The Circular Economy in the Oil and Gas Industry: A Solution for the Sustainability of Drilling and Production Processes

Today’s world population consumes too many natural resources and pollutes the environment excessively. The fact that the world population reached 8 billion people in 2022 and, according to United Nations estimates, will grow to 9 billion by 2037, suggests that this problem will become even more acute in the future. Population growth also means an increase in energy demand, which is difficult to meet from renewable sources. A mix of renewable and non-renewable energy sources (fossil fuels) is more realistic. For this reason, the application of circular economy principles in the oil and gas industry is necessary. The following text shows the possibilities of applying these principles in the upstream business areas (drilling and oil and gas production) of energy companies. In this sense, drilling and production projects offer opportunities to reduce the volume and/or toxicity of waste generated and to recover, reuse or recycle waste. Drilling waste reduction opportunities include changes in the handling of additives and improvements in drilling technology, reuse includes the use of drilling waste in another location or for another purpose, while waste valorization includes the recovery of materials from potential discharges for reuse or recycling (e.g. the use of produced sand and cuttings in the cement and brick industry or road construction). Reuse of produced water in oil fields involves limited treatment and re-injection into a suitable underground formation, while reuse for irrigation, wetlands or industrial purposes is possible after extensive treatment. Emissions from gas flaring can be significantly reduced by treating the gas in an existing processing plant and injecting it into an existing pipeline system or by utilizing it for power and/or heat generation or gas production. Abandoned wells can be utilized for the permanent disposal of waste fluids and carbon dioxide, as energy storage or for geothermal energy generation. Many of the tools and equipment used in the drilling and production of wells are made of steel, which opens opportunities for recycling. When decommissioning an onshore drilling rig, processing plant or offshore platform, companies are already working to remove anything that can be recycled. In some cases, parts of the offshore substructure are turned into useful artificial reefs. In conclusion, the oil and gas industry needs to strike a balance between the need for further investment in optimizing the hydrocarbon value chain and investing in a low-carbon transition to a more sustainable, circular future.