CEG 809: Environmental Science and Management.

The Extractive Industry: is that industry whose operations involve the harvest of
resources such as metals, minerals, aggregates and other items from the earth.
Examples include oil and gas drilling, mining, dredging, fishing, lumbering, hunting
and quarrying.

The Extractive Industries are generally divided into two:

a. Oil and Gas.

b. Solid Minerals.

Importance of the Extractive Industry.

a. Promote growth and development in any given economy

b. Help in the education and health systems and other forms of human and
social capital
c. Growth and development through enhanced revenue derived from export
earnings
d. Job creation
e. Knowledge, skill and technology transfer
f. Provision of infrastructure and social services.

Note: Activities in the extractive industry sector can cause damage to the
environment and reduce economic growth if not carried out in an environmentally
sound manner.

Nigeria Extractive Industries Transparency Initiatives (NEITI).

NEITI represents a national domestication of the global Extractive Industries

Transparency Initiative (EITI). Its mission is to cultivate a culture of transparency,
accountability, due process and zero – tolerance for corruption in Nigeria’s
extractive industries, for the benefit of the citizenry.

Profile on Energy Resources in Nigeria.

Nigeria holds great potential energy resources (renewable and non-renewable).

The level of utilization of these resources is below expectation. However, in the
course of the utilization of these resources, the environment is compromised. This

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course presents strategies on the sustainable utilization of these resources. These
energy resources include;

a. Crude oil
b. Natural gas
c. Coal
d. Solar
e. Hydro
f. Wind
g. Nuclear.

Crude Oil Production Processes.

a. Extraction from Underground Reservoir

b. Processing to purify the extracted crude
c. Conversion to finished products.

Extraction: is the process by which usable petroleum is drawn out from beneath
the earth’s surface location. Extracting crude oil normally starts with drilling wells
into an underground reservoir. The drilling process is facilitated by the addition of
drilling fluid (mud) and sometimes injection water to increase oil production from
the formations.

Drilling Fluid Additives.

a. Barite
b. Bentonite
c. Defoamers
d. Emulsifiers
e. Filtration control additives
f. Flocculants
g. Gelling agents
h. Lubricants.

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 Fig. Rig on a Well.

Processing: Typical Production fluids are a mixture of Oil, Gas and Produced
Water. The crude oil is transported from the production wells through pipes to
Flow Stations for further processing. Crude oil flow station is a processing facility
where water, gas and other impurities are separated from crude oil before it is
moved over distances through pipelines, pumping stations or into export terminals.
Gas Flaring also occurs in the flow station.

Fig. Flow Station.

Petroleum Refining: Oil refinery or petroleum refinery is an industrial process

plant where crude oil is transformed and refined into more useful products such as
petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene,
liquefied petroleum gas, jet fuel and fuel oils.

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 Fig. Oil Refinery

Interfaces between the Environment and the Oil and Gas Industry: Problems
and Challenges.

Produced Water: is a term used in the oil industry to describe water that is
produced as a by-product along with the oil and gas. Oil and gas reservoirs often
have water as well as hydrocarbons, sometimes in a zone that lies under the
hydrocarbons and sometimes in the same zone with the oil and gas.

Produced water may originate as natural water in the formations holding oil and
gas or can be water that was previously injected into those formations through
activities designed to increase oil production from the formations.

Produced water represents the largest volume waste stream in oil and gas
production operations.

In 2003, an estimated 667 million metric tons (about 800 million m 3) of produced
water were discharged to the ocean from offshore facilities throughout the world.

Chemical Composition of Produced Water.

Produced water is a complex mixture of dissolved and particulate organic and

inorganic chemicals. These chemicals include;

a. Water- soluble low molecular weight organic acids

b. Monocyclic aromatic hydrocarbons (BTEX)

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 c. Total Polycyclic Aromatic Hydrocarbons (PAH) and higher molecular weight
alkylphenols- the main toxicant in produced water
d. The heavy metals and those most frequently present at elevated
concentrations include barium, iron, manganese, mercury and zinc.

Impacts of Produced Water.

a. Alkyl phenols and PAHs from produced water accumulates in marine

organisms such as Cod and blue mussel
b. Naphthenic acids and PAHs may disturb reproductive functions of both
humans and lower animals
c. PAHs are known potent carcinogens, they may cause DNA damage, cardiac
function defects, fish growth may be affected
d. Alkylphenols have been documented to have hormone-disrupting effects
e. Effect of heavy metals on liver, kidney and the central nervous system.

Treatment of Produced water.

The treatment of produced water will differ according to the intended disposal
method or reuse purpose. The best treatment option is treatment for reuse as
water supply for towns, agriculture and industry. Commonly used treatment
techniques are;

a. Filtration
b. Cyclonic separation
c. Flotation
d. Evaporation.

Available Options for Disposal.

a. Most onshore produced water is re-injected to underground formations after

treatment to acceptable standards
b. Most offshore produced water is disposed or discharge to the ocean
following treatment
c. Reuse for irrigation or as industrial process water.

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Heavy Metals.

Heavy metals are metals that have a density of greater than 5 gcm -3 and an
atomic number greater than 20, and occur naturally in rocks and soils, but
concentrations are frequently elevated as a result of pollution.

Heavy metals are also referred to as trace elements because they occur at very
low levels of a few ppm or less in a given system.

All trace elements are toxic to living organisms at excessive concentrations. But
some are essential for the normal healthy growth and reproduction by either plants
or animals at low but critical concentrations. These elements are referred to as
essential trace elements or micronutrients, e.g. Co, Cr, Cu, Mn, Mo, Ni, Se, Zn and
Fe etc.

Others are referred to as non – essential because of no known essential function,

e.g. Ag, As, Ba, Cd, Hg, Pb, Sb etc.

Impacts of Heavy Metals.

Most heavy metals have a tremendous affinity for sulphur and disrupt enzyme
function by forming bonds with sulphur group in enzymes.

Protein Carboxylic acid (-COOH) and amino (-NH2) groups are also chemically
bound by heavy metals.

The effects of acute Cd poisoning in humans are very serious. Among them are high
blood pressure, kidney damage, destruction of testicular tissue and destruction of
red blood cells.

Acute Pb poisoning in humans causes severe dysfunction in the kidneys,

reproduction system, liver, brain and central nervous system. Sickness or death
results ultimately. Pb is referred to as a cumulative poison.

Among the toxicological effects of Hg are neurological damage, including

irritability, paralysis, blindness or insanity and birth defects.

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 GAS FLARING.

Gas is flared into the atmosphere, it is therefore essential to understand the

atmosphere, its stratification and composition.

Atmosphere and its Stratification.

The atmosphere can be defined as the relatively thin gaseous envelope surrounding
the planet Earth.

It is a protective blanket which nurtures life on the earth and protects it from the
hostile environment of the outer space.

It is the source of CO2 for plant photosynthesis and of oxygen for respiration.

The atmosphere serves a vital protective function, absorbing harmful UV radiation

from the sun and stabilising earth’s temperature.

Unfortunately, the atmosphere also has been used as a dumping ground for many
pollutant materials, a practice which causes damage to vegetation and materials,
shortens human life and alters the characteristics of the atmosphere.

Stratification:

The atmosphere is stratified on the basis of the temperature/density relationships.

The lowest layer of the atmosphere extending from sea level to an altitude of 10
to 12km is the TROPOSPHERE. It is characterized by a generally homogenous
composition of major gases from constant mixing, decreasing temperature with
increasing altitude (about 15oC to – 56oC).

Above the troposphere is the STRATOSPHERE in which the temperature rises to a

maximum of about -2 oC with increasing altitude. This layer extends to about 50km
above the sea level. The stratosphere contains the Ozone Layer which absorbs the
dangerous UV rays from the sun. The heating effect in the stratosphere is due to
the absorption of UV radiation by ozone.

Above the stratosphere is the MESOSPHERE with a further decrease in temperature

to about -92 oC at an altitude around 85km. the decrease in temperature is due to
absence of ozone.

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The EXOSPHERE is the upper region above the mesosphere from where molecules
and ions can completely escape the atmosphere.

Extending to the far outer reaches of the atmosphere is the THERMOSPHERE.

Fig. Major regions of the Atmosphere.

Atmospheric Composition.

The atmosphere is a mixture of gases.

Two major components;

 Nitrogen, 78.08% (by volume)

 Oxygen, 20.95%

Two minor components;

 Argon, 0.934%
 Carbon dioxide, 0.036%

In addition to Ar, four more noble gases;

 Neon
 Helium
 Krypton
 Xenon

and trace gases;

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  Methane
 Carbon monoxide
 Nitrous oxide
 Sulphur dioxide
 Nitrogen oxides (NOx)
 CFC
 Ozone

Fig. Major and minor constituents of the Global Atmosphere.

Gas Flaring.

Gas flaring is the burning of natural gas that is associated with crude oil when it is
pumped up from the ground. In petroleum – producing areas (e.g. Nigeria) where
insufficient investment was made in infrastructure to utilize natural gas, flaring is
employed to dispose of this associated gas.

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 Fig. A Flare Stack.

Nigeria flares over 76% of its natural gas.

Nigeria has one of the worst rates of gas flaring in the world, flaring about 13
million cubic meters of gas annually.

In Europe, 99% of associated gas is used or re-injected into the ground.

Impacts of Gas Flaring.

 Health Impact: flaring has a substantial impact on the health and

environment of land owners who live near a flared well. Some of the
pollutants resulting from incomplete combustion of the associated gas are;
SO2, NOx, Particulates, HC, CO etc. High noise levels are also generated
from the flare point. Health effects include cancer, neurological,
reproductive and developmental effects, respiratory and cardiovascular
diseases, high blood pressure from noise, annoyance, hearing loss, sleep
disturbance etc.
 Global warming: the process of flaring contributes directly to global
warming by the direct emission of two main greenhouse gases (CO 2 and CH4)
into the atmosphere. Global warming gives rise to Climate Change.
 Acidification of soils and rainwater through the emissions of SO2 and NO2
 Contamination of both surface and ground water by BTEX
 Increased deforestation
 Corrosion of metal roofs and the defacing of monuments/buildings.

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Global Warming and Climate Change.

Climate: climate is generally defined as a description of the average (or typical)

behaviour of the atmosphere. Therefore, climate is the aggregation of the
weather. It is usually expressed in terms of mean conditions and variances.

One of the fundamental climate variables is the annual average surface

temperature.

Other variables of interest include averages of humidity, wind speed, the

frequency and amount of rainfall and the extent and frequency of floods and
droughts.

Climate Change: a long – term change in the earth’s climate or of a region on

earth.

Global Warming: the increase in earth’s average surface temperature that causes
corresponding changes in climate and that may result from the greenhouse gases.

The greenhouse gases are CO2, CH4, N2O, H2O, CFC and O3.

The greenhouse gases give rise to greenhouse effect that leads to energy
imbalance in the atmosphere, causing global warming.

Greenhouse Effect.

The greenhouse effect is both a Natural feature of the earth’s atmosphere and also
Anthropogenic.

Without the natural greenhouse effect, we would not be here.

If the earth had no natural greenhouse gases in the atmosphere, its average
surface temperature would be about 255k (-18oC), rather than the comfortable
288k (15oC) found on earth.

The difference in temperature is due to the presence in the atmosphere of natural

greenhouse gases.

These gases balance absorption of solar radiation by emission of infrared radiation

to space.

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Global warming is as a result of anthropogenic greenhouse gases that have
increased at a rapid rate in the last century.

These gases produce greenhouse effect by allowing incoming solar radiant energy
(UV radiation) to penetrate to the earth’s surface while reabsorbing infrared
radiation emanating from it.

Consequently, greenhouse effect may be defined as effect on the energy balance

of the earth’s atmosphere, due to the differences in the energy received from the
sun as UV and that re-radiated as IR.

Greenhouse effect gives rise to Global Warming that leads to Climate Change.

Fig. Schematic diagram of the Greenhouse Effect.

How Global Warming Changes the Climate.

By increasing the average global surface temperature, the temperature structure

of the atmosphere is altered.

Increase in atmospheric temperature leads to increases in precipitation from

increased evaporation of water vapour from the earth surface.

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Increase in precipitation leads to increases in rainfall and its erratic distribution
and pattern.

Increase in the moisture content of the atmosphere changes the humidity.

Increase in global surface temperature alters wind velocity which can affect the
frequency/intensity of natural disasters like hurricanes etc.

Impact of Climate Change.

 More frequent wildfires as currently being experienced globally.

 Increase in flooding from incessant rainfall and sea level rise.
 Increase in the number, duration and intensity of tropical storms.
 More droughts and heat waves which could compromise human health.
 Some diseases and pests could be more prevalent.
 Agriculture and food supplies could be impacted. Changing climatic patterns
could require changes in cropping patterns, perhaps bringing benefits to
some regions, while negatively impacting others.

Oil and Gas National Environmental Policies, Laws and Standards.

Institutions involved in formulating and implementing environmental policies,

strategies, laws and standards for the oil and gas industry include:

DPR – Department of Petroleum Resources

FMEnv – Federal Ministry of Environment

NOSDRA – National Oil Spill Detection and Response Agency

NESREA – National Environmental Standards and Regulations Enforcement Agency

Various States Environmental Protection Agency/State Ministries of Environment.

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Principles of the Nigerian National Policy on Environment.

“Nigeria is committed to a national environmental policy that will ensure

sustainable development based on proper management of the environment. This
demands positive and realistic planning that balances human needs against the
carrying capacity of the environment”.

This requires that a number of complimentary policies, strategies and laws are put
in place which should ensure among other things that;

 Environmental concerns are integrated into major economic decision-making

process
 Environmental remediation costs are built into major development projects
 Economic instruments are employed in the management of natural resources
 Environmentally friendly technologies are applied
 Environmental Impact Assessment (EIA) is mandatorily carried out before
any major development project is embarked on.

Environmental Instruments to drive Environmental Policies and Strategies.

Some of these environmental instruments include:

 EIA – Environmental Impact Assessment

 EMP – Environmental Management Plan
 EA – Environmental Audit
 EER – Environmental Evaluation Report
 PIA – Post Impact Assessment
 BLS – Basic Life Support.

The EIA Decree No. 86 of 1992 is the most outstanding of these instruments. The
fundamental goals and objectives of the EIA Act are:

 To establish before a decision is taken by any person, authority, corporate

body or an incorporated body, including the Government of the Federation,
State or Local, intending to undertake or authorize the undertaking of any
activity that may likely or to a significant extent affect the environment or

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 have environmental effects on those activities, shall first be taken into
account.
 To promote the implementation of appropriate policy in all Federal lands,
States and Local Government Areas, consistent with all laws through which
the goal and objective in the above paragraph may be realized.
 To encourage the development of procedures for information exchange,
notifications and consultations between organs and persons, when proposed
activities are likely to have significant environmental effects on boundary or
on the environment of bothering towns and villages.

Environmental Protection.

Authorisation: What preliminary environmental authorisations are required before

commencing oil and gas- related activities?

Ans: The EIA Act requires all project proponents to prepare an EIA report setting
out the activity’s potential environmental impact and plans for preventing or
mitigating this impact. Reports must be approved by FMEnv and DPR.

Requirements: What environmental protection requirements apply to the

operation of oil and gas facilities?

Ans: Under the Environmental Guidelines and Standards for the Petroleum Industry
in Nigeria (EGASPIN), operators must obtain permits for all aspects of oil-related
effluent discharges from all point sources (i.e. gaseous, liquid, solid) and oil-
related project development.

In relation to Gas operations, the Associated Gas Re-injection Act requires

operators to obtain the Minister of Petroleum’s permission before flaring gas
produced in association with oil.

Breach: what are the consequences of failure to observe the relevant

environmental regulations and to what extent can operators be held liable for
environmental damage?

Ans: Any party that fails to comply with the provisions of the EIA Act is liable on
conviction to:

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  A fine of N100,000 or five years imprisonment in the case of an individual
and
 A fine of between N50000 and N1000000 in the case of a corporation.

Under the NOSDRA Act, a party that fails to report an oil spillage to the Agency
within 24 hours is liable to a daily penalty of N500, 000. Further failure to clean up
the impacted site can result in a penalty of N1000000.

Polluter Pays Principle.

The polluter pays principle is the commonly accepted practice that those who
produce pollution should bear the costs of managing it to prevent damage to
human health or the environment.

The polluter pays principle is part of a set of broader principles to guide

sustainable development worldwide. This principle underpins most of the
regulations of pollution affecting land, water and air.

Applying the Principle through a Carbon Tax or Emissions Trading System.

The polluter pays principle can be applied to greenhouse gas emitters through a
so-called Carbon Price. This imposes a charge on the emission of greenhouse gases
equivalent to the corresponding potential cost caused through future climate
change – thus forcing emitters to internalise the cost of pollution. In this way, a
financial incentive is created for a factory, for instance, to minimise its pollution
costs by reducing emissions.

The carbon price can make the polluter pay through two different policy
instruments:

 Price – based mechanism in the form of carbon tax, where the price of
pollution is determined by the rate of the tax for each tonne of greenhouse
gas emitted.
 Quota – based system, often referred to as cap – and - trade, or emissions
trading system. This sets a cap, or limit, or the maximum level of emissions
for a given period of time, and distributing permits or allowances for each
unit of greenhouse gas among firms that produce emissions. E.g.

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 recommended price, US $ 40 – 80/t CO2 by 2020 and US $ 50 – 100/t CO2 by
2030.

Pollution Prevention Pays Principle (3P+): This encourages the industry to invest
positively to prevent pollution.

The User Pays Principle (UPP): This is a principle in which the cost of a resource to a user
must include all the environmental costs associated with its extraction, transformation
and use.

The Principle of Intergenerational Equity: This principle requires that the needs of
the present generation are met without compromising the ability of future generations to
meet their own needs.

The Principle of Intra-generational Equity: This principle requires that different groups
of people within the country and within the present generation have the right to benefit
equally from the exploitation of resources and that they have an equal right to a clean and
healthy environment.

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