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Although the final consumption of our products occurs a number of steps down the value chain from our own activities, we recognise that many expect our industry to take more responsibility for the use of our products in society. Figure 4 on page 12 of "Striking a Balance" explains the structure of our industry and the fact that a separate trade association, the UK Petroleum Industries Association (UKPIA), represents the downstream industry. Discussion on how best to take forward this debate by the UK operating companies has led to the following commitments:
- As UKOOA, we will communicate the linkages between ourselves and other companies and bodies involved with our products and add this to the UKOOA web-site during 2001.
- During 2001, a number of the integrated members of UKOOA will explore the issues of sustainability with their companys downstream operations, and will share learning points from these discussions. In addition, some companies are exploring other possible fora for hosting a debate around the overall consideration of the full value chain.
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The relevant linkage with other companies and bodies have been added to the UKOOA Website. (See About UKOOA Introduction)
Full value chain sustainability must address helping users of hydrocarbon products to use those products more efficiently and productively. The UK downstream industry has taken a global lead in making available to customers cleaner fuels, such as low sulphur fuels, enabling auto manufacturers to introduce new more efficient motor vehicle engines and hence deliver more miles for the same quantity of fuel. These actions will increasingly enable end customers to emit lower and lower levels of GHGs.
UKOOA has developed a dialogue with the UK Petroleum Industry Association, whose members are the refiners and distributors of petroleum products to the downstream markets, on a range of issues arising from the UKOOA strategy. UKPIA is currently considering how it might progress the concept of a sustainability strategy in the context of a highly competitive downstream market. Its work is focusing on eight issues health and safety, the environment, fuel specifications, training, emergency response to supply disruption, the case of the downstream industry, explaining pricing mechanisms, taxation and duty on petroleum products.
UKOOA also has held preliminary discussions with the Chemical Industries Association, which has developed its own environmental strategy 'Responsible Care'. Earlier this year the Chemical Innovation and Growth Team was launched with government to take a strategic look at the longer term issues facing the UK chemicals industry, reporting later this year. UKOOA has also debated relevant aspects of its sustainable development with the Institute of Petroleum.
The offshore industry now co-operates closely with both the downstream petroleum sector and the chemical industry over workforce development and skills issues through cogent the joint national training organisation for theses three industries, which share many common issues relating to potential skill shortages and the need to attract future talent.
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BOX: Fossil Fuel Alternatives
The ultimate in decarbonisation is no carbon at all.
There are two main ' zero vehicle emission' alternatives to fossil fuels for road transport: battery driven electric vehicles, or fuel cell driven electric vehicles (which use hydrogen as a fuel to generate electricity). The downstream industry, in addition to providing cleaner hydrocarbon fuels, is supporting research into these fossil fuel alternatives through a number of partnerships with vehicle manufacturers. Except where commercial sensitivities constrain us, we are sharing information with others.
UKOOA members (the larger integrated companies) are also investing in renewable energy development, most particularly in offshore wind and solar. UKOOA members will be supporting the Energy Intermediary Research Institute (IRI), an initiative led by Scottish Enterprise National, through board level leadership, participation in the research board and the provision of information on the future R&D demands of the energy sector. These institutes (Energy is one of three alongside Communications and Biotechnology) will focus on the commercialisation of R&D. Aberdeen is a contender for the location of the Energy Institute. Industry support is part of increasing local capability in this mature phase of North Sea development. (See Commitment No.36 and the long term issues of local communities)
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Sustainability Strategy Commitments