Managing climate change adaptation in oil and gas production

Abstract

Oil and gas production operations occur in widely diverse onshore and offshore contexts. The global industry has a long history of coping with climate variability, extreme climatic conditions and extreme weather events. Climate change, however, is projected to take the new climate beyond the range of historical variability in many places where oil and gas production facilities are located.

Oil and gas infrastructure often has an expected operational life of 50 years or more, which would take new operations to 2064 and beyond. This is well inside the timeframe predicted for substantial climate change with consequent risks to longer term operational continuity and supply chain security.

In recent years, the realities of climate change beyond pre-industrial age historical variability, and the associated business risks, have become accepted by the major global oil and gas industry players. Other stakeholders, including corporate, institutional and private investors and corporate regulators, are also becoming more assertive in their demands for corporate disclosure of climate change risks, adaptation management plans and evidence of effective implementation of adaptive measures.

Industry decision-makers need scientifically sound and robust data applied to their specific operations and business conditions to support business case-based investment decisions for new project feasibility, capital and operational expenditure, and the management of long-term strategic liabilities.

This extended abstract provides an overview of the complex and interconnected web of climate change effects that should be considered. It also outlines approaches that could be employed to manage the risks and meet stakeholder expectations.