Hasaneen, Rasha F (2016-12). Using Process and Lifecycle Analysis to Deliver Economically Effective Environmental Health, Safety and Sustainability Public Policy. Doctoral Dissertation.
Thesis
The intense focus on the intersection of energy and the environment has led to extensive discussion of both environmental issues and energy practices. While the environmental health and safety (EHS) issues in oil and gas is a topic of concern for the industry, policy makers, and citizens, it is typically overshadowed by the economic viability of oil and gas operations. Many policy makers believe that EHS practices represent an increase in cost on capital businesses. As a result, they develop environmental policy using methods which force businesses to choose between costs and the environment.
This research proposes a systematic approach to process analyses, based on the lean - six sigma discipline. It analyzes the economic and environmental footprints of existing oil and gas operations using a series of case studies and recommends environmentally favorable solutions. It then evaluates the impacts of these substitutions on both costs and EHS, combining economically and environmentally favorable solutions for oil and gas operations. The results are used to recommend environmental policy that should encourage adoption of the proposed solutions.
Two types of processes were analyzed, a carbon capture and sequestration (CCS) operation associated with liquefied natural gas production, and shale gas production. In analyzing these operations, both environmentally and economically favorable solutions were reached. In addition, by looking at the microeconomic footprints of the operations, public policy recommendations were suggested to more effectively drive adoption of environmentally favorable technologies.
In the case of CCS, the net present value (NPV) for operators with the $23/ton CO2 proposed carbon price is about $700,000,000. In the case of shale operations, environmental remediation options resulted in an NPV of $20,000,000 to $30,000,000, and a reduction of 20,000 to 40,000 tons of CO2 for a single well cluster.
The lean-six sigma approach has demonstrated the ability to develop both economically and environmentally favorable solutions. With this understanding of the economics of oil and gas operations, more effective public policy can be recommended. This approach can be used across industries in a similar manner to drive effective global environmental policy and encourage environmental technology adoption.
