Energy Information Administration Fig. 1. World Crude Production 1999 Sl. 1. Svjetska proizvodnja sirove nafte u USA 8% This information is graphically summarized in Figures 1 and 2. Many of the largest petroleum producing entities are government-owned or -controlled companies. Figure 3 illustrates that the national oil companies of Saudi Arabia, Iran, Mexico (PEMEX), China, Venezuela (PDVSA), and Iraq each produce more oil than the largest private oil company in the world - Exxon Mobil. The other aspect of the petroleum market relates to consumption. Figure 4 shows the countries that consume the largest amount of oil. The United States is by far the largest oil consumer, using over one quarter of the world's production (26%), while Europe as a whole consumes another 19%. Japan consumes 7% of the world's production, followed by China (6%), Russia and the former Soviet states (5%), Canada (), and Australia and New Zealand (1%). All other countries share the remaining one-third of production. OPEC 42% The United States is currently not able to meet its own energy needs; more than half of its oil is imported from other countries. Figure 5 indicates that the United States relies heavily on the large North American and South American producers (Canada, Mexico, and Venezuela provide 40% of the imports) as well as sources from the Middle East, Europe, Africa, and elsewhere. Oil and gas activities in the Republic of Croatia has a century-long tradition of oil production. The overall business, financial activity and human resources of INA Plc., the Croatian state-owned oil and gas exploration and production, oil processing, and trade company, accounts for almost one-third of Croatia's NAFTA 52 (2) (2001) 63

2 INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... J.A. VEIL AND Z. ŠPIRIÆ Table 1. World Crude Oil Production Including Lease Condensate (in thousands of bpd) OPEC 1999 Average 2000 June Algeria 1,202 1,250 Indonesia 1,504 1,490 Iran 3,557 3,705 Iraq 2,508 2,565 Kuwait 1,898 2,150 Libya 1,319 1,420 Nigeria 2,130 2,140 Qatar Saudi Arabia 7,833 8,250 United Arab Emirates 2,169 2,280 Venezuela 2,826 2,940 Subtotal 27,641 28,925 Non-OPEC Angola Argentina Australia Brazil 1,094 1,120 Canada 1,907 2,025 China 3,206 3,295 Colombia Ecuador Egypt Gabon India Malaysia Mexico 2,906 3,056 Norway 3,018 3,002 North Sea offshore 5,949 5,914 Oman Russia and Former Soviet Union 6,079 6,421 Syria United Kingdom 2,684 2,589 USA 5,881 5,761 Other 3,963 4,264 Subtotal 43,986 44,699 Total 65,678 67,710 United Kingdom Venezuela Norway Mexico China Iran USA North Sea Offshore Russia and Former Soviet Union Saudi Arabia Total of all other countries = 22,777 bpd 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Thousand bpd Fig. 2. World Crude Production (June 2000) Top 10 Countries Sl. 2. Svjetska proizvodnja sirove nafte (lipanj 2000.) Prvih 10 zemalja u proizvodnji sirove nafte Table 2. Croatian oil and natural gas production Description Domestic oil (thousand b/d) Natural gas (thousand m 3 ) 1,659 1,551 1,570 1,717 1,786 economy. The principal activities of INA-Naftaplin, the upstream segment of the INA Plc., cover oil and gas exploration and production in the country and abroad. At present, the domestic production comes from 32 oil fields (which meet about 40% of Croatian needs) and from 17 onshore and one offshore gas fields (which meet almost 60% of Croatian needs). Table 2 shows Croatian production over the past five years. The future strategy of INA-Naftaplin involves investing in exploration on concessions within Croatia and elsewhere in the world. These details are provided in Figures 6 and 7. Exchange of Information on Oil Industry Environmental Issues Oil and natural gas are of primary importance for every country's economy. However, the process of producing oil and gas, as well as the emissions and byproducts from combusting oil and gas, create some level of environmental impact, and may endanger human health and the environment. The technological processes of exploration, production, processing, storage, and transportation of oil and natural gas are highly complex and demanding. Multiple interconnected technological systems are applied. In each of the systems, despite good faith efforts to comply with environmental laws and regulations, incidents may occur that result in the contamination and pollution of the environment. Protection and improvement of human working and living environments through the application of optimized technological methods, processes, materials, equipment, and best quality solutions in the course of basic operations are key activities and objectives of petroleum experts worldwide. Oil and gas are being produced in virtually all geographic and climatic areas, ranging from tropical rain forests, to Middle Eastern deserts, to Arctic regions, to deep offshore ocean areas. Many technological challenges have been met in one part of the world that could be adapted to other parts of the world. It is critical that officials from different parts of the world communicate with one another to learn about new developments and trends. Yet the opportunities to exchange information are not often readily available. Governments and oil companies in the United States and Europe have devoted millions of dollars to oil and gas research, some of which involves development of environmental practices, technology, and regulatory controls. The 64 NAFTA 52 (2) (2001)

3 J.A. VEIL AND Z. ŠPIRIÆ INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... Shell ARCO Texaco Chevron Exxon Mobil Abu Dhabi National Oil Nigerian National Petroleum BP Amoco Royal Dutch/Shell Iraq National Oil Company PDVSA China National Petroleum PEMEX National Iranian Oil Saudi Arabia Oil ,000 1,500 2,000 2,500 3,000 Million bpd Fig Production from Top 10 Non-U.S.- Owned Companies and Top 5 Sl. 3. Proizvodnja nafte najveæih svjetskih kompanija i prvih 5 iz SAD 3 5% 6% 1% U.S. Department of Energy, Office of Fossil Energy, recently published a report demonstrating that technologies used for advanced oil and gas exploration and production had resulted in environmental benefits (DOE 1999). The oil industry in the United States and Europe is mature and well developed there. Governments and companies in countries with developing oil industries often look to the United States and Europe for guidance on new technologies and comprehensive regulatory programs. One of the authors of this paper (Veil) has collaborated with government officials in Russia and Mexico to explain how the United States manages and regulates offshore and onshore oil and gas wastes. He was invited by the Dutch government to deliver a keynote address on a 7% 26% 19% USA Europe Japan Canada Australia/ New Zealand China Russia/Former Soviet Union Fig. 4. World Oil Demand - 2nd Q 2000 (million bpd) Sl. 4. Svjetska potra nja nafte (drugi kvartal 2000.) milijun bpd similar topic at the 1997 Expert Meeting on Environmental Practices in Offshore Oil and Gas Activities. Not many opportunities exist for industry, government, or academic representatives from around the world to gather to discuss oil and gas environmental issues. One of the leading meetings of this sort is sponsored by the Society of Petroleum Engineers every two years. The last biennial meeting was held in Stavanger, Norway, in June IPEC Offers Good Opportunity to Exchange Information This paper describes another opportunity for persons interested in petroleum environmental issues to interact and exchange information. For the past seven years, the University of Tulsa (in Oklahoma, USA) has organized the International Petroleum Environmental Conference (IPEC). The conference has grown from about 100 participants at the first IPEC to about 350 participants at the 7th IPEC. The conference features presentations and posters covering a broad range of petroleum environmental issues. The conference has attracted health, safety, environmental, and operating professionals from all areas of the industry, including petrochemical, oil and gas operators/producers, processing and refining, pipeline, drilling contractors, petroleum marketers, engineering/construction, transportation/shipping, regulatory agencies, legal professionals, service companies/consultants. This year the attendees came from a wide mix of backgrounds - 20% were from State and Federal government, 21% were academics or students, and 59% were from industry or consulting firms. The 7th IPEC offered several special pre-conference workshops on: Waste Minimization in Oil and Gas Exploration and Production Streamlined Approaches for Sampling and Analysis Programs at NORM-Contaminated Sites Improving Production Economics: The Preventive Approach Fundamentals of Bioremediation of Hydrocarbon-Contaminated Soils The conference included technical sessions on the following topics: Legal and Regulatory Issues in the Oil and Gas Industry Pollution Prevention, Waste Management, and Waste Minimization Bioremediation of Petroleum Hydrocarbons NAFTA 52 (2) (2001) 65 Other

4 INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... J.A. VEIL AND Z. ŠPIRIÆ Other OPEC 8% Kuwait 2% Algeria 2% Nigeria 10% Canada 14% Venezuela 1 Saudi Arabia 1 Mexico 1 Angola Virgin Islands United Kingdom Norway 2% Other non-opec 14% Fig. 5. U.S Petroleum Imports - June 2000 (thousands of bpd) Sl. 5. Uvoz nafte u SAD lipanj 2000 (u tisuæama bpd) Characterization and Remediation of Brine-Impacted Soils Biotreatment and Bioremediation International Issues in the Oil and Gas Industry Phytoremediation of Petroleum Hydrocarbons Treatment and Management of Produced Water Forensic Geochemistry and Site Characterization/ Technology Transfer Environmentally Acceptable Endpoints Desulfurization of Fuels and Waste Streams Control of Air Emissions MTBE/Phytoremediation and Natural Attenuation Treatment and Remediation of Petroleum Hydrocarbons The last day of the conference was devoted to a special symposium on "Innovative Technologies for Subsurface Characterization and Remediation." Despite having "International" in its name, IPEC had not really emphasized international participation during its first six years. Although speakers and other participants traveled from many countries (see Figure 8) to OIL INDUSTRY Plc. ZAGREB NAFTAPLIN ACTIVITIES ABROAD TURKEY 1988/90, TEXACO, Naftaplin 20% CYPRUS 1969, FOREST OIL Corp, Naftaplin 50% RUSSIA 1998, NAFTAPLIN, CHINA 1979/80, ELF, Naftaplin (seizmic line) ITALY 1977, AGIP, Naftaplin 30% TUNISIA 1986/88, CONOCO, Naftaplin 33, 1988/91, Naftaplin, KOREA 1980/82, Naftaplin, 50% ALGERIA 1993/95, AGIP, Naftaplin 9% LIBYA 1989/98, Naftaplin, VIETNAM 1978/81, DEMINEX, Naftaplin 50% GABON 1977/81, Naftaplin, 20% EXPLORATIONS DURATION OF EXPLORATION OPERATIONS OPERATOR NAFTAPLIN'S SHARE ANGOLA 1980/98, ELF, 5% EGYPT-Farafra 1994/98, AGIP, 35% JORDAN 1968/71, Naftaplin 50%, BURMA 1975/76, TOTAL, Naftaplin 25% BANGLADESH 1974/75, Naftaplin, 1975/77, Naftaplin, 80% Fig. 6. INA-Naftaplin activities abroad ( ) Sl. 6. Djelatnost INA-Naftaplina u inozemstvu NAFTA 52 (2) (2001)

5 J.A. VEIL AND Z. ŠPIRIÆ INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... OIL INDUSTRY Plc. ZAGREB NAFTAPLIN PRESENT ACTIVITIES ABROAD RUSSIA ALBANIA ANGOLA SYRIA EGYPT EXPLORATIONS EXPLORATION, DEVELOPMENT AND PRODUCTION DEVELOPMENT AND PRODUCTION Fig. 7. INA-Naftaplin present activities abroad Sl. 7. Aktivnosti INA-Naftaplina u inozemstvu Argentina Brazil Chile Colombia Ecuador Peru Venezuela Canada Mexico Bulgaria Croatia Italy Netherlands Norway Russia Sweden United Kingdom Egypt Tunisia Fig. 8. Nationalities of Previous International Participants Sl. 8. Sudionici prethodnih konferencija Australia Former Sov.Union Hong Kong Israel Japan Kazakhstan Korea Malaysia Saudi Arabia Source: Stephen Hall, University of Tulsa the 1st through 6th IPECs, they represented from only 4% to 10% of the total number of participants. As discussed above, petroleum is a truly international commodity, and an "international" meeting should have stronger international participation. While planning and preparing for the 7th IPEC, the organizers recognized this shortcoming and decided to initiate several actions to give greater emphasis to international issues, activities, and participation. First, an entire session was devoted to "International Issues in the Oil and Gas Industry." To obtain papers for this session, potential speakers throughout the world with international experience were invited to submit abstracts. The International Issues session had space for just 8-10 papers, yet over 20 inter- NAFTA 52 (2) (2001) 67

6 INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... J.A. VEIL AND Z. ŠPIRIÆ national abstracts were received. Those papers not placed in the International Session were added to other technical sessions to give a strong international representation at the 7 th IPEC. The 7 th conference attracted 26 participants from countries other than the United States. Some of the papers by international authors or on international topics are highlighted below. Several papers were presented at the 7 th IPEC addressing the creation of regulations in developing nations (Bryson 2000; Gotsiridze et al. 2000; Rivera et al. 2000). Other papers provided a comparison of regulations or operating practices between the United States and the rest of the world (Getliff et al. 2000; Jones et al. 2000; Veenstra and Mohr 2000). One of the authors of this paper presented information on an innovative method for monitoring air emissions using lichens (Špiriæ 2000). In another effort to highlight international issues, author Veil gave a plenary talk dedicated to the importance of international communication in oil and gas environmental matters (Veil 2000). The next IPEC (the 8 th )is scheduled for November 5-9, 2001, in Houston, Texas, USA. The authors are encouraged that the 8 th IPEC will continue to expand the emphasis on international considerations. Preliminary information is available on the University of Tulsa's web site at: edu. Because of the rising interest and influence of the general public, as well as increasingly stringent regulations, it will be necessary to invest enormous funds to develop new technologies and methods for environmental protection and reduction of risks during exploration and production of oil and gas. In search of the answers to these technology challenges, and also in search of solutions to the conflict between the growing needs for new sources of energy and sustainable development, a great contribution is expected from engineers, scientists, and other technical experts. Conferences such as IPEC provide an opportunity for these experts from around the world to share ideas and technologies to achieve these solutions. Conclusion The petroleum industry affects all parts of the world. At present, sustainable development is a strong and important driving force, but also is a limiting factor for further development of the world economy and society in general. In the petroleum industry, the limits of ecological sustainability for petroleum production may be estimated through the multidisciplinary study of relationships between geology, biotechnology, economics, ecological risks, and possible environmental impact. This knowledge is critical not only to our understanding, control, and optimization of existing processes, but also to planning strategies and decision-making for further expanding oil and gas operations throughout the world. Experts working in the petroleum environmental field will benefit from widely available and current information sources and state-of-the-art technology. The International Petroleum Environmental Conference, which has been held for the past seven years, offers a unique opportunity for individuals from many different countries and disciplines to interact and exchange ideas, information, and knowledge. Acknowledgments Mr. Veil's work on this paper was supported by the U.S. Department of Energy's Office of Fossil Energy and National Petroleum Technology Office under contract W Eng-38. The authors express their thanks to Professor Kerry Sublette, Stephen Hall, Patricia Hall, and Nancy Felts of the University of Tulsa for their efforts in sponsoring and running IPEC each year. "The submitted manuscript has been created by the University of Chicago as Operator of Argonne National Laboratory ("Argonne") under Contract No. W ENG-38 with the U.S. Department of Energy. The U.S. Government retains for itself, and others acting on its behalf, a paid-up, nonexclusive, irrevocable worldwide license in said article to reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly, by or on behalf of the Government." References Bryson, W.R., 2000, "Identification of Barriers to Melding Western Oil and Gas Regulatory Experiences into Regulatory Drafts for Former Soviet Union Republics," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Getliff, J., I. Still, and J. Candler, 2000, "Ecotoxicity and Drilling Fluids - An International Perspective," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Gotsiridze, T., 2000, "Deregulation and Reform of Oil and Gas Sector in Georgia - Lessons Learned," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Jones, F.V., A. Leuterman and I. Still, 2000, "Discharge Practices and Standards for Offshore Operations around the World," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Rivera, R., J. Veil, B. Langhus, A. Barriguete, R. Chavez, C. Travis, R. Solis, and L. Calva, 2000, "Regulatory Proposals that Allow More Flexible Alternatives to the Disposition of Petroleum Exploration and Production Drill Cuttings in Mexico," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Špiriæ, Z., 2000, "Biomonitoring in the Petroleum Industry," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November U.S. Department of Energy (DOE), 1999, "Environmental Benefits of Advanced Oil and Gas Exploration and Production Technologies," report no. DOE-FE-0385, Office of Fossil Energy, Washington, DC, October. U.S. Department of Energy (DOE), 2000, Energy Information Administration, data taken from website at: accessed September. Veenstra, J.N., and K.S. Mohr, 2000, "An Overview of US and International Regulations Regarding Hydrocarbons in Water Effluents," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November Veil, J.A., 2000, "Putting 'International' Back into IPEC," presented at the 7th International Petroleum Environmental Conference, Albuquerque, NM, November NAFTA 52 (2) (2001)

7 J.A. VEIL AND Z. ŠPIRIÆ INTERNATIONAL PETROLEUM ENVIRONMENTAL CONFERENCE... Meðunarodna konferencija o zaštiti okoliša u naftnoj industriji (IPEC) - prigoda za razmjenu ideja Sa etak Poznata je èinjenica da je zaštita okoliša postala jedan od najznaèajnijih ogranièavajuæih èimbenika daljnjeg razvoja društva, pa dakako i naftne industrije. Briga za okoliš postala je dio poslovne strategije i temelj je koncepta ekološki i ekonomski djelotvornog poslovanja. Radi toga, za svaku naftnu kompaniju posebno je va no raditi na unapreðenju postojeæih i razvijanju novih mjera i procesa, ali i praæenju i stalnom usvajanju suvremenih trendova u naftnoj industriji. To podrazumijeva potpunu informatizaciju poslovanja, odluèivanja i upravljanja, automatizaciju tehnoloških procesa, kao i dizajniranje, razvoj i primjenu, te zamjenu postojeæe tehnologije suvremenom. Osobe zaposlene u naftnoj industriji mogu mnogo nauèiti komunicirajuæi s kolegama u drugim zemljama, ali su moguænosti da se in enjeri i znanstvenici sastanu i razgovaraju o unapreðenju zaštite okoliša, tehnologiji i propisima u naftnoj praksi s predstavnicima drugih zemalja ogranièene. U ovome radu, uz podatake o svjetskoj proizvodnji i potra nji nafte koji naftnoj industriji daju sna na meðunarodna obilje ja, dan je prikaz jedne od takvih moguænosti. Naime, ekološki izazovi i ogranièenja u naftnoj industriji mogu biti objašnjeni i razriješeni jedino multidisciplinarnim pristupom i suradnjom struènjaka. Zbog toga, velika je korist od organiziranja i sudjelovanja na meðunarodnim skupovima posveæenim ovim temema. Skupovi omoguæuju predstavljanje vlastitih postignuæa i izlaganje kritièkom sudu najstro e struène javnosti, kao i njihovu usporedbu sa drugim nastojanjima i rješenjima. Pored toga, pru aju moguænost za izravno praæenje brojnih izlaganja, kao i neposredne kontakate i suradnju sa vodeæim struènjacima najrazlièitijih profila koji diktiraju i uoblièuju "ekološku politiku" - kriterije, preporuke i norme naše djelatnosti. 7. meðunarodna konferencija o problemima zaštite okoliša u naftnoj industriji /IPEC/, okupila je oko 350 eksperata naftne industrije iz cijeloga svijeta (ipak prete ito iz SAD-a), s ciljem proiznala enja rješenja i odgovora na brojne izazove (znanstveni, tehnološko-tehnièki, zakonski, organizacijski,..) koji povezuju naftnu industriju i zaštitu okoliša. Predstavljeno je oko 100 radova, od toga više od 20 meðunarodnih autora ili onih koji se bave meðunarodnim temama. Na konferenciji su bili obuhvaæeni svi aspekti pitanja zaštite okoliša iz oblasti naftne industrije i predstavljeni predavaèi iz najrazlièitijih disciplina. Posebno su bila naglašena pitanja poticanja razvoja i primjene novih tehnologija i znanja kojima se osigurava odr ivi razvoj. Autori preporuèuju konferenciju kao sna an i va an vid slobodne i uèinkovite razmjene suvremenih ekoloških tehnologija, znanja, ideja i informacija va nih kako za industriju i naftno gospodarstvo, tako i za zakonodavnu vlast, znanstvene i obrazovne institucije, ali i za nevladine udruge kao i širu javnost. Istièu da je djelotvorna meðunarodna suradnja naftnih struènjaka conditio sine qua non za ispravno razumijevanje, tumaèenje, kontrolu i unapreðenje postojeæih procesa, ali i za izradu strategije i donošenje va nih poslovnih odluka u naftnoj industriji. Authors (Autori) John A. Veil, M.S., graduated environmental engineer and marine biologist, Manager - Water Policy Program, Argonne National Laboratory, 955 L'Enfant Plaza, SW, Suite 6000, Washington, DC 20024, USA jveil@anl.gov Zdravko Špiriæ, PhD., graduated chemical engineering and technology engineer, Environmental Protection Dep. Manager INA-Naftaplin, Šubiæeva 29, Zagreb, CROATIA zdravko.spiric@ina.hr UDK : 665.6/.7 : : : (497.5) 665.6/.7 naftna industrija energetika strateško planiranje, strateški razvoj (497.5) R. Hrvatska Manuscript received on Paper accepted on NAFTA 52 (2) (2001) 69