Offshore Industry Thematic Assessment

Executive Summary

The environmental pressures from offshore industry during exploration, production and decommissioning include the discharge of produced water, oil, chemicals, drilling muds and cuttings, the physical impact from the placement of installations and pipelines, noise from seismic surveys and drilling, light emitted from the installations, and atmospheric emissions.

These pressures are greatest in the Greater North Sea, followed by the Arctic Waters and Celtic Seas Regions. In the Bay of Biscay, Iberian Coast and Wider Atlantic Regions, there are fewer installations and the pressures are considered to be relatively low.

OSPAR has put in place a significant number of measures aimed at reducing the discharges from offshore industry within the OSPAR area and thus reducing their impacts on the marine environment.

Studies have been undertaken by Contracting Parties examining the potential impacts, including historical cuttings piles, produced water, drilling fluids and chemicals. There has been a measurable decrease in emissions and discharges since QSR 2010. Activities that were once widespread, such as the discharge of oil-based fluids, have ceased and the level of contamination has decreased over most of the OSPAR area. A lessening of existing impacts has been seen, for example a reduction in the amount of dispersed oil discharged in produced water and the phase out and reduction of discharges of hazardous offshore chemicals. A risk-based approach to the management of produced water discharges has also been introduced.

Contracting Parties have also fully implemented the ban on dumping or leaving in place disused offshore installations. Since 1998, approximately 170 installations have been decommissioned and 10 installations granted derogations from the ban.

Monitoring and reporting indicate that these OSPAR measures have significantly improved the quality of the OSPAR Maritime Area as a whole, particularly in the North Sea, where there are high levels of oil and gas activity.  
OSPAR will continue its work in accordance with the relevant operational objectives set out in the North-East Atlantic Environment Strategy 2030 (NEAES 2030).

Figure 1: Details of the location and status of Offshore Installations within the OSPAR maritime area in 2019. Available at: ODIMS

Q1. Identify the problems? Are they the same in all OSPAR Regions?

Impacts across the OSPAR Regions

Offshore oil and gas activities have developed in the OSPAR area over the past 50 years. Environmental pressures can arise throughout the lifecycle of these activities, from exploration to production and decommissioning, through the discharge of produced water, oil, chemicals, drilling muds and cuttings, the physical impact of the placement and removal of installations and pipelines, noise from seismic surveys and drilling, light emitted from the installations, and atmospheric emissions.

These pressures are greatest in the Greater North Sea, followed by the Arctic Waters and Celtic Seas Regions. In the Bay of Biscay and Iberian Coast and Wider Atlantic Regions, there are fewer installations and the pressures are considered to be relatively low.

Produced water is the main source of oil discharge

Produced water is a by-product of oil and/or gas production operations and includes formation water, condensation water and re-produced injection water. The continuous discharges of produced water are an environmental concern, as they represent the largest source of crude oil contamination of the sea from offshore oil and gas operations. In addition to the natural pollutants in the oil, potentially hazardous production chemicals are also discharged.  

Produced water is usually either discharged into the sea after treatment or injected back into the reservoir from where it originated. The main source of oil discharge from routine offshore oil and gas production operations is produced water.

Offshore chemicals can affect marine organisms

Offshore chemicals are used in a variety of applications during drilling, production, and decommissioning operations. The main discharges of chemicals arise from drilling activities and discharges of produced water. Some of these chemicals may be hazardous because they contain substances that are either persistent, toxic and/or bio-accumulative. The effects on marine organisms when such chemicals are discharged into the marine environment can be acute or long term, and can ultimately have effects on human health via the food web.

The drilling process involves the use of drilling fluids (or muds) and the discharge of drilling fluids along with drill cuttings, which may cause some smothering in the near vicinity of the well location. The impacts from such discharges are localised and transient but may be of concern in areas with sensitive benthic fauna, for example corals and sponges. Concerns have been raised about possible releases of oil and chemicals from the disturbance of historic cuttings piles during decommissioning activities or during bottom trawling after decommissioning.

Physical footprint

The physical presence of installations and pipelines will potentially lead to physical and biological changes on the seabed. Designated protected areas, particularly those containing habitats such as sandbanks and biogenic reefs, are likely to be more sensitive to these changes than the wider maritime area. 

Noise can affect marine organisms

Anthropogenic noise emitted in the marine environment can potentially affect marine organisms in various ways. It can mask biologically relevant signals; it can lead to a variety of behavioural reactions; hearing organs can be affected, leading to hearing loss, and, at very high received levels, sound can injure or even kill marine life. The documented effects on marine life vary greatly, from very subtle behavioural changes, avoidance reaction and hearing loss to injury and death in extreme cases.

Light from installations may affect migrating birds

There are concerns about the impacts on migrating birds caused by flaring and lighting from offshore installations. A significant number of bird species migrate across the North Sea and may become attracted to offshore light sources, with fatal consequences for many individuals.

Q2. What has been done?

The OSPAR Commission has put in place a significant number of measures aimed at reducing emissions and discharges from the oil and gas industry within the OSPAR Maritime Area. The vast majority of these have been made since 2000 and aim to reduce the environmental impacts of the industry on the marine environment. Measures introduced by OSPAR have reduced oil in produced water discharges and the use and discharge of chemicals and drilling fluids. OSPAR has with a few exceptions, effectively prohibited the disposal of disused offshore installations at sea.

OSPAR measures to manage pressures from offshore oil and gas and carbon dioxide storage

• Decision 2000/3 on the Use of Organic-Phase Drilling Fluids (OPF) and the Discharge of OPF-Contaminated Cuttings;
• Recommendation 2012/5 for a Risk-based Approach to the Management of Produced Water Discharges from Offshore Installations, as amended by OSPAR Recommendation 2020/3;
• Recommendation 2006/5 on a Management Regime for Offshore Cuttings Piles;
• Recommendation 2001/1 for the Management of Produced Water from Offshore Installations, as amended by OSPAR Recommendation 2006/4 and Recommendation 2011/8;
• Decision 2000/2 on a Harmonised Mandatory Control System for the Use and Discharge of Offshore Chemicals, as amended by Decision 2005/1;
• Recommendation 2006/3 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that Are, or Which Contain Substances Identified as Candidates for Substitution, as amended by OSPAR Recommendation 2019/2;
• Recommendation 2005/2 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that Are, or Contain Added Substances, Listed in the OSPAR 2004 List of Chemicals for Priority Action;
• Recommendation 2010/3 on a Harmonised Offshore Chemical Notification Format, as amended by OSPAR Recommendation 2014/17, OSPAR Recommendation 2019/3 and OSPAR Recommendation 2021/8;
• Recommendation 2017/1 on a Harmonised Pre-screening Scheme for Offshore Chemicals;
• Decision 98/3 on the Disposal of Disused Offshore Installations;
• Recommendation 2010/18 on the prevention of significant acute oil pollution from offshore drilling activities;
• Recommendation 2003/5 to Promote the Use and Implementation of Environmental Management Systems by the Offshore Industry, as amended by OSPAR Recommendation 2021/7;
• Decision 2007/2 on the Storage of Carbon Dioxide Streams in Geological Formations;
• Decision 2007/1 to Prohibit the Storage of Carbon Dioxide Streams in the Water Column or on the Seabed.

Q3. Did it work?

Studies have been undertaken by OSPAR Contracting Parties looking at a wide range of potential pressures including those from historical cuttings piles, discharges of produced water, drilling fluids and chemicals. There has been a measurable decrease in emissions and discharges. Impacts that were once widespread, for example from the discharge of oil-based fluids, have now ceased and the level of contamination has decreased over most of the OSPAR area. Where potential impacts may still occur, these have been reduced, as in the case of the amount of dispersed oil discharged in produced water; the phase out of added chemicals identified for Priority Action (OSPAR’s List of Chemicals for Priority Action (LCPA)) and the reduction in discharges of hazardous offshore chemicals.

The following summarises the progress made:

• A 16% reduction since 2009 in dispersed oil discharged in produced water has been achieved through the application of the standards set out in OSPAR Recommendation 2001/1 for the Management of Produced Water from Offshore Installations, as amended.
• A decrease in the number of installations exceeding 30 mg/l of dispersed oil in produced water discharged to sea has been achieved through the application of the performance standard set out in OSPAR Recommendation 2001/1 for the Management of Produced Water from Offshore Installations, as amended.
• The phasing out of added chemicals identified for Priority Action (LCPAs) was achieved through the application of OSPAR Recommendation 2005/2 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that Are, or Contain Added Substances, Listed in the OSPAR 2004 List of Chemicals for Priority Action.
• The almost 50% reduction in the use and discharge of substances carrying substitution warnings can be directly attributed to the implementation of OSPAR Recommendation 2006/3 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that Are, or Which Contain Substances Identified as Candidates for Substitution, as amended.
• The introduction of a risk-based approach to assess the environmental risk posed by produced water discharges including naturally occurring substances, in accordance with OSPAR Recommendation 2012/5 for a risk-based approach to the Management of Produced Water Discharges from Offshore Installations, as amended To date, 54 % of installations have been assessed as having their discharges under adequate control, 39 % require further action to be taken, and the remainder are still under assessment.
• Disused offshore installations are no longer dumped in the OSPAR Maritime Area, in accordance with OSPAR Decision 98/3 on the Disposal of Disused Offshore Installations. Since 2010, four derogations for footings of steel installations have been issued and further derogations for footings with one steel installation and three gravity based concrete installations were under consideration. A total of 170 installations have been decommissioned.

Q4. How does this field affect the overall quality status?

Monitoring and reporting indicate improvement

The exploration and development of oil and gas within the OSPAR Maritime Area have affected different parts of the environment of the North-East Atlantic. Studies show that the implementation of OSPAR measures has resulted in a measurable decrease in discharges and associated impacts. Impacts that were once widespread, for example from the discharge of oil-based fluids, have ceased, and the level of contamination has decreased over most of the OSPAR area. Where potential impacts still occur, they have been reduced, for example by over 20% in the amount of dispersed oil discharged in produced water; by the phase out of discharges of added offshore chemicals identified for Priority Action (LCPA); and by almost 50% in the discharge of chemical substances identified as candidates for substitution (although further reductions in discharges are considered possible).

Evidence from monitoring and reporting indicates that the overall effect of these OSPAR measures and their implementation by Contracting Parties has been to significantly improve the overall quality status of the OSPAR Maritime Area as a whole, particularly in areas of Region II where there are high levels of oil and gas activity.

The progress made in relation to the North-East Atlantic Environment Strategy 2010 – 2020 thematic objectives may be described as follows:

To achieve, by 2020, a reduction of oil in produced water discharged into the sea to a level which will adequately ensure that each of those discharges will present no harm to the marine environment.

There has been reduction in both the concentration of oil in produced water discharges and the volume of oil discharged. Work is ongoing to ensure that oil in produced water discharges does not present harm to the marine environment.

To have phased out, by 1 January 2017, the discharge of offshore chemicals that are, or which contain, substances identified as candidates for substitution, except for those chemicals where, despite considerable efforts, it can be demonstrated that this is not feasible due to technical or safety reasons (OSPAR Recommendation 2006/3).

While progress has been made in reducing the use and discharge of chemicals identified as candidates for substitution since the introduction of OSPAR Recommendation 2006/3, phase-out has not been achieved. Recognising that more needs to be done to reduce discharges of substitution chemicals a new deadline to phase out by 1 January 2026 has been agreed.

To continue monitoring the development of carbon capture and storage with the objective to ensure that CO2 streams are retained permanently in geological formations and will not lead to significant adverse consequences for the marine environment, human health and other legitimate uses of the Maritime Area (OSPAR Decision 2007/2).

There are only two full-scale projects on carbon dioxide storage in the OSPAR area. Due to this very limited number, an evaluation of the effectiveness of OSPAR Decision 2007/2 has not yet been undertaken.

Q5. What do we do next?

OSPAR will continue to take all possible steps to prevent and eliminate pollution and adopt the necessary measures to protect the OSPAR Maritime Area against the adverse effects of human activities.

Since QSR 2010 and thanks to the implementation of OSPAR measures by Contracting Parties and industry, the oil and gas industry has made measurable progress and improvements in reducing environmental impact. However, there are areas where it may be possible to further reduce the potential impacts, including the following:

• Linking estimated risk levels calculated through the risk-based approach to possible impacts in the receiving environment is a step that has not yet been addressed.
• While progress has been made in reducing the use and discharge of chemicals identified as candidates for substitution since the introduction of OSPAR Recommendation 2006/3, the challenge remains to phase out discharges of substitution chemicals.
• Continuous improvement remains a challenge, with hydrocarbon production at different stages in different regions and new developments continuing in Region I and II.
• Good practice guidelines for geophysical surveys and use of explosives need to be developed and is relevant to the OSPAR regional action plan to reduce noise pollution.
• On decommissioning, as older installations reach their end-of-life, it is anticipated that a number of installations will be decommissioned in the coming decade. While there has been progress in advancing certain technical capabilities, such as the increase in lift capabilities for removing topsides and steel jacket installations, no technology has been developed that would support a reduction in the categories eligible for derogation from OSPAR Decision 98/3.
• There are only two full-scale projects on carbon dioxide storage in the OSPAR area. Due to this very limited number, an evaluation of the effectiveness of OSPAR Decision 2007/2 has not yet been undertaken. While scientific knowledge of the environmental risks of carbon dioxide storage in geological formations is developing, the need for improving and refining the reporting to OSPAR on environmental monitoring of carbon dioxide storage projects has been identified.

Work will continue in accordance with the relevant operational objectives set out in NEAES 2030:

S2.O3 By 2027 OSPAR will ensure that measures to eliminate discharges, emissions and losses of hazardous substances are in place to achieve or maintain good environmental status for hazardous substances, including through working regularly with other organisations.

S2.O4: By 2026 OSPAR will further develop the Harmonised Mandatory Control System for the use and discharge of offshore chemicals to improve coherence with other relevant international requirements such as the EU REACH¹Regulation and the Biocidal Products Regulation.

S4.O5: By 2025 OSPAR will adopt programmes and measures to control and, where appropriate, phase out plastic from materials placed at sea for the purposes of marine infrastructure developments.

S4.O6: By 2027 OSPAR will develop measures to control, and where possible, phase out discharges of plastic substances, including microplastics, contained in chemicals from offshore sources.

S7.O1: By 2028 OSPAR will further develop methods for the analysis of cumulative effects in the marine ecosystems of the North-East Atlantic, taking into account relevant spatial and temporal information on human activities, pressures, sensitive receptors and habitats, and use the results to inform the establishment of measures and actions to prevent, reduce or otherwise manage impacts.

S8.O1: By 2025 OSPAR will agree a regional action plan setting out a series of national and collective actions and, as appropriate, OSPAR measures to reduce noise pollution.

S9.O2: By 2023 OSPAR will review and, if appropriate, amend the categories of disused offshore installations where derogations may be considered under OSPAR Decision 98/3 on the Disposal of Disused Offshore Installations, aiming to reduce the scope of possible derogations. The review will be based, inter alia, on the advancement of decommissioning technologies and on the best available scientific knowledge.

S9.O3: By 2023 OSPAR will agree on an approach and on actions to promote and advance decommissioning technologies under the framework of Decision 98/3 with the aim of reducing the scope of possible derogations.

S10.O3: In 2023, and every 6 years thereafter, OSPAR will assess the current and projected impacts of climate change and ocean acidification on the OSPAR maritime area and its uses, to inform the development of national and international actions.

S12.03: By 2024 OSPAR will review the results of monitoring that is undertaken in relation to carbon dioxide storage to assess whether the monitoring techniques deployed are adequate to demonstrate that carbon dioxide streams are retained permanently in the storage complex. By 2026 OSPAR will evaluate the effectiveness of OSPAR measures to ensure that carbon dioxide streams are retained permanently in the storage complex and will not lead to any significant adverse consequences for the marine environment, human health and other legitimate uses of the maritime area. 

Footnotes

Regulation (EC) No 1907/2006 on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) 

Offshore Industry Feeder Report

Contributors

Lead authors: Reidunn Stokke and Saravanan Marappan

Supporting authors: Mikael Palme Malinovsky, Andrew Taylor, Bee Berx, Federico Cornacchia and Adrian Judd

Supported by: Intersessional Correspondence Group on OIC deliverables to the Quality Status Report (OIC-ICG-QSR), Offshore Industry Committee (OIC), Intersessional Correspondence Group on managing delivery of the Quality Status Report 2023 (ICG-QSR), Intersessional Correspondence Group on Ecosystem Assessment Outlook – Cumulative Effects Assessment (ICG-Eco-C), Intersessional Correspondence Group on Economic and Social Analyses (ICG-ESA), Climate Change Expert Group (CCEG) and OSPAR Commission Secretariat

Citation

OSPAR, 2023. Offshore Industry Thematic Assessment.In: OSPAR, 2023: Quality Status Report 2023. OSPAR Commission, London. Available at: https://oap.ospar.org/en/ospar-assessments/quality-status-reports/qsr-2023/thematic-assessments/offshore-industry/