Western Australia has an opportunity to once again set the global standard for sustainability, safety and responsible operations in oil and gas.
If we make the right moves now to encourage sustainable practices in oil and gas decommissioning, the environment won’t be the only benefactor. Western Australia’s communities, economy, scientific sector and statewide infrastructure will also become stronger.
The potential upside is significant.
There are, however, challenges ahead.
Oil and gas decommissioning requires resources companies, governments, marine scientists and recycling companies like C.D. Dodd to work together.
Raising the standards of sustainability in oil and gas decommissioning is an industry-wide effort that will set an example for the world to follow.
By the Numbers: The Challenge of Oil and Gas Decommissioning in Perth
CODA, the Centre of Decommissioning Australia, projects that oil and gas decommissioning costs will reach close to $60 billion over the coming decades. A lot of attention is focused on Western Australia, where 60% to 70% of the work will take place.
While much of the decommissioning work in oil and gas happens at sea, around 12% moves onshore.
CODA calculated that decommissioning and demolition facilities could be required to process between 90,000 and 130,000 tonnes of material per year at peak demand.
Focusing on Sustainability Outcomes
What does it mean to have all this new material coming onshore? CODA asked the same question in its study of Western Australia as an oil and gas decommissioning hub.
The impacts – and CODA’s recommendations – are far-reaching, with requirements for infrastructure, regulation, governance, international collaboration, and community engagement.
One of the most pressing concerns is sustainability.
Key Challenges in Sustainable Oil and Gas Decommissioning
- Environmental impact: Platforms, pipelines and other infrastructure are often located in sensitive marine areas. Their removal can cause disruptions to local habitats. Additionally, there is the risk of spills or leaks that could further damage the environment.
- Economic considerations: While essential, decommissioning can be costly. However, sustainable practices, such as recycling and repurposing materials, can help mitigate these costs over time. This is one reason why CODA concluded there was “an immediate requirement for the onshore dismantling of offshore oil and gas assets.”
- Understanding the challenge: NOPSEMA, the regulator overseeing oil and gas decommissioning in Australia, has made excellent progress gathering data on the infrastructure that needs to be decommissioned. The next step is to standardise this information and make it available to industry partners, so we can work with the major contributors to plan for safe and sustainable decommissioning.
- Planning for impact: Onshore activity is not always included in environmental impact studies for oil and gas decommissioning. Most operators consider the implications under their social licence to operate, but a more explicit method of planning will ensure onshore impact receives the same scrutiny as marine environments.
- Technological limitations: Traditional methods for oil and gas decommissioning may not be as efficient or environmentally friendly as newer technologies. This is why we’ve invested in two state-of-the-art facilities near major ports, each equipped with custom-designed decommissioning technology.
Sustainable Innovations in Oil and Gas Decommissioning
As with all resources projects, sustainability for oil and gas projects nearing the end of their economic viability requires a multi-faceted approach. It’s not solely about environmental impact – although that is a major driver of sustainability measures.
Sustainability means minimising environmental impact, maximising resource recovery, supporting local communities, maintaining safety standards, and raising the bar for subsequent projects.
In practice, this means that the oil and gas decommissioning sector has the opportunity to advance sustainability on several fronts.
- Minimising environmental footprints: Alongside traditional methods to minimise harm to marine environments, new initiatives are emerging to repurpose end-of-life infrastructure such as artificial reefs. This aims to restore marine ecosystems and promote biodiversity around oil and gas sites.
- Recycling and reusing materials: Three major motivations helping to increase recycling and recovery in oil and gas decommissioning are continued R&D for innovative recycling processes, adopting a circular economy mindset where old steel and metal are recycled into new materials, and investing in onshore decommissioning facilities to boost our state’s recycling capabilities.
- Hazardous materials management: Oil and gas decommissioning presents unique hazard risks. Proper containment, transport, decontamination and processing are essential to remove contamination risks. We are pioneering new hazardous waste materials processes, and partnering with established landfill operators to ensure our methods are built on best practices.
- Integrating renewable energy: Western Australia’s green energy infrastructure is developing fast. Oil and gas decommissioning facilities in the Pilbara, Mid West, and South West regions can explore the potential of tapping into renewable energy projects in the regions.
- Robotics and automation: Adapting existing and emerging tech to meet the demands of oil and gas demolition is already improving safety. For example, we’re using custom-designed machinery that eliminates manual cutting. As well as improving safety, technology reduces waste and accidental damage, helping to maximise the material that can be sustainably recovered.
- Sourcing local talent: Sustainability also means supporting WA communities. Hiring people from nearby communities for oil and gas decommissioning projects promotes opportunities for career advancement, and community engagement ensures the outcomes are in everyone’s best interests.
Why the Shift Towards Sustainability in Oil and Gas Decommissioning Matters
Australia – and WA in particular – tend to lead by example when it comes to best practices in resources projects. Oil and gas decommissioning is no different.
With thousands of projects around the world barrelling towards decommissioning, and the stakes for sustainability never higher, what we do here will drive real benefits for communities at home and abroad.
Those benefits are many and varied, including:
- Environmental: Protecting marine ecosystems, promoting biodiversity, and reducing pollution risks both offshore and onshore.
- Economic: Cost savings and potential revenue from recycling, contributing to local employment and training, and accessing energy credits.
- Regulatory: Advancing governance and regulations, avoiding penalties for irresponsible action, and maintaining positive relationships with regulators.
- Scientific: Enabling marine scientists to produce new research, investing in onshore decommissioning technology, and adapting cross-industry technology innovations.
The Future of Sustainable Oil and Gas Decommissioning in Perth
Here at C.D. Dodd, as a leader in offshore oil and gas demolition and decommissioning, we’re making safety and sustainability a top priority. We are drawing on 50 years of experience as we operate new facilities to support the industry’s next phase.
However, we are not the only link in the chain. Sustainability in oil and gas decommissioning is a collaborative effort that requires bold changes across the industry.
We’re ready when you are. Get in touch today to learn more about our turnkey oil and gas decommissioning services or discuss your project requirements.