In a circular economy, the industry can take advantage of waste, protect water resources, and access less polluting energies.
Environmental discourse often remains just that, discourse. More so in a country where it is difficult to reach an agreement among the government, the private sector, and environmentalists.
The exception seems to be the Circular Economy Strategy, led by the Ministries of Environment and Commerce, which makes Colombia the first country in Latin America to implement such a plan, and the hydrocarbons industry the first sector to adopt it.
The circular economy began in East Asian countries, when it was decided to use fewer materials, water, and energy in production processes, aiming to contribute to the sustainability of the planet.
The hydrocarbons industry, for its part, has sought to include this objective in its operations, making more efficient use of its resources, reusing and recycling those that can be, throughout the entire sector chain.
Data that are unknown to many, and which are even surprising, such as the fact that the hydrocarbons industry uses only 1.61% of the country's water resource and is among the least contributors to greenhouse gas emissions.
Furthermore, it is a leader in environmental investment, through compensation resources for impacts, or by allocating 11% of the equivalent value of each project to initiatives related to water protection, not counting voluntary investment resources in environmental matters.
That is why it should not be surprising its interest in the circular economy, where the industry has seen a great opportunity, mainly through the management of sludge, the reduction in material consumption, the valorization and utilization of waste, the efficient use and protection of water resources, and access to less polluting energy. And at the lower end of the chain, through the continuous reuse of used oils.
Well, wholesale oil distribution companies in the country created several years ago the Used Oils Fund (FAU), as a voluntary post-consumption instrument for the management, utilization, and disposal of used lubricating oil, at service stations and workshops, also controlling the fraudulent reuse of it as if it were original oil. Today, Colombia is a leader in the region in the continuous recycling of used oil.
These are some examples of what the hydrocarbon industry is doing in environmental matters that fit into the National Circular Economy Strategy, to which Ecopetrol and the Colombian Petroleum Association have joined to promote new circular business models in the sector and in companies, through sustainable operations, innovation, efficient use of water and energy, and the reuse of raw materials and waste.
The challenge of the strategy is to transition from a “linear” economy to a “circular” one by consuming fewer raw materials, which requires optimizing production processes; extending the useful life of products and materials; and minimizing generation, as well as better managing and utilizing waste. Benefits related to the reduction of material extraction and energy use, the reduction of waste and emissions.
The social benefits, for their part, include job creation and minimizing impacts on communities. And the economic benefits include the repeated valuation of resources, instead of just once, the reduction of raw material costs (including energy), waste management, and emission control. It is estimated that these savings in Colombia can be, just starting, more than 11 billion pesos.
But beyond what has been achieved is what can be achieved in the future with the Circular Economy Strategy, as its potential is immense. For this, adjustments in public policy are required - in which the Government is working - and the incorporation of innovative technologies, key to the modernization of the sectors, including the environmental one. The great ally of sustainability is innovation, which the hydrocarbon sector is decisively promoting.
Examples, many. We see it in new seismic techniques, in well integrity, in recovery mechanisms, in the treatment of production waters, in CO2 capture, in the use of gas associated with oil for energy generation, in pipeline transportation, in the efficiency of new engines, in the total reuse of used oils. Every day the hydrocarbon industry is innovating, with surprising findings.
In terms of development and sustainability, there are different visions, which are undoubtedly respectable. But many of the differences could be bridged if dialogue between actors is deepened, with more information and facts, and fewer perceptions.
Hence the importance of initiatives like this one, of circular economy, which seeks to bring everyone to the same side: Government, environmentalists, and the private sector. Not to delve into what divides them, but to work on what unites them.
Colombian Association of Oil and Gas