Risk management

Matrix Analyzes Environmental and Social Aspects of Oil and Gas Projects

This paper presents a novel matrix to identify environmental and social elements relevant for the development of oil and gas projects. It also proposes a useful traffic light and multivariate analysis methods for the evaluation of these elements.

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This paper presents a matrix to identify environmental and social aspects that may affect the initiation, assessment, final investment decision, and implementation of oil and gas projects in Mexico. The matrix is applied to 19 blocks. The results demonstrate the ease of identification of key elements that may affect project feasibility. This matrix may be used as a tool for resource classification and thus adapted to other countries.

The Agency for Safety, Energy, and Environment (ASEA), with collaboration from the Energy Ministry (SENER) were involved while the project selection was integrated by the National Hydrocarbon Commission (CNH). CNH selected 19 blocks with 75 oil and gas projects for review. SENER and ASEA developed a matrix with clear identification of environmental and social aspects that may influence the implementation of each project. The traffic light and multivariate analysis methods were adopted to color code the environmental and social elements. This coding allowed quick identification of key areas that need to be addressed for project feasibility.

The selected blocks were both offshore and onshore with different environmental and social issues. Unconventional and conventional resource developments were covered in the projects. The matrix proved to be a consistent tool for better identification and understanding of the social and environmental aspects interacting in each block. It also emphasized the main sources of information and the best way to evaluate systematically the social and environmental aspects. The application of the matrix on real blocks exposed the social and environmental aspects that must be addressed for the oil industry to develop sustainably. The evaluation of diverse blocks allowed for the identification of common characteristics and the subsequent classification of the blocks. The developed matrix may be used as a tool for making energy policy decisions. At the national level, it also may assist in understanding and meeting some of UN Sustainable Development Goals.

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