Environmental, Social and Governance (ESG) influence continues to grow.

Despite the severe impact of the coronavirus on the global economy, the influence of environmental, social and corporate governance (ESG) issues on investor decision-making continues to grow, according to the EBRD.

Source: ANEVIS

For more information: https://www.ebrd.com/news/2021/esg-importance-continues-rise-in-investors-weighting-despite-covid19-pandemic.html

We can help you manage your ESG risks. For support, contact us at solutions@hseinternational.com

Sustainability, Safety and Reputation during economic challenging times

The decline in oil prices has resulted in some companies decreasing investments, and some even cutting back expenditures. Safety, the environment, and the industry reputation are of concern as companies cut costs during declines.  Accidents continue occurring, indicating that the safety and environmental risks – and challenges of the oil and gas life cycle will continue regardless of oil prices. 

The industry has already gone through significant oil and gas price swings and critical global events several times, and we should learn from past lessons. HSE risks and challenges increase with low oil prices. In fact, the situation now is significantly augmented due to the job losses and wider economic impacts of the COVID-19 induced economic volatility. 

Lower prices and economic volatility often translate into job and maintenance cuts; some workers get distracted with the prospect of potentially losing their jobs, and others may start taking more risks to preserve their positions. The situation may be increased by conflicting communications coming from the top to maintain production while cutting costs.

The industry has already gone through significant oil and gas price swings and critical scenarios several times, and we should learn from past lessons. 

Looking forward, global energy demand will continue to grow but at a slower pace due to greater efficiency, slower population and economic growth, and new and improved technologies. And although more energy will be needed in a lower carbon way, the oil and gas industry will continue to play an important role in the energy portfolio and hydrocarbons will still account for just about half of the total energy mix in 2050. 

The current slowdown in investment will translate into falling production, requiring the drilling of more wells to keep up with upcoming future demand.

The industry's most important and valuable resource is its people. The message from management to the workers on the ground must be one of paying much more attention than ever to safety, environmental protection, and responsible operations while running more efficient operations and maintaining focus on operational integrity. The same message must be passed on to drilling and service companies, especially when contracts and prices are renegotiated. 

Bottom line, it is imperative to maintain focus on safety, the environment, and responsible operations regardless of the present price of oil. The message and actions coming from the top leadership at all times must be loud and clear: moving forward with HSE as the number one priority continuing operations in a very efficient and responsible way.

Mexico Oil & Gas "Apertura" - Round 2 – 1st Call for Bids: 15 Shallow Water Blocks

Mexico launched on July 20th the first call for Round 2 of its Oil & Gas "Apertura", which covers 15 shallow water offshore blocks. 

The blocks are located along the coasts of Tampico, Misantla, Veracruz and southeastern Gulf of Mexico area.  The bidding process will take 8 months with awards of the offshore blocks are scheduled for March 2017. 

Shallow Waters and Above-Ground Risks

Successful bidders (e.g. IOCs) for the blocks located in shallow water of the Gulf of Mexico will sign a production sharing contract for 30 years with two possible extensions of five years.

These shallow water blocks present above-ground non-technical risks, that if inadequately managed often translate into project delays and cost overruns, and operational interruptions during the project life cycle.

The area encompassed by the Round 2 shallow water blocks is geographically extensive and environmentally diverse, and it includes sensitive areas with high biodiversity as well as communities that rely on natural resources.

Initial engagement with stakeholders has identified environmental and social concerns, and communities’ needs among those living closest to the oil and gas areas, including for example:

·       Impacts to ecosystems due to spills and leaks and wastewater discharges,

·       Increase in vehicular and vessel traffic, 

·       Impact on existing local infrastructure and services, 

·       Community health and safety, 

·       Local content requirements, 

·       Income generating opportunities,

·       Skills training,

·       Education, and

·       Basic services.

These challenges and expectations require a contextualized and integrated approach, and innovative solutions to manage the sustainability non-technical risks to ensure the success of the Apertura and oil and gas business ventures in Mexico.

How HSE International, LLC can help

The successful IOCs need to develop and adopt, from the onset, strategies based on a framework that integrates social, economic, environmental, and institutional factors, to have a clear vision for how to operate in the area. 

HSE International’s experience working in the oil and gas industry, in environmentally sensitive and complex social settings, and our international delivery capabilities working with local strategic partners in Mexico, can help IOCs develop and implement strategies based on a sustainability framework.

HSE International’s Sustainable Development Analysis (SDA) combines social, economic, environmental, political and institutional analysis to improve the understanding of the linkages between development dynamics and the political and social structures that shape development outcomes.

We have the knowledge and experience to assist IOCs develop and implement sustainable development frameworks to address these issues early in the project cycle, helping Companies’ manage the above-ground risks and impacts, and contribute to earning and maintaining the regulatory and social licenses to operate. 

HSE International has worked in the Mexico’s oil and gas sector since 2008, including supporting IOCs, NOCs and Regulators, along the oil and gas value chain. We have developed a process to address social, environmental, security and safety risks each step of the way, and are eager to contribute to a more sustainable development of the oil and gas sector in Mexico. 

For more information on how to manage above-ground non-technical risks, read HSE International’s post http://www.hseinternational.com/news-insights/2015/5/mexicos-oil-gas-apertura-shallow-waters-and-above-ground-risks,  and email us at: solutions@hseinternational.com

Operationalizing Sustainable Development

Often times O&G industry discussions on sustainable development topics are focused on strategy, policy, guidelines and other key high level statements, while often the biggest challenge for operators and service companies is implementing good international industry practices to achieve sustainable development.

HSE International LLC’s Managing Director Fernando Rodriguez, will moderate along with Mary Beth Snodgrass (Local Contenect LLC), the following Panel: Operationalizing Sustainable Development, during the SPE Symposium on Health, Safety, Environment, and Sustainability to be held 30 – 31 March in Mexico City, Mexico.

This panel will focus on operationalizing solutions to social, economic, environmental and security risks and impacts. Panelists will share stories of their successes as well as on-going challenges and how they are being addressed. With local and international experience structuring and implementing sustainable development practices, the panelists will discuss operationalizing sustainable development in Mexico at a pivotal time: at the beginning of the country's apertura and during a low oil price environment.

Speakers at this panel will include: Juan Carlos Belausteguigoitia with the Mexico Institute of Technology, Nayelli Garcia with Schlumberger, Mark Thorpe with Torex Gold, and Karla Torrez with Shell.

For more information http://www.spe.org/events/lahs/2016/pages/schedule/tech_program/thursday_techprogram.php

HSE International at SPE Latin America Conference on Health, Safety, Environment and Sustainability, 7 – 8 July, Bogota, Colombia.

HSE International’s Fernando Rodriguez is a member of the conference committee and will be co-chairing several sessions during the conference. Details of the program at http://www.spe.org/events/lahs/2015/en/tech_program.php

The SPE Latin America and Caribbean Health, Safety, Environment and Sustainability (HSES) Conference, to be held 7 – 8 July 2015 in Bogota, Colombia, will explore state-of-the-art technologies and their effects on balancing economic growth - social development - environmental protection - safety & health (sustainability).  It will address the outstanding HSES challenges and experiences for successful execution of oil and gas projects in ever-increasing environments.

Topics will include:

- Environment
- HSE Management
- Health and Safety
- Innovation
- Sustainability

Interested in meeting with Fernando to discuss a particular topic during the conference? Please send a note to admin.assistant@hseinternational.com