BP Canada Energy

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BP Canada Energy

• Sustainability The link to Pollution Prevention

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Developing Society
Social
Alleviate poverty Protect environment Defend
human rights
Financial
Environmental
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Current Reality Vision
Doing the Minimum
Business-as-usual
Current Steps

• EMS - ISO 14001
• Environmental targets
• Stakeholder Dialogue
• Community Involvement
• Reporting

Corporate citizenship Role in society Transparenc
y Holistic

• Env Impact Assessments

Legal Compliance
Strategic Business Assessments
è
Vision
Current Reality
Hydrocarbons
Energy
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Towards Sustainability.
Environment
People
Climate Change
Biodiversity
Water
Economics
.. Supplies, Operations, Products and Services.
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BPs Environmental Priorities
Biodiversity
Climate Change
Fresh Water Conservation
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Examples of Interactions
Climate Change
Desertification Species migration Habitat
destruction
Floods Sea level rise Desertification
Footprint Resource use Emissions/discharges
Biodiversity
Water
Deforestation Water Quality
.. Supplies, Operations, Products and Services.
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Our Approach

• BP is moving toward Sustainability by
• Recognising and quantifying our environmental and
  social impact
• Setting targets to reduce this impact
• Embedding these goals in performance measurements
• Trying new tools
• Building New Business
• Learning from others

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BPs Environmental Story

• Climate Change Strategy
• Biodiversity Strategy
• Water Strategy

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BP Canadas HSE Policy

• No accidents, no harm to people and no damage to
  the environment
• HSE policy is the foundation for the Environment
  Management System

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BPs Stance on Climate Change

• There is now an effective consensus among the
  worlds leading scientists and well-informed
  people outside the scientific community that
  there is a discernible human influence on the
  climate.If we are all to take responsibility
  for the future of our planet, then it falls on to
  us to take the precautionary action now
• - Sir John Browne, July 1997

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Atmospheric CO2
340
320
300
280
260
240
220
200
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
2000
Source Etheridge, D.M., Steele, L.P.,
Langenfelds, R.L., Francey, R.J., Barnola, J.-M.
and Morgan V.I. 1998.
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Observed Global Temperatures
0.6
0.4
0.2
0.0
Temperature Change (Degrees C)
-0.2
-0.4
-0.6
-0.8
1860
1880
1980
2000
1920
1900
1960
1940
Source Intergovernmental Panel on Climate Change
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Vehicle numbers are rising dramatically
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World Energy Consumption Projection
600
500
400
300
Quadrillion Btu
200
100
0
1990
1995
2000
2005
2010
2015
Source International Energy Agency
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GHG from Fossil Fuels
Production and Processing
Transmission
Combustion
2.4
88.8
9.2
Other
Commercial
Residential
Transportation
Canadas GHG Emissions
Agriculture
Natural Gas
Production
Fossil Fuel
Industrial
Production
Power Gen
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The Primary Energy Mix is Getting Lighter
120
110
100
90
89
90
91
92
93
94
95
96
97
98
Source BP Amoco Statistical Review of World
Energy
Consumption indexed to 1989
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BPs Commitment

• 10 reduction in direct, equity share greenhouse
  gases from 1990 level by 2010
• Group wide trading by January 2000
• In our terms that target will now sit alongside
  our financial targets. That means it is a promise
  and, as with our financial targets, a promise is
  a personal commitment
• Sir John Browne
• Yale School of Management, Sept 18 1998

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BP CGBUs Climate Change Strategy

• Controlling greenhouse gases
• Reduced flaring and venting.
• Conserving energy
• Greater combustion efficiencies
• Exploring emerging technologies
• Alternative energy sources wind, solar
• Growing our solar business - 200M invested to
  date
• Promoting Flexible market instrumentsEmissions
  trading,
• Participating in the policy processes
• Investing in research
• CERI

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Emissions Forecast BP Corporate
160
Projected growth
Target reduction 70 Mt
120

• approach on climate change, John Browne,
  Stanford, May 1997
• GHG Target - reduction of 10 by 2010 over 1990
  Announced by Sir John Browne, Yale, September 1998

Million tonnes of CO2e
80
40
0
2010
1990
2010
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GHG Targets and Delivery

• Each business unit is given specific annual
  allocation which states what they can emit.
  (approximately a 4 reduction from the previous
  year)
• Two options to meet allocation
• Organic GHG reductions
• Purchase from the emissions trading system
• monies spent on emissions trading deducted from
  net income of the BU

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CGBU GHG Targets

• Net reduction of 310,000 tonnes
• Organic reduction of 80,000 tonnes
• Balance of 230,000 tonnes by emission credits

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BP Canada EnergyOrganic GHG Reductions
Compressor Retrofits

• BP Canada Energy operates approximately 275 gas
  fired engines
• Represent 45 of our GHG emissions
• Many older engines rich burn combustion
• Rich burn turbo charged engines can be retrofit
  with air fuel ratio controls to improve the
  completeness of recovery
• Reduced fuel consumption
• Improved reliability
• Reduced emissions (CO2 and NOx)

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GHG Reductions Compressor Retrofits Results

• To date, 23 engines have been retrofit, 20 more
  planned for 2001
• Average Improvements
• Fuel savings of 12 15
• NOx reduction of 60
• CO2 reduction of 10 -12
• CO reduction of 97

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GHG Reductions Well Test Flaring Results
90
80
70
60
50
40
30
20
10
Target (e3 m3/well)
0
1998
Flaring (e3 m3/well)
1999
2000
2001
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Emissions Trading System

• Annual cap and trade system
• BUs which are able to reduce GHG below their
  annual allocation may sell credits to BUs unable
  to cost effectively meet their GHG allocation.
• Emissions trading system has placed a value on
  the cost of one tonne of carbon dioxide
  equivalent allowing for incorporation of
  environmental costs into project economics and
  evaluation

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Emissions Trading What we have learnt

• Putting a value on greenhouse gases has
• Raised awareness of the climate change issue
• Created innovative business strategies to find
  cost effective solutions
• Enabled us to quantify financially the GHG
  implications of investment decisions - value on
  the environment

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Emission Trading (USD)/ tonne per year
25
20
(USD)/tonne
15
10
5
0
Jan-00
May-00
Jun-00
Sep-00
Mar-00
Nov-00
Dec-00
Feb-01
Apr-01
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BP Canada Gas Business Unit GHSER Environmental
Management System

• EMS based on ISO 14001 Standards
• Allows BP to systematically identify, focus, and
  create environment management programs
• Priorities are
• emission, spill, waste reductions
• reduced footprint

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A snapshot of BP Canadas Environment Management
System
An Environmental Management System
HSE Policy
Continual Improvement
Planning
-
Environmental aspects
- Legal other requirements
- Objectives targets
- Env. mgmt program
Monitoring Corrective Action
Implementation Operation
-
Monitoring measurement
-
Structure and responsibility
- Non-conformance, corrective
- Training, awareness competence
preventive action
- Communication
- Records
- EMS documentation
- EMS audit
- Document control
- Operational control
- Emergency preparedness response
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HEART Of The EMS
Policy
Regulations
Corporate Expectations
Aspects
Objectives Targets
Environmental Management
Review of Results
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Key Components of Gas Business Units
Environmental Focus in 2001
IMPROVE
HSE Policy

• Objectives Targets on
• Greenhouse Gas Reduction
• -Spills reduction
• -Biodiversity
• -Flaring

ACT
PLAN
CHECK
DO

• Scorecard
• Monitoring and Measurement

Environment Management Programs for Objectives
and Targets
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LCVA - An Eco-efficiency Tool
Life-cycle value assessment a business analysis
and decision-making tool that combines potential
environmental and social impact information for
the full life-cycle of a product or system, with
financial cost-benefit information, for better
decisions.
Pembina Institute for Appropriate Development
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Eco-efficiency
amount of useful product or service produced
Eco-efficiency
amount of resource inputs and/or pollution outputs
is about getting the most for the least material
and energy inputs, and least environmental
outputs.
Pembina Institute for Appropriate Development
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2.2 Develop Process Flow Maps
Pembina Institute for Appropriate Development
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Production Inputs and Outputs
Pembina Institute for Appropriate Development
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LCVA Methodology
1. Goal
Definition
3. Inventory
2. Scoping
Assessment
4. Impact
6. Decision
Improvement
Analysis
Making/Use
Assessment
5. Improvement
Assessment
Pembina Institute for Appropriate Development
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Thinking Life-Cycle
Can I Select a Product or Process ...
Product Purchase
upstream
that...
downstream

• reduces land damage
• reduces raw material use
• reduces energy transportation
• reduces environmental releases

• increases life span
• increases reusability and recyclability

Pembina Institute for Appropriate Development
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(No Transcript)
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LCVA - Kaybob Sulphur Project

• The goal dispose of 300 M tonnes sulphur soil
• 1. Haul to commercial landfill
• 2. Construct on-site PBCC
• 3. Develop separation technology (flash
  distillation)

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Environmental Stressor Categories

• GHG
• CO2, methane, N2O
• Acid Deposition Precursors (ADP)
• SO2, NOx
• Ground Level Ozone Precursors (GLOP)
• NOx VOC
• Particulate Matter
• PM10 PM2.5
• Footprint
• Hectares of land

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Towards Sustainability.
Environment
People
Climate Change
Biodiversity
Water
Economics
.. Supplies, Operations, Products and Services.
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Most significant drivers for pollution prevention

• Corporate expectations and leadership by CEO (Sir
  John Brown)
• Environmental Management System (ISO 14001
  certified)
• Inclusion of external stakeholder perspectives