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While we do not assess all impacts associated with upstream activities, such as waste management or spill response, these are covered by other parts of the Committee’s work [1]. Oil and gas reserves in UK waters were last assessed by DECC (now BEIS) to total 34 billion barrels of oil equivalent. Including land-based reserves they total around 200 billion barrels of oil equivalent (bboe). The UK has a proven reserve base, but it does not produce more than half its gas needs and only about one third of its oil [2]. As a consequence the UK imports over two-thirds of its crude oil needs. In 2016 these imports totalled 957 thousand barrels per day (bpd) [3], equivalent to around 28% of all energy consumed in the UK, including heating and power generation. Greenhouse gas emissions The largest impact associated with hydrocarbon production is GHG emissions. A key part of the Committee’s remit is advising on how to reduce these emissions from the UK economy as a whole, but this report examines upstream activities in detail. In order to do so we consider all sources of greenhouse gas emissions associated with oil and gas production across their entire lifecycles [4]. The GHG impacts are shown for exploration; field development (which includes the build-up phase); and decommissioning. We also compare UK onshore reserves to other countries’ upstream activities, using a number of emissions intensity indicators. We find that total direct CO2 equivalent greenhouse gas emissions from oil production in 2016 were 19 million tonnes (Mt). This figure is derived by adding together all the emissions reported under Scope I and II (as required by BEIS) [5]. The majority of these emissions come from upstream activities, with around two-thirds being attributable to exploration and production. As we expect there are additional emissions in downstream activities such as refining that would not be captured under our analysis [6]. We note that this figure is a conservative estimate because it does not account for indirect CO2 emissions, which includes those caused by the burning of fossil fuels to produce energy. In terms of greenhouse gas intensity we find that in 2016 oil production onshore in the UK had an average GHG intensity of 43 kg per barrel equivalent (bboe) [7]. This is higher than comparable figures for other countries, including Norway with a value of 35.8 kg/ bboe and Russia at 40.1 kg/ bboe[8]. It should be noted that there are many factors affecting GHG emissions from upstream activities, which makes it difficult to compare different regions directly [9]. These include the age of facilities; whether oil is extracted via conventional or unconventional techniques (for example fracking); and differences in reporting methodologies. In addition exploration data for Scotland are not yet available so we do not include this country in our comparisons with other European countries, but note that they have a lower GHG intensity than the UK (42 kg/ bboe). A key consideration is whether emissions from hydrocarbon production will be offset by the benefits of using fossil fuels. The Committee’s sixth report highlighted how oil and gas can help decarbonise other sectors [10]. There are currently around 9 million people in the UK who do not have access to reliable heating, which is a major challenge for meeting carbon budgets [11]. Our analysis of upstream activities cannot be used to advise on this issue as it does not capture downstream emissions. However, our figures show that oil and gas production in the UK still results in significant GHG emissions, even if they are currently lower than historical levels (see Figure 2). Figure 2: Total greenhouse gas intensity of upstream operations onshore, 1990 to 2shift-to-renewables target. In order to reach net zero carbon emissions by 2050 there would need to be a complete transition away from fossil fuels [12]. This report does not cover the impacts of this potential future scenario but it is worth highlighting that even if production were phased out entirely, hydrocarbons are still likely to remain in reserves (for example, due to storage). However, we do note a recent study by Caitlin Langlands at Chatham House which suggests that an accelerated shift to renewables would reduce the amount of UK oil and gas production needed to meet energy demands. This could potentially decrease GHG emissions from upstream activities [13]. The report also shows how important it is for other countries, especially in North America (see Figure 3), to move away from fossil fuels if there are to be any hopes of limiting global warming [14]. Water usage The next section considers water use and pollution associated with upstream activities. Water resources in the UK have been increasingly scarce over recent years (see Figure 4). There is a strong link between oil and gas production and increased abstraction of freshwater, as well as impacts on river quality caused by spills [15]. This report does not provide a comprehensive analysis but rather focuses on the key issues associated with upstream activities. A common metric used to assess water use in the oil and gas industry is ‘thirst’ (or equivalents), which measures water volume per barrel of hydrocarbons produced [16]. Our figures show that UK onshore operations had a thirst value of 0.37m3/ bboe in 2016, meaning that around half the volume of freshwater used is returned to natural systems after treatment [17]. This compares well with Norway’s figure of 4.9m3/ bboe and Russia’s figure of 5.8 m3/ bboe [18]. However, it should be noted that these figures do not take into account the water used in producing oil or gas (for example to power equipment). They also do not reflect other environmental impacts associated with freshwater usage such as salinisation and habitat destruction due to river diversions. It is therefore important for policymakers to consider a wider range of indicators when assessing potential threats to the UK’s water resources [19]. It should also be noted that while thirst values are useful, they can only provide a broad-brush picture of water usage and do not reflect local variation across different sites. This is partly due to the wide variety in hydrocarbon production methods used throughout the country (for example, conventional versus unconventional) which affects how much freshwater may be required [20]. The Committee’s seventh report highlighted a number of potential impacts on water resources from upstream activities, including climate change-related risks such as flooding [21]. In addition to GHG emissions and the use of freshwater, there are also concerns about pollution associated with hydrocarbon production. Oil spills can have significant environmental consequences for aquatic life and river ecosystems (see Figure 5). As we only consider upstream activities in this section it is important to note that downstream impacts (for example from refining) would not be captured by our analysis [22]. Figure 3: Greenhouse gas emissions intensity of onshore hydrocarbon production, per barrel equivalent produced, 1970-2016. Source: OGUK/Energy Institute [23]. Figure 5: Number and volume of oil spills in UK water bodies from 2004 to 2018 [24] [Source: Environment Agency]. Decommissioning The final section considers the impacts associated with decommissioning, which is a key aspect of the lifecycle. Decommissioning can include site closure and removal or reclamation activities such as cleaning up contaminated sites. This process is necessary to ensure that production facilities are removed safely (see Figure 6). In our analysis we only consider decommissioning costs associated with oil onshore in the UK. Our figures suggest these can be substantial, amounting to around £2 billion over the next two decades [25]. This estimate is based upon a number of assumptions and does not include all potential future activities such as well abandonment or offshore decommissioning (for example from rigs). In addition it only looks at onshore operations in England, Wales and Scotland but ignores developments in Northern Ireland. It should be noted that this figure is a conservative estimate based upon published plans for oilfield closure costs by the industry body OGUK [26]. However there are significant uncertainties associated with such figures, particularly given recent changes to legislation relating to decommissioning activities [27]. Our analysis also shows that in terms of water usage and pollution (see Figures 4 & 5), decommissioning has lower impacts than exploration or production. However, this is not necessarily the case for other environmental issues such as habitat loss from site closure. The Committee’s seventh report highlighted how important it is to consider a range of indicators when evaluating potential risks to local wildlife and habitats [28]. Figure 6: Decommissioning costs for UK onshore oil production sites, including pre-existing facilities (see Annex A) from 2019-30. Source: OGUK/Energy Institute [29]. Conclusion and recommendations This report examines the environmental impacts associated with upstream activities in order to provide a better understanding of how hydrocarbon production affects different aspects of UK society and natural resources. In particular, it considers GHG emissions intensity and water use from exploration to decommissioning across onshore oil and gas reserves (see Box). It also discusses the potential impacts of a complete transition away from hydrocarbons in order to meet climate targets. The report has several key messages, including: - GHG emissions intensity from UK upstream activities is lower than that for Norway but higher than Russia. Exploration and production are by far the largest contributors to GHG emissions impacts across all stages of hydrocarbon extraction (see Annex B). Decommissioning also contributes significantly in comparison to other activities although it has a relatively low environmental footprint per stage [30]. - Oil onshore decommissioning is likely to be expensive and may not be fully recoverable. The estimates we have based our analysis upon are conservative given that there is uncertainty around future regulations, oil prices and potential impacts of new technologies such as carbon capture and storage [31]. - Water usage from upstream activities appears relatively low but this does not reflect other environmental issues associated with freshwater use. The UK has some of the highest levels of water scarcity in Europe, which means that even a small amount of freshwater consumption could have significant impacts on local ecosystems (see Annex C). - Upstream activities are likely to continue to produce pollution from oil spills and habitat destruction, highlighting the importance for policymakers to consider a range of indicators when assessing threats to natural resources. Decommissioning is also expected to have some impact on local wildlife [32]. We recommend that: - Policymakers should include upstream activities in broader environmental strategy, which considers the full lifecycle and cumulative impacts of hydrocarbon production. This could help identify opportunities for better management and reduce emissions from oil operations across different stages (see Annex D). - Oil decommissioning plans are subject to a wider range of checks to ensure that they consider all potential future activities, including well abandonment [33]. We recommend the Government establishes an industry code of practice on decommissioning best practices and introduces robust monitoring systems for both exploration and production sites. - Policymakers should adopt new approaches such as carbon capture and storage to reduce emissions from upstream activities, especially when it comes to difficult or unconventional operations [34]. - More detailed data on water consumption across the UK’s hydrocarbon industry is needed in order for policymakers to make evidence-based decisions. We recommend that Oil and Gas Authority (OGA) publishes further information, including a breakdown of freshwater use by exploration, production and decommissioning activities [35]. In addition, we hope this report will inform the Government’ Written on Friday, 10 March 2014 - Published on Saturday, 29 May 2016 The first thing that strikes you about this book is its format. It consists of a series of short essays – or ‘chapters’ as they are called here – each no more than a couple of pages long. This makes it easy to dip into at any point, but also means that the whole runs together rather like an extended postcard from the frontier: full of interesting facts and gossip (about how in 1920s America people would throw away their unwanted hats by draping them over fences), but without enough narrative to make it feel like a story. The second thing that strikes you is the subject matter. The book explores what happens when different cultures, technologies and ideals come into contact: specifically in this case with Chinese workers on American railroads at the end of the nineteenth century. It’s fascinating stuff – although perhaps not quite as fascinating as it first seems. The author (Bill Wasik) begins by asking why people are attracted to stories about strangers, and then goes on to explore how we make sense of them through anecdote: the story of a Chinese worker who was taken into court for murdering his white mistress in 1875 is used as one example. He follows this by examining the history of racial discrimination against Chinese workers, and then focuses on their interaction with railroads – because “railroads became an iconic symbol of America’s age of steam-driven industry”. He argues that they were a useful way to understand the nature of social change: Railroads changed everything. They moved people from rural areas into cities; connected them in ways never before possible, and helped make some regions more important than others (…) The railroad companies needed lots and lots of workers, so they recruited from around the world – especially China. It wasn’t long before Chinese laborers started showing up on America’s railway crews. The story of how this came about is fascinating, as it involves a lot of back-and-forth between two cultures that had different ways of dealing with strangers (the author uses the terms “hierarchical” and “egalitarian” to describe them), and an American corporate system based on ‘survival of the fittest’. It starts in China: as railroads were built across the country, they brought Chinese people into contact with Americans for the first time (the author explains that this was one reason why they did not already know about each other). The book is full of interesting stories from this period – such as how a group of men who worked on the line in California managed to persuade their company bosses to let them form an amateur boxing club. The American railroad companies were always looking for cheap labor, and found it among Chinese immigrants: They had little use for Americans at first (…) They didn’t need to treat workers with dignity if they could get by without paying much attention to their needs – or even caring about them. The more people that companies hired from the East, the less likely it was that any of those people would demand respect and fair treatment. The author does a good job in exploring this dynamic through anecdote: he talks about Chinese workers on railroads who had been told to take care of their own wives – but were then horrified when they saw the appalling conditions that many married women faced as immigrant labourers. In America, meanwhile, white people were often racist and suspicious towards immigrants: “The Chinese were different in a number of ways, from how they looked to how they spoke (…) But what was most disturbing – at least for Americans who had always been used to the idea that everyone should be treated equally – was the way in which some people seemed to have no problems with treating Chinese workers as second-class citizens.” Railroads provided a good context because, unlike other industries (such as mining), they were owned by private companies. This meant that they could treat their employees however they liked: “Because railroad workers didn’t belong to unions or receive government benefits like the Civil War pension law, there was no legal way for them to demand respect and fair treatment.” As a result of this dynamic, Chinese men tended not to marry white women. When they did – as in the case above where one married his boss’s wife – it created an awkward situation for everyone involved: “For the managers who had encouraged him to take on a spouse, there was no way to avoid paying her.” But this didn’t stop some white women from trying. The author tells the story of Mary Fields (‘Stagecoach Mary’) – one of America’s most famous female cowgirls: she travelled around working for different railroad companies in Montana and Idaho, where Chinese workers were also employed. She became friendly with them, but was later accused by a white man of having an affair with her boss (one which would have been impossible as the two spoke no Chinese). She went to trial and won – but when she left work afterwards it seems that one of the men who had alleged this abuse sent a note saying “the only difference between you and me is colour”. A few years later, Fields was attacked by members of the Ku Klux Klan in Montana. As well as exploring these kinds of stories – which can be fun to read about – Wasik also uses them to look at larger social trends: such as how racial attitudes changed during this period (he argues that it started with railroads and then spread to other industries). He ends the book by considering what we have learned from all of this, and whether the situation is any better today. Unfortunately I found some things hard to follow in Wasik’s writing: for example there are several pages devoted to an analysis (or rather a series of footnotes) on how different newspapers reported stories about Chinese railroad workers at the time. He argues that this shows us “the importance of media in shaping social attitudes towards race, class and immigration”, but it is difficult for non-historians like me to make much sense of his argument (which seems largely based on the way one newspaper covered a story while others didn’t). On the whole though he does an interesting job. The book has some useful ideas – such as how racial stereotypes are often just “hypotheses about strangers” that we don’t bother to question if they seem plausible (“if you see a black man in your neighborhood, it makes sense for you to assume he’s poor and uneducated,” the author argues). He also shows how railroads provided a window into some of the ways in which American society was changing at this time: As people from different parts of the country began mingling more frequently on their journeys, they became aware that other regions had very different traditions and values. This wasn’t always welcome news; it forced Americans to face the fact that there were no fixed rules for social interaction or conduct – a reality which was both liberating and disturbing. Railroads didn’t make America more equal, of course: instead they showed how much work still needed to be done. But by encouraging us to think about it in this way we can perhaps hope that today’s society will continue to improve.

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