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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Creating shared value through better management of water and waste in oil and gas

Yves Thélier
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Veolia.

The APPEA Journal 56(2) 554-554 https://doi.org/10.1071/AJ15060
Published: 2016

Abstract

In the oil and gas sector, access to water and disposal of liquid and solid waste can be an opportunity to create significant additional value rather than just an operational and environmental risk. With the growing number of oil and gas projects in water-scarce regions, the ascent of unconventional extraction methods, and the growing need for enhanced oil recovery in mature fields, treating and managing water is becoming increasingly complex. In addition, strict regulations for the disposal of (hazardous) wastes require advanced treatment and create pressure to close resource loops. Many of these pressures are felt by the Australian oil and gas sector as it is transiting into the operations phase in LNG developments. Turning water and waste management from a cost item into tangible financial benefits has never been so important for producers.

This extended abstract examines key strategic collaborative case studies built on shared value creation between global oil and gas operators and a global environmental services contractor. In contrast to a more traditional buyer-seller relationship, these strategic collaborations are built around joint project teams that identify and implement value creation opportunities in water and waste management, fully leveraging the unique knowledge and experience of both partners.

The extended abstract outlines this collaboration model, which consists of five distinct value creation levers including top-line improvements through increased production, bottom-line improvements through operational efficiencies, securing license to operate, de-risking of investments through financial engineering, and strengthening of brand value through sustainability and social engagement.

Yves Thélier is Vice President, Oil & Gas for Veolia and leads the company’s global business development efforts in oil and gas activities.

Yves joined Veolia's industrial water business in 1990 and has held various roles in engineering and business development disciplines. During that time he has built extensive expertise in wastewater treatment plant technologies, processes and solutions for oil and gas and petrochemical industries.

Yves also worked across other key business lines—such as hazardous waste—during his time at Veolia, and was active in setting up new hazardous waste activities in Europe and Asia. He holds a PhD in Chemical Engineering from Ecole Centrale in Paris, France.


References

Porter, M.E. and Kramer, M.R, 2011—Creating shared value: how to reinvent capitalism—and unleash a wave of innovation and growth. Harvard Business Review. Accessed: 14th September 2015. <https://hbr.org/2011/01/the-big-idea-creating-shared-value>.