Waste Management during the Production Drilling Stage in the Oil and Gas Sector: A Feasibility Study

Andrey Lebedev and Alexey Cherepovitsyn ()
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Andrey Lebedev: Department of Organization and Management, Saint Petersburg Mining University, 21 Line, 2, 199106 St. Petersburg, Russia
Alexey Cherepovitsyn: Department of Organization and Management, Saint Petersburg Mining University, 21 Line, 2, 199106 St. Petersburg, Russia

Resources, 2024, vol. 13, issue 2, 1-30

Abstract: Drilling-waste management is of great importance in the oil and gas industry due to the substantial volume of multi-component waste generated during the production process. Improper waste handling can pose serious environmental risks, including soil and water contamination and the release of harmful chemicals. Failure to properly manage waste can result in large fines and legal consequences, as well as damage to corporate reputation. Proper drilling-waste management is essential to mitigate these risks and ensure the sustainable and responsible operation of oil and gas projects. It involves the use of advanced technologies and best practices to treat and utilize drilling waste in an environmentally safe and cost-effective manner. This article describes a feasibility study of four drilling-waste management options in the context of the Khanty-Mansi Autonomous Okrug of Russia. For ten years of the project life, the NPV under the base scenario is equal to RUB −3374.3 million, under the first scenario is equal to RUB −1466.7 million, under the second scenario is equal to RUB −1666.8 million and under the third scenario is equal to RUB −792.4 million. When considering projects, regardless of oil production, the project under the third scenario pays off in 7.8 years and the NPV is RUB 7.04 million. The MCD and MCV parameters were calculated to be 106 km and 2290 tons, respectively. Furthermore, the study estimates the ecological damage prevented and the environmental effect of each option. Quantitative risk assessments, conducted through sensitivity analysis, reveal that the fourth option, involving the conversion of drilling waste into construction materials, emerges as the most economically feasible. The study also evaluates the interaction between business and government and analyzes the current situation in the sphere of drilling-waste management, concluding with concise recommendations for both companies and official bodies.

Keywords: drill cuttings; drilling-waste management; technical and economic feasibility; ecology; economic efficiency; hydrocarbon fields; construction materials; sustainable development; waste-to-use; Khanty-Mansi Autonomous Okrug (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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