Energy, Environment, and Social Development: What Does Sustainability Mean for Oil and Gas?

Abstract

President's column After my October column, I heard from some members concerned about my plan to promote sustainability. They equated the term with a “green” agenda, and with stopping the use of fossil fuels. While oil and gas are finite, not “renewable” resources, they are still crucially important to building a more sustainable world and will play a major role for a very long time, not only for global economic growth but also for global social development and human lifestyle enhancement. In 2015, the United Nations (UN) adopted an ambitious agenda for transforming our world by 2030. They established 17 sustainable development goals (SDGs) that address some of the world’s most pressing challenges, such as poverty, hunger, health, education, clean water, and affordable energy. According to the UN, these 17 SDGs are integrated and indivisible, and they balance the three dimensions of sustainable development: the economic, social, and environmental. My focus during my term as SPE president is to highlight how the oil and gas industry contributes to all three of these main concepts. I believe this can be achieved by mapping some of these SDGs on what we do daily and explain how our industry is contributing broadly to the economy, society, and the environment. The impact of oil and gas on the global economy is evident. According to BP’s World Energy Outlook for 2018, oil and gas supply around 53% of the world’s energy needs, especially in the transportation, chemicals, and manufacturing sectors. This percentage is not expected to change much through 2040, with the total volume of oil and gas demand expected to increase. Exporting countries and those supplying their own energy needs benefit from our industry through gross domestic product (GDP) and economic growth. But even importing countries see significant benefit from the oil and gas powering their economies. Let us just imagine for a second what would happen to Japan, South Korea, China, and even Western Europe without oil and gas. The majority of the energy needs for these sectors currently, and for the long term, are met largely by oil and gas, without which their economies would be negatively affected and their lifestyle would diminish. These countries rely on the commodities we produce to grow their GDP, develop their societies, and improve the lifestyle of their citizens. With the abundance, mobility, and affordability of oil and gas, the world economy not only thrives but also fully supports continued growth, bringing more prosperity. The social challenges facing the world, which can be seen in many of the UN SDGs, reflect issues our industry has been addressing since we first discovered resources in far-flung parts of the globe. When our industry discovers and develops hydrocarbon resources, we help countries to develop socially by creating local jobs, enhancing the local content, and building infrastructure such as roads, schools, hospitals, water wells, housing, and communities.