In 2023, Brazil produced over 4 million barrels of oil equivalent per day (Mboe/d) offshore, making it a leading offshore producer globally. The aim is to produce oil with the smallest environmental footprint in this vibrant scenario.
The circular economy, a model that minimizes waste and maximizes resource efficiency, is drawing sector attention. Unlike the linear “extract-produce-discard” model, it seeks to close loops by promoting reuse, recycling, and material recovery.
IBAMA, the environmental agency overseeing Brazilian offshore E&P, mandated via Technical Note 01/2011, the presentation of waste reduction goals and final disposal targets for each licensed project, following the hierarchy of reuse, recycling, and then disposal in landfills or incineration, with periodic reassessment. IBAMA also tracks the number of trips and distances traveled by waste from the support base to its destination, encouraging optimization and reduction of resulting GHG emissions.
From a corporate perspective, most oil companies have committed to Net Zero GHG emissions, with the circular economy being a vital tool for process efficiency and reducing scope 1 and 2 GHG emissions by keeping resources in use for as long as possible.
Periodic publication of sector results with a holistic view of the entire chain, covering all activities directly supporting the segment, provides a better perspective on where to act to improve waste reduction and reuse ac
Thus, the circular economy starts with the procurement of products and services to be used. Products with high durability, potential for reuse and recycling, and easy segregation after use should be sought.
Offshore, the key step to meet the principles of the circular economy is the segregation of waste right after its generation. This segregation drastically reduces the amount of waste considered “contaminated” or “non-recyclable,” which otherwise has no better use than as an energy source.
IBAMA’s Technical Note 07/2011 indicated that oily waste leads waste generation in offshore E&P activities in Brazil, accounting for 36% of the total. This is followed by metallic waste at 25%, and “contaminated” waste at 13%. “Non-recyclable” waste, at 11%, along with contaminated waste, is primarily destined for incineration or landfill. Recent reports confirm the continuation of this waste generation trend.
Challenges
Support bases receive waste generated offshore and also produce waste associated with E&P activities, notably wastewater from cleaning support vessel tanks. This waste is not monitored by IBAMA (responsibility of the state where the base is located), with no targets for reduction or reuse. Although exact figures are unavailable, we know these cleanings consume significant amounts of clean water, discarded post-treatment without reuse.
Waste transport reports to IBAMA show some waste travels about 500 kilometers to its final destination, with over 700 trips/year from the support base to the final waste destination of a single production enterprise. The presence of waste receivers in the State of Rio de Janeiro, Brazil’s largest oil producer with 75% of offshore production, could improve these figures.
Reducing waste is another major challenge. One example is the transformation of chemicals into waste due to expiration or contamination. Returning used fluids and chemicals to manufacturers could lead to reprocessing and re-entry into the production process. Some companies are addressing this challenge by changing the supply contract model to a practice known as servitization (product as a service), starting with contracts for the supply of non-aqueous base drilling fluids.
The use of cooperatives use limited, as regulatory environment demands for licenses and certificates are costly or require highly specialized labor to obtain. Therefore, there is room in the regulatory environment to simplify requirements so that cooperatives can more effectively manage waste generated by the E&P sector, creating income and jobs for many people.
Pathways to Circular Economy
The circular economy emerges as a revolutionary paradigm in the E&P sector, proposing a sustainable path and reducing greenhouse gas emissions. The industry faces challenges such as water reuse, reverse logistics, inventory management, and servitization of chemicals and drilling fluids, along with effective waste management—starting with proper segregation.
Periodic publication of sector results with a holistic view of the entire chain, covering all activities directly supporting the segment, provides a better perspective on where to act to improve waste reduction and reuse activities.
Regulatorily, IBAMA plays a vital role in encouraging waste generation reduction and better waste disposal through the enforcement of set targets. It’s also possible to promote socially appropriate disposal by simplifying requirements for the inclusion of cooperatives among the recipients of E&P waste.
Therefore, it is imperative that the industry fosters the implementation of circular economy practices, not only as a response to regulatory demands but as a fundamental component of its Net Zero strategy for a sustainable world
