Verified Environmental Statement 2010-2012
Transcription
Verified Environmental Statement 2010-2012
BP in the Gulf of Mexico bp.com/sustainability Verified Environmental Statement 2010-2012 About our report In this Verified Environmental Statement, we look at the environmental impacts of our offshore exploration and production activities in the Gulf of Mexico over the calendar years 2010, 2011 and 2012. The report provides insight into our performance and management approach in four key areas of environmental impact: atmospheric emissions, permitted water discharges, spills and waste. Unless otherwise stated, the data are limited to facilities at BP’s major offshore operating sites in the Gulf of Mexico and include data from production and drilling activities. Deepwater Horizon data excluded This report does not cover data related to the Deepwater Horizon accident and spill that occurred in the Gulf of Mexico in 2010 as the accident and its aftermath are the subject of ongoing litigation. Please visit bp.com/gulfofmexico to learn more about the investigations, spill response, continuing research on the impacts of the spill, and the work of BP’s Gulf Coast Restoration Organization. Independent verification BP is committed to the quality and clarity of the data presented in this report, which is verified by an independent third party. BP in the Gulf of Mexico bp.com/sustainability Verified Environmental Statement 2010-2012 Cover image BP’s Thunder Horse platform in the Gulf Of Mexico Version 1 Contents Overview 2 Letter from regional president BP Gulf of Mexico regional president Richard Morrison reflects on 2010 to 2012 environmental performance. About BP 4 Who we are 6 Where we work Our portfolio and people in the Gulf of Mexico. The platforms we operate in the Gulf of Mexico. 5 What we do 7 How we work What we do as a business in the Gulf of Mexico. Our operating management system and how we manage environmental risk. Environmental performance 10 Identifying our impacts 13 Spills Information on our key areas of environmental impact. How we are building our capabilities to help reduce the risks of spills. 11 Atmospheric emissions 14 Waste How we are striving to reduce the generation of greenhouse gas emissions. How we manage waste from our offshore operations. 12 Permitted water discharges 15 Way forward How we monitor and report permitted discharges to water. Our commitment to pursuing continual improvement. Our reporting and performance data 16 Verification statement 17 BP in the Gulf of Mexico in figures Statement from Det Norske Veritas about its verification process and conclusions. Data on our environmental performance, 2010-2012. Acroynyms and glossary Contact us Contents Verified Environmental Statement 2010-2012 1 Letter from BP Gulf of Mexico regional president This Verified Environmental Statement outlines the environmental performance of BP’s Gulf of Mexico major operating sites from 2010 through 2012. This was a period of great challenge in the Gulf region. It was also a period of great change as we refocused with deep determination on the priorities of becoming an even safer, stronger and simpler BP. During this period, we made significant progress towards implementing greater standardization and clearer checks and balances to assure that we manage the linked areas of safety, operational integrity and environmental risk in a systematic way. Reflecting on the Deepwater Horizon accident Our commitment is to continuously improve in the areas of safety and environmental performance, driven by a systematic approach to managing our operations. Richard Morrison Regional President, BP Gulf of Mexico The explosion of the Deepwater Horizon drilling rig on 20 April 2010 led to the loss of 11 lives. This tragic fact remains foremost in the minds of all of us at BP and particularly those of us who work directly in the Gulf. We are determined that such an accident will never happen again and have taken measures to strengthen the oversight of our activities. The events leading up to the Deepwater Horizon accident and the subsequent mitigation actions are the subject of ongoing litigation and hence will not be covered in this report. Please visit bp.com/gulfofmexico to learn more about the investigations, spill response, continuing research on the impacts of the spill, and the work of BP’s Gulf Coast Restoration Organization (GCRO). GCRO is a separate entity established to provide leadership and dedicated resources to ensure that BP meets its commitments to efforts to restore the Gulf Coast. Charting environmental performance This Verified Environmental Statement addresses the environmental performance of our operations in the Gulf of Mexico, with a focus on the atmospheric emissions, permitted water discharges, spills and waste of our producing platforms and drilling activities. Factors affecting some of our reporting metrics over the period included: • Production fluctuations associated with planned maintenance and improvement activity. • The temporary ban on new deepwater drilling between May and October 2010. • The divestment of our Pompano platform. We made improvements in environmental areas over this period, including work to reinforce our ability to help prevent and respond to spills. But we also recognize the need to press for further environmental advances. 2 Letter from BP Gulf of Mexico regional president Verified Environmental Statement 2010-2012 BP is the largest leaseholder of deepwater assets in the Gulf of Mexico. We have a long history of development in the region and, we hope, a promising future: 2012 was a year of growth with seven BP-operated drilling rigs in the Gulf of Mexico by year end. However, we know we still have a great deal of work to do to rebuild trust in our operations. Much of this work is well underway. During the timeframe covered by this report, BP undertook a comprehensive review of safety and operational procedures and took a number of measures to further improve safety and risk management, including environmental risk: • The development of a new safety and operational risk group tasked with providing an independent assessment of risk. • The launch of a state-of-the-art center in Houston to monitor live well information about our rigs in the Gulf. • The introduction of enhanced standards and procedures for our well control and drilling operations that exceeded existing regulatory requirements. Building reliable operations Deepwater operations are complex but our operational goals are simple: no accidents, no harm to people and no damage to the environment. As we pursue these aspirations, our commitment is to continuously improve in the areas of safety and environmental performance, driven by a systematic approach to managing our operations. Before taking on the leadership of BP’s Gulf of Mexico group in 2013, I spent two years as head of BP’s Global Deepwater Response team which has been sharing lessons from the 2010 oil spill with others around the globe. Nowhere have we examined those lessons more closely than here in the Gulf of Mexico. Turning lessons into action, we are striving to be both predictable in terms of reliable operations and progressive in terms of pursuing the technology and practices necessary for environmentally responsible operations. I hope that this Verified Environmental Statement gives you some meaningful insight into our approach. Richard Morrison Regional President, BP Gulf of Mexico About BP BP is one of the world’s leading international oil and gas companies. We aim to help meet growing global demand for energy in a responsible way. Our goals We strive to be a safety leader in our industry, a world-class operator, a responsible corporate citizen and a good employer. We expect all our contractors and their employees to act in a way that is consistent with our code of conduct. We are committed to meeting our regulatory obligations. In this section Focusing our operations and embedding our values to be an even safer, stronger BP. The place of the Gulf of Mexico in our global portfolio. Managing the impacts of our activities through our operating management system. More information online at: bp.com/OMS BP 3-D HIVE facility, Houston. In a highly immersive visualization environment (HIVE), BP teams study 3-D imaging of geological formations, production facilities, seismic analyses and well placement in a theater setting. About BP Verified Environmental Statement 2010-2012 3 Who we are We believe we have a positive role to play in shaping the long-term future of energy. BP’s operations across six continents provide our customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and petrochemicals for everyday items as diverse as paints, clothes and packaging. Seismic imaging researchers and highperformance computing analysts review research project results. 2,300+ employed in the Gulf of Mexico. Through our heritage companies, we have been a part of America’s energy industry for nearly 150 years. As a leading investor in the US, we’ve committed more than $55 billion to American energy development since 2008, more than we invest in any other country. We are one of the leading producers and suppliers of oil and natural gas in the US with primary production operations in Alaska, Colorado, New Mexico, Oklahoma, Texas, Wyoming and US Gulf of Mexico. Our Gulf of Mexico portfolio The Gulf of Mexico is a key element of our US strategy. BP and our heritage companies have been exploring the region’s deep water (depths greater than 1,200 feet) for more than a quarter century. Our discoveries – such as Atlantis, Thunder Horse and Mad Dog – include some of the largest fields ever found in the Gulf of Mexico. Recent BP discoveries, such as Kaskida and Tiber, demonstrate that the deepwater Gulf of Mexico will be a vital part of the world’s energy future for many years to come. We are the largest deepwater leaseholder in the Gulf of Mexico, with ownership in more than 650 blocks in water depths of 1,300 feet or greater. In 2012, BP produced in excess of 200,000 net barrels of oil equivalent per day. We expect to invest on average $4 billion each year in the Gulf of Mexico over the next decade, focusing on deepwater exploration and development. We intend to remain an active participant in all facets of the region – as explorer, developer, operator and interest owner. Our partners and contractors We hold our major Gulf of Mexico platforms in partnership with other companies. During the time frame of this report, we operated eight platforms, most as joint ventures. As of November 30, 2012, we operate four production platforms and have interests in three other deepwater Gulf ventures operated by others. Data in this report relate only to platforms operated by BP during the reporting period, unless otherwise noted. Where we are not the operator but own an equity interest in a platform, we work to influence the environmental management of the platform by encouraging environmental practices that follow similar principles to our own. We also expect our contractors and subcontractors to meet and maintain BP’s environmental standards. Following recommendations on contractor oversight from BP’s internal investigation of the Deepwater Horizon accident, we have taken additional steps to ensure that we set clear expectations for our contractors, assess their delivery and intervene when our requirements are not met. Our people We believe success comes from the energy of our people. Developing oil and gas in a challenging deepwater environment requires the dedication of highly skilled people from diverse backgrounds. From geologists and geophysicists, to safety and environmental compliance specialists, to engineers and rig operators, BP directly employs more than 2,300 people in our Gulf of Mexico business (as of December 2012) and supports tens of thousands of additional jobs in the region. Critical to our performance is ensuring that our people embrace the company values set by BP leadership in 2011: safety, respect, excellence, courage and one team. We are striving to make these values part of our day-to-day behavior by embedding them into our processes and management systems. Key events 2010 to 2012 2010 The Deepwater Horizon explosion on April 20 leads to the loss of 11 lives and triggers a major oil spill in the Gulf of Mexico. Launch of unprecedented spill response effort. BP forms the Gulf Coast Restoration Organization in June to manage the company’s long-term response to the spill to ensure that BP fulfils its promises to Gulf Coast communities and continues its work to restore the region’s environment. 2011 BP resumes its deepwater Gulf drilling program with new permits and enhanced standards. BP completes the sale of its interests in the Pompano platform to Stone Energy Corporation on December 28. 2012 BP conducts significant planned maintenance at several Gulf platforms to further enhance long-term integrity. BP begins production from the Galapagos development, its first new major project in the deepwater Gulf since 2010. BP completes the sale on November 30 of non-strategic assets in the deepwater Gulf of Mexico to Plains Exploration and Production Company in a transaction that includes the BP-operated Marlin, Holstein and Horn Mountain platforms. 4 Who we are Verified Environmental Statement 2010-2012 What we do Our Gulf of Mexico operations are part of BP’s upstream business in which we find, extract and produce oil and natural gas. Our key operated, producing platforms We undertake each of these steps in ways consistent with our operating management system, and health, safety, security and environment policies. Exploration Atlantis: Operating in more than 7,000 feet of water, Atlantis’s production capacity is approximately 200,000 barrels of oil and 180 million cubic feet of gas per day. Before making a decision to drill for oil and gas in the deepwater Gulf of Mexico, we examine data from geoscience sources, seismic testing, 3-D projections and other tools to help guide our search for oil and gas reservoirs beneath the seabed. Depending on the data, we may drill an exploration well to confirm the presence of hydrocarbons, followed by an appraisal well, if needed, to determine if the reserves are commercially viable. Our operating management system guides our exploration and development plans as we identify potential risks from our activities and implement strategies to minimize our impacts. Mad Dog: Located in 4,500 feet of water, Mad Dog has the capacity to produce up to 80,000 barrels of oil and 60 million cubic feet of natural gas per day. Before we begin a drilling program in the Gulf of Mexico, for example, we perform regional and site specific surveys of the area to help ensure that we identify and avoid biological communities of concern, archaeological sites or potential hazards that may affect exploration drilling activities. This valuable information is used in the environmental impact analyses (EIAs) conducted prior to drilling operations. These EIAs identify impact-producing factors that include, but are not limited to, sound, air emissions and discharges to water associated with the operation. Following the Deepwater Horizon accident, the government placed a moratorium on new drilling in the deepwater Gulf of Mexico that ended in October 2010. We resumed our drilling program under new permits in 2011 using enhanced drilling and well control standards. Na Kika: Serving multiple fields, Na Kika is located in 6,340 feet of water. It is designed to process up to 130,000 barrels of oil and 550 million cubic feet of natural gas per day. After confirming the presence of commercially viable reserves, we construct wells and facilities that will become the source of future production. In the deepwater Gulf of Mexico, we must build platforms and other structures that can operate in a range of ocean conditions. We reached a key milestone in 2012 with the start-up of the Galapagos development, which added production from three deepwater fields (two operated by Noble Energy) to the nearby Na Kika platform. Production Offshore oil and gas platforms support the personnel and equipment needed to ensure continuous production of oil and gas. Onboard equipment includes utility systems for power generation and for the disposal of gases and liquids which would otherwise pose safety or environmental risks. Reservoir liquids extracted by an offshore platform are initially separated into oil, gas and water. Some of the gas is used on-site as fuel gas to generate power; the remainder of the gas and oil is sent by pipeline to onshore processing facilities. Our offshore Gulf of Mexico oil and gas production experienced a decline over the 2010-2012 period, from a high of 384 mboed (thousand barrels of oil equivalent per day) in 2010 to 261 mboed in 2011 and 214 mboed in 2012 (BP net share of production). This decline reflected in part the impact of divestments and the effects of the Gulf of Mexico drilling moratorium as well as planned maintenance turnaround activity that led to a temporary shutdown of production at some of our platforms. Supporting coral research Hours of underwater video footage from the Pompano platform became a resource for a Pennsylvania State University-led team studying coral growth on oil and gas platforms in the deepwater Gulf of Mexico. Thunder Horse: Located in 6,050 feet of water, Thunder Horse is designed to process up to 250,000 barrels of oil and 200 million cubic feet of natural gas per day. Development Taken by remote operated vehicles between 2008 and 2011, the Pompano footage (provided by BP and Pompano’s new owner Stone Energy after the platform changed ownership) included inspection footage of the platform’s underwater structures as well as footage gathered specifically for the Penn State project. Eight energy companies participated in the project, which was part of a larger Bureau of Ocean Energy Management (BOEM) study of deepwater corals and other hard-bottom communities in the northern Gulf of Mexico. The research team used the video images to document the types of corals found on the participating platforms – including a color morph of the hard coral Lophelia pertusa (L. pertusa) seen in other parts of the world but never in the Gulf of Mexico. The researchers found substantially higher growth rates for L. pertusa on platforms than others have recorded on natural reefs and found the coral to be present at much greater depths than in any known natural reef in the Gulf of Mexico. What we do Verified Environmental Statement 2010-2012 5 Where we work BP produced oil and gas from nearly two dozen fields in the deepwater Gulf of Mexico in 2012. Production from these fields is processed through massive production platforms which extract oil and gas from below the ocean floor and process them in preparation for pipeline transport to onshore facilities. During the period covered by this report, we produced oil and natural gas from eight BPoperated platforms in the Gulf of Mexico: Atlantis, Mad Dog, Na Kika, Thunder Horse, Holstein, Horn Mountain, Marlin and Pompano (see map). A 3-D seismic image gives geoscientists insight into rock layers beneath the seafloor of the Gulf of Mexico. Under the ocean floor Finding and producing oil and gas in deepwater reservoirs create many engineering and technical challenges. Platform divestment Four of these platforms (Holstein, Horn Mountain, Marlin and Pompano) are no longer part of BP’s portfolio after a divestment program. We have focused our Gulf of Mexico production and development activity on our four major BP is integrating engineering, technology and operations to help overcome these challenges and work safely and efficiently in deepwater environments in the Gulf of Mexico and around the world. Divestments and the environment If BP sells an operating platform in the Gulf of Mexico, we aim to put the right processes in place to ensure a smooth transition to the new owner. After we sold our Horn Mountain, Holstein and Marlin platforms to Plains Exploration and Production Company (PXP) in 2012, for example, a transition team that included environmental and other specialists spent five months familiarizing the new owners with operation and maintenance of the facilities. Our environmental advisors introduced PXP to our data collection and reporting procedures, our compliance tools, our environmental management system and the complex regulatory environment. 6 Where we work Verified Environmental Statement 2010-2012 We divested Pompano in December 2011 but continued to operate it until February 2012 on behalf of the new owner, Stone Energy Corporation. Plains Exploration and Production Company (PXP) took over ownership responsibility for Holstein, Horn Mountain and Marlin in November 2012 but BP continued to assist with the operation of those platforms on behalf of PXP until April 2013. In addition to our operated platforms, we also produce oil and gas from three non-operated platforms in the Gulf of Mexico. However, this report covers data from our operated production BP-operated platforms during the reporting period The oil and gas reservoir itself can be as much as 35,000 feet (10,660 meters) below sea level and under kilometers of hard rock, thick salt and tightly-packed sands. High pressures (20,000 pounds per square inch and higher), high temperatures (300 degrees Fahrenheit and higher), water depths of nearly 10,000 ft and swift underwater loop currents add to the challenges. All offshore personnel who had operated these platforms for BP transferred to PXP, carrying with them years of hands-on operational expertise. platforms (Atlantis, Thunder Horse, Na Kika and Mad Dog) and on unlocking the exploration potential of our leading leasehold position. Map reflects BP-operated platforms prior to Pompano, Holstein, Horn Mountain and Marlin divestments. How we work Rigorous management of risk helps to protect the people at the front line, the places in which we operate and the value we create. We expect our people to know our environmental policies, to comply with regulations and follow best practices and target continual improvement. We also expect everyone on our sites to know how their job impacts the environment and what operational controls are in place to stop or minimize the impact. Above: Workers on the deck of a drilling rig in the Gulf of Mexico. Our work in the Gulf of Mexico is guided by BP’s internal operating management system as well as by external oversight. OMS and the environment Our operating management system The OMS section on risk requires each major operating site to have an environmental management system that sets out how we identify and assess potential risks and environmental impacts in order to put in place mitigation measures and operational controls and procedures. We aim to manage environmental impacts throughout the lifecycle of our operations. BP’s operating management system (OMS) is a framework across all of BP’s operations that is designed to drive safe, reliable and compliant operations, including environmentally sound operations. It provides the basis for managing our businesses in a systematic way by integrating BP requirements such as health, safety, security, the environment, social responsibility, operational reliability, maintenance, contractor relations and organizational learning. The OMS framework addresses eight interdependent ‘elements of operating’ under the areas of people, plant, process and performance. We undertake an annual assessment of our operations to check our performance against requirements set out in OMS. Then we put in place plans to close gaps and identify steps to help reduce the level of risk at our sites. BP updates the group OMS requirements as needed to reflect our priorities and experiences and the opportunities for further improvement identified by the annual OMS reviews. For example, we have been updating our group procedures around oil spill preparedness and response, crisis and continuity planning and learning from incidents. We assess our environmental performance in the Gulf of Mexico and review progress annually with our Gulf of Mexico leadership in conformance with OMS requirements. We set improvement targets, such as leak reduction or pollution prevention, and develop plans to meet these targets. Enhanced scrutiny BP introduced a new safety and operational risk (S&OR) organization in 2011, whose head reports directly to the group chief executive. S&OR sets our company-wide requirements for safety and operational risk management. It works alongside our businesses to strengthen and scrutinize their efforts towards conformance with our operating management system – and intervene if needed. Our operating management system Privile Oper ge t ate o formance Per Op tim izatio n Pr oc edu res P la n t k Ris The code now includes a new section, ‘Living our Code’, to help people make decisions when faced with dilemmas where there are no clear rules to follow. Process The code’s sections cover health, safety and the environment; our people, our partners and suppliers, governments and communities; and protecting BP’s assets. n tio iza Organ The BP code of conduct sets out the basic rules our people must follow and explains how our values should guide all of our decisions. The code helps each employee do the right thing when faced with difficult decisions. People Our code of conduct Leade rsh ip s sult Re ets Ass How we work Verified Environmental Statement 2010-2012 7 ISO 14001 certification In addition to our own internal audits, the way in which we manage the environment is externally certified to an international standard. In the Gulf of Mexico, our production sites and support operations are certified to the ISO 14001 standard ISO 14001 requires BP to establish, implement and maintain environmental objectives and targets. Certification is subject to regular internal and external audit and requires recertification every three years. An independent certification body assesses our conformance with the ISO 14001 standard. We successfully maintained our ISO 14001 certification on all of our Gulf of Mexico production sites and support operations over the period of this report, with 2012-13 marking our 13th year of such certification. Regulatory compliance The primary regulators for our offshore Gulf of Mexico activities include the US Coast Guard, the Environmental Protection Agency (EPA), the Bureau of Ocean Energy Management (BOEM), the Bureau of Safety and Environmental Enforcement (BSEE) and the National Marine Fisheries Service. Environmental permits vary depending on the project and the nature of the activity but are aimed generally at environmental protection and using best available technology. Our operations are subject to inspection by regulators; we also conduct our own audits to ensure we consistently meet our environmental compliance obligations. Reducing environmental risk by committing to safety enhancements We work in a challenging business where risks to safety, operational integrity and environmental impact are closely linked. When we enhance the safety and integrity of our operations, we also enhance their environmental reliability. We took significant steps to enhance safety and operational integrity in our Gulf of Mexico operations over the reporting period. Many of these emerged as recommendations from BP’s internal investigation of the 2010 spill (the Bly Report). Strengthening our drilling standards, training processes and maintenance programs as outlined below helps to reduce the risk of an accident that could have an environmental impact. New drilling standards BP implemented enhanced drilling standards for operations in the Gulf of Mexico in July 2011. These standards on blowout preventers, cementing and oil spill response capabilities exceeded existing federal regulatory requirements and strengthened oversight of contractors. State-of-the-art training We are reinforcing the capabilities of our deepwater rig teams with the aim of helping to reduce the risk of safety incidents and environmental impacts. In 2012, BP established the Global Wells Institute to provide core and specialty wells training programs under one roof. This initiative included the construction of a state-of-the-art well control and drilling simulator in Houston to support practical learning and testing programs for deepwater rig teams. Teams of BP staff and contractors from our Gulf of Mexico drilling operations were the first to use the simulator, with approximately 30 individuals completing a new applied deepwater well control training program by the end of 2012. The applied program uses the simulator’s advanced software to create customized simulations that prepare teams for their next drilling assignment. Expanded maintenance Over the reporting period, our Gulf operations carried out a large planned maintenance program of 13 turnarounds as part of our drive to maintain the safety and environmental integrity of our assets. Turnarounds are standard practice in the oil and gas industry and are planned, periodic shutdowns (either total or partial) of a facility in order to perform maintenance and repairs, and to inspect, test and replace materials and equipment. We work to ensure that our systems stay current and compliant with changing regulations, such as the new Safety and Environmental Management Systems rule introduced by BSEE, effective November 2011. This Safety and Environmental Management Systems rule requires companies to maintain a comprehensive management program for identifying, addressing and managing operational safety and environmental hazards and impacts, with the goal of promoting both human safety and environmental protection. Contractor oversight Our management system requires contractor competence. Our contractors must demonstrate that their personnel are knowledgeable and experienced in the work practices necessary to perform their job in a safe and environmentally sound manner. 8 How we work Verified Environmental Statement 2010-2012 Well simulator training in Houston provides hands-on learning for deepwater drilling teams. Environmental performance BP is working to manage our environmental impacts in the Gulf of Mexico. We provide information on our key environmental impact areas, summarizing the issue, our management approach and our performance. Our goals We identify potential environmental impacts and seek to avoid or minimize them. We establish annual objectives to improve environmental performance. We put plans in place to reduce environmental risks associated with our projects and operations. In this section Tracking environmental impacts. Improving our ability to respond to spills. Working with others to share lessons learned. For more information visit online at: bp.com/environment bp.com/sustainability Thunder Horse ACE control room, Houston BP’s advanced collaborative environment (ACE) control rooms enable onshore and offshore teams to participate in platform operations in identical control rooms on the platform and in BP’s office in Houston. Each ACE facilitates real-time monitoring of offshore activities, including environmental data, and supports video conferencing between offshore crews and onshore specialists. Environmental performance Verified Environmental Statement 2010-2012 9 Identifying our impacts We identify and systematically manage the impacts of our activities to minimize our environmental footprint from planning to dismantling. Data note Data in the environmental performance section are gross for BP’s major operating sites in the offshore Gulf of Mexico, unless otherwise stated. Greenhouse gas emissions data are net and presented on a BP equity share basis from BP-operated and non-operated entities in which BP has a share. The data cover the calendar years 2010 to 2012 and are reported as of February 2013. The data do not cover environmental impacts related to the Deepwater Horizon accident and response. Divestments: Figures in this report include data from the Pompano platform until February 2012 and from the Holstein, Horn Mountain and Marlin platforms until the end of 2012. However, greenhouse gas figures, reported on a net equity share basis, do not include Pompano for 2012 or Horn Mountain, Marlin and Holstein for December 2012 as BP no longer had an equity share in those platforms during those periods. Seeking solutions To ensure that we properly address the potential safety and environmental impacts of our operations in the Gulf of Mexico, we analyse key data to see where opportunities for improvement may exist. Oil and gas production projects can have implications for air, water and wildlife. BP’s environmental requirements for all new projects are designed to help ensure that reasonably forseeable potential issues such as waste disposal, emissions reduction and discharges into water are assessed before a project gets underway and carefully monitored until the project’s end. Our Gulf of Mexico teams work to improve environmental performance at every phase of our operations by investigating new technologies and processes, seeking ways to improve efficiency, enhancing management of the environment and expanding the capabilities of our workforce. Important environmental capability development efforts in 2011 and 2012, for example, included more than 1,000 hours of enhanced emergency response training for our environment and regulatory teams. The intensive training, which included simulations of large-scale scenarios, such as an oil spill, reinforced the preparedness of these personnel to fill roles within the environmental unit of an incident management team (IMT). The IMT directs emergency response during incidents such as an oil spill. When the IMT is activated, the environmental unit liaises with regulators and coordinates the IMT’s approach to potential environmental impacts in areas such as resources at risk, wildlife, monitoring, shoreline cleanup and assessment, waste management, alternate response technology and scientific support. Our environmental impacts This report addresses four key areas of environmental impact resulting from our offshore Gulf of Mexico operations: atmospheric emissions, permitted water discharges, spills and waste. Data from these areas are listed in the figures table on page 17. Some of the data are also presented in chart format within the body of this report. The scope of potential impacts from our production platforms varies depending on factors such as the size and type of the platform, production capacity and the nature of the oil and gas reservoir itself. This includes analysis of our process safety performance. Process safety is a disciplined framework for managing the integrity of hazardous operating systems by applying good design principles, engineering and operating practices. It deals with the prevention and control of incidents that have the potential to release hazardous materials or energy that could result in injury, property damage, lost production and environmental impact. Our safety and operational risk team holds regular process safety performance reviews with our Gulf of Mexico leadership to assess loss of primary containment (LOPC) incidents and other data. LOPC events are unplanned or uncontrolled releases of materials such as hydrocarbons or chemicals, both those that reach water and those that do not. These reviews help us to improve training, identify possible alternative materials and consider the appropriate revision of processes. We have reinforced our safety reviews, as well, through the development of enhanced inspection techniques and a systematic surveillance program. 10 Identifying our impacts Verified Environmental Statement 2010-2012 BP’s Houston Monitoring Center is a key element supporting our Gulf of Mexico operations. This state-of-the-art facility opened in June 2011 and provides round-the-clock communications capability between BP’s rigs in the Gulf and experts onshore. With real-time information feeds, live video and constant communication with colleagues on the rigs, teams at the facility monitor data from drilling operations 24 hours a day. The center enhances our ability to further reduce environmental risks. Atmospheric emissions BP seeks to prevent and reduce air emissions in order to reduce potential harm to human health and the environment. Atmospheric emissions generated by our Gulf operations primarily result from the combustion of fossil fuels to produce electricity. Natural gas generated by our production (known as fuel gas) supplies most of the power on our platforms. Smaller amounts of diesel are used for platform emergency equipment, by support vessels and by mobile offshore drilling units. Emissions sources include: combustion turbines and diesel engines driving electrical generators, auxiliary diesel engines, storage tanks, fugitive emissions from valves and pipe fittings, and flaring and venting. In offshore operations, flaring is the controlled burning of gas found in oil and gas reservoirs. Flaring is an important part of a platform or rig’s safety system. It is sometimes necessary as a safety release during emergencies or at certain points in regular operations as well as during maintenance or initial commissioning of a well. New rig engines reduce NOx output Mobile offshore drilling units (MODUs), whether drill ships or semi-submersibles, are powered by large marine diesel engines. These engines – like other boat, car and truck engines – are a source of nitrogen oxide (NOx) gases that form when fuel is burned at high temperatures. NOx can react with other substances to contribute to air pollution, including ozone. The new MODUs being built today use lower-emitting diesel engines to meet international marine environmental conventions. These engines have better control of the combustion process than earlier models and have the potential to create up to 40% fewer NOx emissions for the same unit of work. In addition to this potential for lower emissions, these newer MODUs also have advanced well control systems and a larger capacity that enables them to drill deeper wells in deeper water. We began drilling our first wells with a loweremitting diesel MODU in 2012 (Seadrill’s West Capricorn rig, above) and are continuing to work with our drilling contractors to use more of these cleaner, newer generation rigs in the deepwater Gulf of Mexico in 2013. Data note Identifying key emissions We are committed to reducing the generation of greenhouse gases (GHGs) believed to contribute to global warming, including carbon dioxide (CO2) and methane. We report our emissions of both CO2 and methane as ‘CO2 equivalent’ (CO2e). We also monitor and report non-greenhouse gas emissions, such as nitrogen oxides (NOx), sulfur oxides (SOx) and ozone-depleting substances. BP determines its emissions by measuring amounts and key characteristics of the fuel we burn and the gas we flare or vent. We also apply emission factors published by government agencies or equipment manufacturers. Natural gas creates fewer emissions than diesel. This is significant for our platforms where we primarily use fuel gas from Support vessels also use diesel fuel. As of June 2012, we have been facilitating the use of ultra-low sulfur diesel (ULSD) for most of these vessels. ULSD has the potential to create a significant decrease in SOx emissions. We undertook air quality modelling of Thunder Horse in 2012, which demonstrated there was no significant impact on ambient air quality as a result of our operations. Tracking our performance Flaring increased from 32,498 tonnes in 2010 to 69,865 tonnes in 2012. This was in part because of flaring related to process shutdown and start-up in 2012, including the start-up of new production at the Galapagos development. We monitored this flaring closely in accordance with consents granted by the regulator. GHG emissions dropped in 2011, partly because of limited drilling and declining production. As drilling increased in 2012, GHGs began to rise again but remained below 2010 levels. However, normalized GHG emissions (GHGs per 1,000 barrels of oil equivalent of production) reached their highest point in 2012. This reflects in part the ramp-up in drilling during a period of declining production. NOx and SOx emissions increased, reflecting in part an upturn in diesel use because of expanded turnaround operations for maintenance. Improved performance from platform air conditioning systems contributed in part to a 43% decrease in ozone-depleting substances. Greenhouse gases emissions (CO2e tonnes) Flaring (tonnes) 80000 1200000 70000 1000000 60000 800000 50000 600000 40000 30000 Data exclude emissions associated with the Deepwater Horizon accident and response. Flaring data is gross for BP’s major operating sites in the Gulf of Mexico. GHG data are net, direct GHG emissions presented on a BP equity share basis from both BP-operated and nonoperated entities in which BP has a share. onsite production to run equipment. Some platform turbines are dual fuel, switching to diesel when fuel gas is unavailable, such as when production is shut down. 400000 20000 200000 10000 2010 2011 2012 2010 2011 2012 Atmospheric emissions Verified Environmental Statement 2010-2012 11 Permitted water discharges BP aims to minimize the environmental impact of discharges to water and takes a proactive approach to mitigating impacts. We monitor and treat wastewater discharges from our offshore Gulf of Mexico operations in accordance with regulatory requirements. The EPA’s National Pollutant Discharge Elimination System (NPDES) permitting system sets monitoring requirements, limits and prohibitions on discharges to protect the marine environment. The biggest source of wastewater from our offshore operations is produced water. This is water from underground formations that is brought to the surface when oil and gas are extracted. Overboard water from fire fighting practices becomes part of permitted water discharges. Managing chemical use Management of production treatment chemicals is a critical activity for our Gulf operations. When choosing the optimal chemicals for our operational processes, we rigorously assess each chemical’s functionality as well as its safety and environmental performance. In 2012, for example, Thunder Horse changed the type of demulsifying chemical used in its separator unit (the first stop in a multi-stage process to split apart oil, gas and water extracted from subsea wells). The switch to the new demulsifier both improved water recovery and reduced the amount of chemicals needed for the task. Mad Dog also took steps to improve the quality of its water discharges in 2012 by changing the clarifying chemical used by its float cell unit (a later stage in the separation process), reducing oil and grease concentrations by half. Discharge of production chemicals (tonnes) 3500 3000 2500 Because produced water may contain hydrocarbons and chemicals, it must be treated prior to release to minimize effects on the environment. Our produced water treatment systems remove oil, gas and solids from the water using equipment such as twoand three-phase separators, hydrocyclones, de-sanders, induced gas floatation systems and treatment chemical injection systems. Other types of wastewater that we treat and monitor include ballast water, process wastewater such as boiler or cooling water, chemically treated seawater used for pressure testing and corrosion prevention, sanitary wastewater and deck drainage of rainwater. Increasing our understanding We work to increase our understanding of the impact of wastewater discharges and treatment Produced water discharged (tonnes) processes in our offshore operations through modelling and ongoing monitoring programs. This includes studying and upgrading the efficiency of wastewater treatment plants on our platforms. In 2012, we concluded a complete inspection of produced water equipment at our Thunder Horse facility. Thunder Horse plans to test the effectiveness of online oil and grease monitoring equipment that potentially could lead to more effective, real-time monitoring of wastewater quality through faster assessment of oil and grease concentrations. Tracking our performance Our Gulf of Mexico production facilities discharged 3,920,141 tonnes of produced water in 2012, containing approximately 67 tonnes of oil, compared to 5,162,156 tonnes of produced water in 2010, containing approximately 102 tonnes of oil. This 24% decrease in produced water discharge reflects in part the Pompano divestment as well as turnarounds that shut in production. The amount of production chemicals discharged as part of our wastewater decreased from 2,466 tonnes in 2010 to 2,151 tonnes in 2012. The peak for the period was 2,962 tonnes in 2011, driven in part by additional produced water treatment. Oil in produced water discharged (tonnes) 6000000 120 5000000 100 4000000 80 3000000 60 2000000 40 1000000 20 2000 1500 1000 500 2010 12 2011 2012 Permitted water discharges Verified Environmental Statement 2010-2012 2010 2011 2012 2010 2011 2012 Spills BP works to prevent, mitigate and ensure our preparedness to respond to accidents and spills. Loss of primary containment (LOPC) incidents are any unplanned or uncontrolled release of hydrocarbons, chemicals or other material (excluding non-hazardous releases such as water) from a tank, vessel, pipe or other equipment used for containment or transfer. If LOPC material at our offshore operations reaches Gulf waters, it is classified as a spill. We report and investigate such releases, take corrective action and share lessons learned to further reduce the likelihood of recurrence. Understanding and mitigating the risks Identifying and assessing potential spill risks and impacts – such as harm to marine life – help us to continue to ensure that we have appropriate spill response and crisis management plans. These plans are backed up by the tools and people required to mount an effective response to an incident and mitigate potential impacts. Capping and containment capabilities, including the ability to cap a well and collect oil at surface, are important to oil spill response. BP’s global deepwater well cap and tooling package, developed following the Deepwater Horizon accident in 2010, is stored in Houston and maintained in a constant state of operational readiness. In ideal circumstances, it can be airlifted to a target location within a few days. The well cap is a 100-ton stack of valves and control system that can be lowered onto a well, where appropriate, to halt the flow in up to 10,000 feet of water. BP maintains this cap (above) for global responses and draws on the capping resources and other deepwater subsea well resources of the Marine Well Containment Company for response in the Gulf of Mexico. The Gulf of Mexico spill in 2010 was a sobering event, demanding a response at an order of magnitude never required before. Learn more at bp.com/gulfofmexico. We aim to minimize risk by applying good design principles and engineering practices and focusing on prevention through training and awareness initiatives, review of process safety systems, and regular inspection and maintenance programs. This includes the turnaround activities that took place on a number of our Gulf platforms over the reporting period with the objective of ensuring the integrity of our facilities and equipment. Investigating root causes We record and investigate spills that do occur to determine the root cause – be it worker error, equipment failure, process deficiency or other cause. We learned a great deal from the 2010 spill and made advances in response technology and systems. We continue to focus on incorporating what we have learned into further strengthening technical requirements for BP operations that drill in deep water and are sharing our knowledge with the industry and regulators. Among other initiatives, BP is supporting the Marine Well Containment Company with containment Number of hydrocarbon spills knowledge and equipment and is a permanent member. Enhanced response requirements New BP deepwater drilling operations must have access to capping equipment, must pre-plan their relief well and must be ready to demonstrate to our safety and operational risk function, as well as to the regulator, that oil spill contingency plans account for all foreseeable risks. Plans must include measures to mitigate reasonably foreseeable environmental and economic consequences, including worst case events. In July 2012, BP issued enhanced group requirements for oil spill preparedness and response planning and for crisis management that we are integrating into our Gulf operations. Tracking our performance We rigorously track all spills to help understand common issues or trends that may be occurring across the region. The figures reported here reflect liquid hydrocarbon spills of any size (excluding the Deepwater Horizon spill) and chemical spills with volumes that meet the reportable quantities set by regulators. The figures reflect spills for which BP is listed as the responsible party. The number and volume of chemical spills continued to be low, with one spill measuring six gallons in 2010 and no spills in 2011 and 2012. Hydrocarbon releases, which formed the majority of BP spills over the reporting period, declined in number and volume between 2010 and 2012. There were 46 spills with a total volume of 582 gallons of hydrocarbon-containing liquids in 2010 (excluding the Deepwater Horizon spill) compared to 16 spills with a total volume of 17 gallons in 2012. Our continued emphasis on process safety was a significant contributor to this decline (see ‘Seeking solutions’ on page 10). Volume of hydrocarbon spills (gallons) 700 50 600 40 500 30 400 20 Data note Data on the number and volume of hydrocarbon spills exclude the oil spilled in the 2010 Deepwater Horizon accident. 300 10 200 0 100 2010 2011 2012 2010 2011 2012 Spills Verified Environmental Statement 2010-2012 13 Waste We are committed to reducing waste from our offshore operations and managing the waste we do produce so that it will not pose harmful risk to the workforce, communities or the environment. We develop plans for handling waste from our facilities in compliance with federal and state laws and our operating management system. Solid waste must be transported back to land for disposal. Minimizing waste production through reducing, reusing and recycling efforts is essential. Waste remaining is disposed at licensed landfills with proper engineering and site management processes for the waste they receive. Some materials designated for onshore disposal, such as some drilling wastes, go to a deep cavern injection site rather than a landfill. A third-party auditing program ensures that treatment and disposal facilities appropriately manage waste on our behalf. Managing non-hazardous waste When products such as used paint and paint thinner remain after maintenance activities, we dispose of them onshore through our hazardous waste management program, which follows strict EPA protocols. Above: A painter works on Thunder Horse. The majority of waste generated by our offshore facilities qualifies as non-hazardous, which is either recycled/recovered for other uses or disposed. Our non-hazardous waste includes scrap metal; maintenance wastes such as used oil, oily rags and filters (where the oil meets nonhazardous requirements); and municipal trash generated by personnel living on the platforms. Our recycling efforts in 2012 included a new training program on the Marlin platform to improve understanding of recycling opportunities. All of our platforms and two of our contracted MODUs participate on behalf of BP in the voluntary Recycle the Gulf program. The program redirects municipal trash (such as cardboard, plastic, aluminum and tin) from the landfill. Converting waste to useful energy Some of the waste from our offshore activities gains a new purpose through waste-to-energy processes provided by companies that convert waste into useful energy. Energy generated in this way provides an important contribution towards reducing the amount of waste sent to landfills. For example, one initiative sees used oils from our platform activities – such as motor, hydraulic and cooking oils – sent to a facility that blends them into a high-temperature combustion fuel for steam-generated electricity that goes into the electrical grid. Solids, such as absorbents and filters that have been in contact with processed oils (e.g., hydraulic oils), are also processed into a high-temperature combustion fuel for steamgenerated electricity. Some of our used liquids classified as hazardous waste go to another fuels-blending facility that turns them into a fuel used in cement kilns. Waste (tonnes) Hazardous waste disposed Non-hazardous waste recovered/recycled offsite Non-hazardous waste disposed offsite 9000 8000 7000 Waste Verified Environmental Statement 2010-2012 Reuse efforts included work with a local port commission to redirect excess dry cement from our operations to a coastal restoration program for use in erosion control. We also sent used liquids, such as ethylene glycol and oily water, to a facility that recycles the liquid by reclaiming the oil and ethylene glycol for resale. In 2012, all of our platforms implemented an enhanced hazardous waste segregation process for absorbent materials, such as absorbents and oil rags, to minimize the potential comingling of waste types and help to ensure safe handling. Improving our segregation process has the potential to expand recycling efforts at our platforms. Managing hazardous waste Examples of hazardous waste from our offshore operations include certain painting wastes, drilling chemicals and production chemical residue. We send most hazardous waste to shore for proper disposal at licensed sites. However, some hazardous wastes – such as batteries and fluorescent lightbulbs – meet the EPA definition for ‘universal wastes’ that can be recycled at licensed facilities. Some liquids are disposed through wasteto-energy programs (see box at left). Tracking our performance The data reported here include waste from drilling and other activities performed by third parties providing services to BP. Some waste classed as ‘exploration and production exempt’ by the EPA (such as produced sand) is captured in the non-hazardous waste categories while some (such as drilling mud) is captured in the drilling wastes data in the figures section at the end of this report. The small component of our waste categorized as hazardous waste disposed increased from less than 1% in 2010 to 2% of our overall waste in 2012. We also experienced an increase in non-hazardous waste disposed. These increases are attributable in part to increased drilling by the end of the period and increased maintenance. 6000 5000 4000 We saw a decline in the rate of nonhazardous waste recovered/recycled over the reporting period. This relates in part to a change in some waste streams in 2012, which led to disposal through offsite deep well injection rather than recycling. 3000 2000 1000 2010 14 Over 2010-2012, BP’s contribution to Recycle the Gulf was more than 400 tons. We also work with waste contractors to recycle materials such as plastic buckets and scrap metal. 2011 2012 Way forward The Gulf of Mexico is one of the world’s most significant energyproducing basins. It is a key element of BP’s global portfolio and we are privileged to work here. 13 years of ISO 14001 certification. That privilege comes with great responsibility to ensure that we develop the Gulf’s energy safely and with care for the environment. As outlined in this report, we are committed to pursuing continuous improvement of our environmental performance in accordance with our operating management system and the ISO 14001 standard. We are undergoing preparations for several audits during 2013 with focus on compliance and environment. We will use results from these audits and other processes to help ensure that we have the appropriate systems and tools in place for effective management of our environmental footprint in the Gulf of Mexico as we move forward. We are also committed to continuing to report our environmental performance publicly through reports such as this externally verified environmental statement. A contractor and a BP operator at work in an offshore production module. Cindi Skelton Vice President, Safety and Operational Risk, BP Gulf of Mexico _______ Our enduring objective is to sustain an environment of safe, compliant and reliable operations in the Gulf of Mexico. As we pursue this objective, we are committed to continuously improving the leadership, capability and capacity of our organization. Way forward Verified Environmental Statement 2010-2012 15 Verification statement DET NORSKE VERITAS CERTIFICATION, INC. 1400 Ravello Drive Katy, TX 77449 USA Phone: 281 396.1000 Fax: 281 396.1903 August 30, 2013 BP Gulf of Mexico 200 Westlake Park Boulevard Houston, Texas 77079 Det Norske Veritas has independently reviewed the BP Gulf of Mexico Verified Environmental Statement 2010-2012 and conclude it represents a true and fair reflection of the environmental programs and performance from 2010 through 2012. We have found no statements in this report which we have been unable to substantiate and verify through observations, visit and review of the appropriate systems. Ismael Belmarez Accreditation Manager Houston, Aug 30, 2013 16 Verification statement Verified Environmental Statement 2010-2012 BP in the Gulf of Mexico in figures Data on our environmental performance from 2010 to 2012. aaa Environment Number of hydrocarbon spills b Volume of hydrocarbon spills b (gallons) Number of chemical spills d Volume of chemical spills d (gallons) Greenhouse gas emissions (CO2e, tonnes) e Greenhouse gases per 1,000 boe (CO2e, tonnes) h Sulfur oxides (tonnes) Nitrogen oxides (tonnes) Ozone-depleting substances (kilograms) i Flaring (tonnes) j Produced water discharged (tonnes) Oil in produced water discharged (tonnes) Discharge of production chemicals (tonnes) Hazardous waste disposed (tonnes) Non-hazardous waste disposed offsite (tonnes) Non-hazardous waste recovered/recycled offsite (tonnes) Drill cuttings discharged to water (tonnes) k Drill cuttings disposed to land (tonnes) k 2010 46 c 582 c 1 6 1,106,982 f 8 84 6,443 1,564 32,498 5,162,156 102 2,466 39 6,402 1,298 33,804 6,481 2011 20 9 0 0 870,522 9 66 5,265 1,177 43,220 4,552,415 74 2,962 41 6,788 1,578 0 0 2012 16 17 0 0 1,065,026 g 12 144 8,803 884 69,865 3,920,141 67 2,151 166 6,564 1,022 4,902 13,504 2010 384 5 2011 261 0 2012 214 11 Performance Production (BP net, mboed) l Number of wells drilled m Notes to figures a Data are gross and are limited to facilities at BP’s major offshore operating sites in the Gulf of Mexico, unless otherwise indicated. Data are reported as of February 2013. All 2010 figures exclude data related to the Deepwater Horizon accident and response activities. Greenhouse gas emissions and flaring related to the Deepwater Horizon accident are discussed in note f below. Figures in this report include data from the Pompano platform until February 2012 and from the Holstein, Horn Mountain and Marlin platforms until the end of 2012, unless otherwise stated. emissions presented on a BP equity share basis from both BP-operated and non-operated entities in which BP has a share. The data include volumes from platforms, emergency equipment aboard platforms, MODUs and support vessels. This data is more comprehensive than emissions reported through the EPA which requires us to report GHG emissions from platforms only. This data also differs from EPA-reported levels because of differences in flaring calculation methods (see note j on flaring). f b Hydrocarbon spills are defined as any liquid hydrocarbon release that reached the waters of the Gulf of Mexico. Figures reflect spills for which BP is listed as the responsible party. The number and volume of spills reported here may differ from those reported through agencies with different spill criteria. c This data does not include the oil spilled in the Deepwater Horizon accident. Estimated greenhouse gas emissions and flaring associated with the Deepwater Horizon accident and response are not included in the figures presented in this report. However, BP has estimated the gross CO2 equivalent emissions from response activities to be approximately 481,000 tonnes. We have estimated the gas flared during the response to be approximately 56,000 tonnes. d Chemical spills are defined as those that reach reportable quantities required by regulators. Figures reflect spills for which BP is listed as the responsible party. g Greenhouse gas totals, reported on a net equity share basis, do not include Pompano for 2012 or Horn Mountain, Marlin and Holstein for December 2012 as BP no longer had an equity share in those platforms during those periods. e Greenhouse gas emissions data are net, direct GHG h Greenhouse gases per 1,000 boe figures are calculated based on net, direct GHG emissions and BP net share of production. i Ozone-depleting substances reported here include hydrofluorocarbons and hydrochlorofluorocarbons. j Flaring data in this report differ from levels reported for EPA compliance because of different calculation methods. The EPA requires reporting based on projections from previous years while the figures in this report are based on actual data from the reporting year as per BP group conformance requirements. k Drilling wastes data are recorded in the year of completion of the well, not the year of drilling. For example, if a well is drilled in 2011 but not completed until 2012, the drill cuttings discharged to water or disposed to land for that well will be recorded in 2012. l Production figures are BP net share of production of oil, natural gas and natural gas liquids and include volumes from both BPoperated and non-operated entities in which BP has share. The production totals do not include data from Pompano for 2012 and from Holstein, Horn Mountain and Marlin in December 2012 as BP no longer had an equity share in those platforms during those periods. m A well is reported as drilled once it has reached total depth. BP in the Gulf of Mexico in figures Verified Environmental Statement 2010-2012 17 Acronyms and glossary 3-D Three dimensional. Barrel 42 US gallons. boe Barrel of oil equivalent – a unit of energy based on the approximate energy released by burning one barrel of crude oil. BOEM Bureau of Ocean Energy Management. BSEE Bureau of Safety and Environmental Enforcement. CO2 Carbon dioxide. CO2e Carbon dioxide equivalent – greenhouse gas emissions, including methane emissions, are converted to the quantity of CO2 that would create an equivalent warming effect. Code of conduct BP’s commitment to integrity, summarizing our expectations and standards for employee behavior. EIA Environmental impact analysis. EPA US Environmental Protection Agency. Flaring and venting Ignited (flaring) and unignited (venting) release of natural gas into the atmosphere. Flaring and/or venting of gas can be required in oil and gas operations to ensure the facility operates safely. Fossil fuels Fuels, such as oil, natural gas and coal, which result from the decay of dead plants and animals over millions of years. GCRO BP’s Gulf Coast Restoration Organization. GHG Greenhouse gas emissions – gases which are believed to contribute to climate change. This occurs through natural processes such as decomposition, but also through human activities such as transport using internal combustion engines. In BP, GHG refers to the sum of our operations’ carbon dioxide and methane emissions, expressed as CO2 equivalent. Gulf Gulf of Mexico. Hydrocarbons Consisting only of carbon and hydrogen, hydrocarbons are the main components of fossil fuels such as petroleum, coal and natural gas. IMT Incident management team. ISO 14001 A standard from the International Organization for Standardization which sets out the requirements for an environmental management system. ISO 14001 certification requires an audit by a competent external party. LOPC Loss of primary containment – any unplanned or uncontrolled release of material, excluding non-hazardous releases (such as water), from a tank, vessel, pipe or other equipment used for containment or transfer. mboed Thousand barrels of oil equivalent per day. MODU Mobile offshore drilling unit. NOx Nitrogen oxides. NPDES National Pollutant Discharge Elimination System. OMS Operating management system – BP’s framework of processes, standards and practices to help deliver consistent performance, progressing to excellence, in operations and safety. Operational integrity Managing plant and equipment throughout their life cycle to prevent injury to people or damage to the environment through loss of containment, structural failure or unintended release of stored energy. Process safety Prevention of leaks, spills, equipment malfunctions, over-pressures, excessive temperatures, corrosion, metal fatigue and other conditions. Produced water Mainly salty water trapped in the reservoir rock and brought up along with oil or gas during production. PXP Plains Exploration and Production Company. S&OR BP’s safety and operational risk organization. SOx Sulfur oxides. Tonne A unit of measurement equalling 1,000 kilograms or 2,204.6 pounds. Turnaround A planned, periodic shutdown (either total or partial) of a facility in order to perform maintenance and repairs, and to inspect, test and replace materials and equipment. ULSD Ultra-low sulfur diesel. Upstream The exploration, production and transport of oil before refining. Verified Environmental Statement 2010-2012 Contact us Your feedback is important to us. If you have any comments or queries about this report, please write or phone us and we will be happy to assist. Telephone: General Inquiries 281 366 3465 Media 281 366 8346 Mail: BP 501 Westlake Park Boulevard Houston, Texas 77079 Att: Government and Public Affairs Web: bp.com Cautionary statement The BP in the Gulf of Mexico Verified Environmental Statement 2010-2012 contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of BP in the Gulf of Mexico and certain plans and objectives of BP with respect to these items. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements depending on a variety of factors including future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory action; exchange rate fluctuations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this document and at bp.com. No part of this Verified Environmental Statement or bp.com/ sustainability constitutes, or shall be taken to constitute, an invitation or inducement to invest in BP p.l.c. or any other entity and must not be relied upon in any way in connection with any investment decisions. Verified Environmental Statement 2010-2012 © BP p.l.c. 2013