Nenad Duplancic: "Don't fossilize yourself! Towards a new energy model"

Good morning.

My name is Nenad Duplancic
and I'm president and CEO

of Locus Technologies headquartered
in San Francisco, California.

I am honored to present
at this prestigious event

and I want to thank
my colleague Dr. Davor Skrlec

for inviting me
to be part of this timely event.

I must say I am not an oil geologist

and I am not
an expert on offshore drilling.

I am a civil and environmental engineer

turned entrepreneur in software business.

But I do know a lot about

environmental impacts and
consequences of oil and gas usage.

My company helps energy companies better
manage and report their pollution data

stemming from oil exploration
and other energy intensive industries.

My entire career over the last 30 years
in the US has been devoted to dealing

with environmental consequences and
impacts of energy production of any type.

The company I have started
in Silicon Valley is a software company

that manages massive amounts
of data and information

originating from industrial pollution
of water, air, and soil.

Slowing the climate change requires
reducing the amount of greenhouse gases

we put into the atmosphere
and not opening up new sources of carbon.

It is troubling to see
the Croatian government pushing to expand

offshore drilling in the Adriatic
without proper studies and preparation

especially as world scientists
are sounding the alarm

about climate change
and the need to phase out fossil fuels.

Burning fossil fuels is what got us
on the brink of climate change.

So it makes no sense
to double down on oil and gas development

when other options exist.

Offshore drilling comes with
huge risks for the Adriatic,

its pristine beaches, and wildlife.

An oil spill in a place like the Adriatic
would be devastating

for the rich fishing industry
of Croatia and Italy.

I will now address several questions
that relate to offshore drilling

and its consequences
particularly in the Adriatic.

The first one is:

What actions are necessary before one
starts investigation for oil exploration?

Numerous actions are necessary before
one starts offshore investigation.

Almost none of these actions have been
taken by the Croatian government so far.

Some of the common preparatory steps are:

a baseline assessment
of existing flora and fauna

at and around the potential areas
of investigation and exploration.

A risk assessment, environmental
impact report, feasibility study,

geological and geotechnical studies
of ocean floor and sediments,

onshore infrastructure
to service platforms,

onshore resources, hazardous waste
disposal and treatment facilities,

which do not exist
in Croatia for example,

establish a regulatory framework
for environmental protection

and waste disposal
if one does not exist in a country.

And perform a survey
of historic shipwrecks

and sunken cities
in the area of drilling.

The next question is: what are
the specific issues in the Adriatic?

The Adriatic is a closed sea

and any spill would be devastating to
local fishing and tourism industries.

Also, the majority of the Croatian GDP
comes from tourism

and any damage
to the ecosystem of the Adriatic

would have devastating impacts
on the economy not only in Croatia,

but also in Italy, Slovenia, Montenegro,

and potentially other
Mediterranean countries

down radiance from the spill.

One incident like the one
that occurred in 2010

in the Gulf of Mexico, that is 12 times
larger than the Adriatic, would be enough

to destroy the ecosystem in the
relatively small, enclosed Adriatic Sea

and kill tourism and fishing industries.

Let's take a look what other technologies
that are used in drilling

have impacts on the environment.

Offshore drilling operations
create various forms of pollution

that have considerable negative effects
on marine and other wildlife.

Almost in every step of the process
there is a potential for contamination.

Let's start with the effects
of drilling muds.

Drilling muds remove the cuttings
that come from the bottom of the oil well

and help prevent blowouts,
acting as a sealant.

Drilling muds contain toxic metals,
such as lead, chromium, zinc, arsenic,

mercury as well as carcinogens
such as benzine, radioactive materials

and other contaminants
that are discharged into the sea.

There are different types of drilling
muds used in oil drilling operations,

but all of them release chemicals
that can affect marine life.

Whether oil based or water based:
they contain highly toxic chemicals.

One drilling platform
normally discharges more than 19 tons

of drilling fluids and metal cuttings
into the sea in its lifespan.

Drilling activity around oil and gas

is suspected to contribute
to elevated levels of mercury in fish.

Let's look at the effects
of produced water.

Produced water is
fluid trapped underground

and brought up with oil and gas.

It makes up about 20 % of the waste
associated with offshore drilling.

Produced waters usually have an
oil content of 30-40 parts per million.

Other effects of exploration.

Factors other than pollutants
can affect marine wildlife as well.

Exploration for offshore oil involves
firing airguns to generate seismic waves

that can kill fish and marine life,

damage the hearing capacity
of various marine species,

and may lead
to marine mammal strandings.

We have already seen
some of that happening in Croatia

during the recent seismic explorations.

It is important to note

that more drilling muds and fluids
are discharged into the sea

during exploratory drilling
than in developmental drilling

because the exloratory wells
are generally deeper,

they are drilled slower,
and they are larger in diameter.

Other effects of offshore oil rigs:

Offshore oil rigs may also
attract and kill seabirds

by physical collisions
or by incineration by the flare

and oil from leaks.

The rigs cause navigation problems
and present collision hazards.

Flares generate black carbon

that contributes
to climate change and air pollution.

There are also issues
with invasive species

that may not exist at the site
of drilling before it commences.

The response of seabed fauna
to contaminants

has been shown to follow
established patterns

in which there may be high
individual abundance of a few species

close to the source of contamination
due to the organic enrichment effect.

Or a reduced number of individual species
close to the installation.

Let's talk about
malfunctioning platforms.

Among all the undertakings in the world

offshore drilling could rank
as one of the riskiest ventures.

Frequent malfunctions are very common.

We have witnessed several spectacular
oil spills over the last 25 years.

The biggest one was the disaster of the
Deepwater Horizon's blowout in 2010

that released approximately 200 million
gallons of oil into the Gulf of Mexico

and so far cost 40 billion dollars

to clean up contaminated beaches
and coastal wetlands.

It killed birds, fish,
and marine mammals;

devastated the recreation and fishing
based economies in the Gulf states.

But a bigger impact may be the continuous
emissions from operation of the platforms

to the sea, to the sea bottom,
and to the air around it.

Let's answer the question
if there is any difference

between exploration and exploitation
of oil versus gas.

The same drilling rigs are used
when drilling for oil and for gas.

Well completion methodologies will differ
as will production facility requirements.

As far as an environmental impact
during investigation and exploration

from gas or oil wells,
there is practically no difference.

Most of the oil wells
produce some natural gas

and most gas wells produce some oil
and/or natural gas condensate.

In most or all cases the natural gas
is a by-product of producing oil.

Just like taking the lid off a bottle of
Coca-Cola produces a gas and liquid.

Rigs that are designed to get natural gas
will have pipelines to the shore

to transport it back because the
volumes they will be collecting

will be sufficient enough
to make it profitable.

In the Adriatic this creates
another environmental problem: pipelines.

Particularly in the middle and
the south part of the Adriatic

it would be difficult to build pipelines

and gas-only exploration could be
as damaging as oil exploration

in the case of the Adriatic Sea.

So that concludes my presentation.
Thank you very much and have a great day.