For the Colorado Oil & Gas Association (COGA) — organizers of the popular annual event The Energy Summit — the pandemic compelled them to react decisively and turn a potential crisis into an opportunity, with the popular event going virtual for the first time in history.

Kicking off with an in-person golf tournament on August 17, this year’s online conference runs from August 18 to 19 and will replicate the Summit experience in an online forum. Featuring informative panel discussions with industry experts and stakeholders, live discussions, networking opportunities, a unique sponsor area and much more, COGA representatives are excited about the upcoming event.

“It’s a real opportunity for us to showcase that we are responding to the times and still meeting the needs of our members by providing this great experience and doing so in a very unconventional way,” says Sara Reynolds of the positive attention surrounding this year’s Summit. As COGA’s Vice President of Operations and Conference Director, Reynolds is responsible for the daily operations of COGA and other areas including programs and events, membership development, and financial management.

Reaching a wide audience
Formed in 1984, COGA started off small as the Denver Julesburg Petroleum Association. With an initial focus on oil and gas issues in Greeley and Weld counties, the organization soon grew its staff numbers and membership. A statewide trade association, COGA’s membership – which has reached about 300 member companies – represents many players in Colorado’s oil and natural gas sector, including upstream producers, big multinational corporations, smaller Colorado-based companies, midstream, downstream, related service providers through the production process, and professional services including the lending, investment and private equity community, legal services, regulatory specialists, and professional services groups.

“COGA is not only a full-service trade association, but we also represent the entire value chain of oil and gas in Colorado,” says President and Chief Executive Officer Dan Haley, who leads the industry on matters ranging from regulatory issues to public relations and Colorado legislature, supporting members though advocacy, education, stakeholder engagement and other initiatives.

The organization was founded on the vision of individuals including Fred Julander, one of the first to recognize the abundant supply of dry, clean-burning natural gas in Colorado and the need for greater exploration. Four years after COGA was created, the Association launched the Gas Conference. Changing its name over time to the Rocky Mountain Energy Summit and known today as The Energy Summit, the event is highly diversified, attended not only by industry professional, but also policy- and decision-makers, elected leaders, agriculture representatives, homebuilders, and a host of other individuals.

“We want all these people in the room, because this is where we are discussing the important issues of our time, namely what our members are doing in Colorado and how we are trying to move forward,” comments Haley. “We want to make sure all those people are hearing these messages and are part of the discussion. Our goal is to be an advocate for our members and to be a voice for them, through public relations and media relations or working with our state’s regulatory body on rulemakings… being an important arm of outreach and education in our community. This is what the conference really does so well – that outreach and education component.”

32^nd Summit
Although this year’s Summit will be different because of the pandemic, event organizers are optimistic, hoping to capture 30 to 40 percent of attendees from past in-person events. However, they are hearing from other organizations that virtual attendance is actually rivaling in-person conferences. “People want to receive professional development this year and for the foreseeable future, and virtual events are really the only option,” says Reynolds.

Keeping a pulse on the pandemic, Reynolds, Haley and the team at COGA realized by mid-March that with schools closing in Colorado and nationwide, COVID-19 would not be over by the time of the Summit in August. Soon, COGA was renegotiating contracts with its conference venues and vendors, and reimagining the 2020 Summit as an online event.

“Before we even made the decision, we felt we needed to be in touch with all of our stakeholders and sponsors,” says Haley, “and some were already committed to sponsor the conference. This is a large event; we get upwards of a thousand people attending, and there are a lot of stakeholders who come for different reasons, and before we made any decision, we really needed to evaluate what our stakeholders had to say.” Using its time to make advance preparations to pivot to the virtual platform, COGA announced in early June that the Summit would be online.

Unique forum
Featuring topics such as “Oil & Gas Employment Trends – Riding Through Market Disruptions,” “Turning Conflict Into Opportunity – Resolving Oil and Gas Conflicts Between Local, State and Federal Governments,” and “Impacts of the Crude Price War and COVID-19 –Who Survives in an Oversupplied, Low Commodity Price Environment?”, this year’s Summit will see speakers record panel discussions close to the August 18 start date. The format will simulate an in-person event familiar for speakers and attendees alike, replicating the experience of being in the audience and watching panelists on stage.

Providing the opportunity for facilitated conversations, moderators will be on hand during sessions to keep discussion flowing and focused. Following discussions, there will be a 15-minute window with real-time live Q&A. “It was our solution to really replicate that conference experience for the attendees, that what they were viewing was similar to what they would see on stage, but they would also have that dynamic and live interaction piece as well,” explains Reynolds. “For sponsors this is also a really unique opportunity because they can have a live interaction with attendees but don’t have to make the time commitment, incur expenses, travel, and all those aspects that make traditional tradeshows more of a burden for exhibitors.”

With sponsorship a key component of all such large events, The Energy Summit will feature a sponsor hall, an interactive version of the platform where sponsors have their own customizable and brandable exhibition booths where they can feature PowerPoint presentations, air informational videos, or perform live interactions with attendees via chat or video conferencing. Sponsors can also sponsor specific general sessions, showcase their logos, and do a brief 30-second introduction if they choose. “It’s different, but we’ve done our best to replicate those opportunities that you would typically have at an in-person conference, but in a virtual platform,” says Reynolds.

Facing the future
A tremendous platform for information and education about oil and gas in the state, The Energy Summit provides attendees the opportunity to learn about key issues affecting the industry not only in Colorado, but across America, such as regulatory processes. As technology continues advancing, there have been shifts in the regulatory process referring to specific technologies, and the Summit will provide opportunities to have meaningful conversations about technology, innovation, and ways operators can innovate to achieve positive outcomes. And with 2020 being an election year, Colorado is one of the few states with a citizen initiative process, where voters can propose initiatives and petition their way onto the statewide ballot. These political factors and others will influence the oil and gas sector, and the Colorado Oil & Gas Association will be there on behalf of its members.

“We will have political strategists from both sides of the aisle talking about what they see happening this November,” says Haley, “the trends that are out there among the electorate on the left and the right, bring it back into Colorado and see how they will impact important industries like oil and gas.”

The fifth largest natural gas producer in the country and the sixth largest producer of crude oil, Colorado is key to the future of oil and gas. “This conference really represents what so many of us are having to do, which is adapt,” says Reynolds. “We are all part of a larger community and impacted by things in a rapidly changing world that come at us that we can’t always anticipate, but we need to respond to. Rather than spending our time wishing for things to be different or hoping for the good old days, we need to embrace it. Change is inevitable, and we need to be able to pivot and accept things in a different way. We are able to offer things in a way we haven’t been able to offer in the past, and it’s a really great lesson for all of us – to be adaptable, embrace change and seek opportunities when that change comes.”

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Throughout the ages, oil has played an important role in everything from heating homes to embalming – an agent used by Ancient Egyptians. Vital to our everyday lives, crude oil is refined and transformed into gasoline, jet fuel, paints, medicines, asphalt and other roofing materials, fibres for clothing, insecticides, detergents and more. One of its unique purposes is synthetic fertilizer.

Used by farmers for thousands of years to fortify soil, fertilizers were commonly a combination of manure mixed with minerals. Remaining largely unchanged for centuries, fertilizer research grew thanks to Baron Justus von Liebig. Known as the ‘father of the fertilizer industry’ and agricultural chemistry, the German scientist made great strides in the field of organic chemistry, particularly in the 1840s. Among Liebeg’s many discoveries was that adding sulphuric acid to soil boosted the amount of soil phosphorous to plants, which led to an increase in the production and quality of sulphuric acid manufacturing.

In the decades since Liebeg’s pioneering work, the composition of fertilizers continues to evolve. Do-it-yourself gardeners regularly add everyday items like crushed egg shells and used coffee grounds to their soil, providing additional calcium and nitrogen, regulating soil acidity (pH), attracting earthworms, and improving drainage to help plants grow and thrive. On a large scale, oil industry by-products are used as a component to make commercial fertilizer, which helps improve crop yields.

According to the Washington D.C.-based Fertilizer Institute – which serves as a source of information and advocates on behalf of the industry – 17 elements are essential for plants to grow, and the “Big 3” primary nutrients found in commercial products are nitrogen, potassium, and phosphorous. Both primary petroleum products and by-products are critical to the manufacture of fertilizer, one of them being natural gas. When natural gas is mixed with atmospheric nitrogen, it results in ammonia, and is also needed to generate heat for conversion. And since fertilizer is transported by ships to trucks, petroleum is needed as fuel.

Another petroleum-based product used in the manufacture of fertilizer is coke. Operating in Kansas, Coffeyville Resources Nitrogen Fertilizers became the first and only fertilizer company in North America to use petroleum coke – considerably cheaper than natural gas – in the manufacture of nitrogen fertilizers back in 2007. Creating a technologically advanced compression station in 2013, Coffeyville began capturing excess carbon dioxide. Rather than releasing the greenhouse gas into the atmosphere, the company began selling over 600,000 tons (annually) to a local oil producer, “which uses the gas to enhance its crude oil production,” according to The Fertilizer Institute.

Interestingly enough, the relationship between the fertilizer plant and the oil refinery doesn’t stop there. One of the by-products of oil refining is petroleum coke, also known as ‘coke’ or ‘petcoke.’ With over 80 percent carbon, petroleum coke is essential to manufacturing fertilizer, where it undergoes a gasification process to create ammonia and urea ammonium nitrate. This is then used to create nitrogen fertilizers.

Another important addition to fertilizers is coal fly ash. Essentially the tiny particles left over from burning pulverized coal in coal-fired boilers, coal fly ash is an ingredient in concrete, road materials, and fertilizer, where it helps stabilize soils. While some are cautious about toxic metals in the product, coal fly ash is used across the American Midwest and in China as a slow-release fertilizer.

With the disposal of fly ash considered an environmental issue, its use as an ingredient to boost soil fertility makes it a practical, eco-friendly and useful addition to fertilizer. “Ammonia is manufactured using atmospheric nitrogen and hydrogen derived from natural gas or petroleum refinery by-products,” states the EPA on its website, epa.gov/eg/fertilizer-manufacturing-effluent-guidelines. “Ammonia is sold as a straight ferilizer [sic], and is used to manufacture urea, ammonium nitrate and nitric acid products.”

Depending on who you ask, there are both benefits and downfalls to natural or “organic” fertilizers as well as mass-manufactured synthetic products made with petroleum by-products including Potassium Sulfate, Ammonium Phosphate, Ammonium Nitrate, and Superphosphate. Although controversy remains over the potential impacts of synthetics on soil and human health – some environmentalists object to any form of petroleum-derived by-products in fertilizer – plants cannot tell the difference between what is natural and what is synthetic, since the chemicals are identical. This has led to myths that fertilizers made with petroleum by-products are inherently “bad” or harmful.

In its purest forms, fertilizer marketed and sold as organic comes from all-natural sources, such as plant matter, manure, peat moss, seaweed, and bone meal made of cleaned, dried animal bones ground into powder, a source of phosphorus. By comparison, inorganic fertilizer contains mined minerals like magnesium sulfate and potassium chloride, synthetic chemicals, and inorganic nitrogen derived from petroleum.

To grow, plants require specific mineral nutrients including nitrogen, calcium, magnesium, sulphur, and micro-nutrients including manganese and zinc. While these minerals are less abundant in organic fertilizers, some people prefer to use them over chemical fertilizers because of concerns about non-renewable sources (petroleum) and potential chemical toxicity leaching into the soil and groundwater, impacting ecosystems. Synthetic fertilizers also do not add organic content or support microbiological soil life. Improper or excessive use of synthetic fertilizers can also add too much nitrate content to soil, change the soil pH over time, and potentially contribute to greenhouse gases. If improperly used, chemical-based fertilizers create a crust on the soil, and can even burn plant roots.

For backyard gardeners, the choice of fertilizer comes down to preference and how much time homeowners want to devote to their green thumb. Natural, organic fertilizers are effective yet require more time to break down. Releasing nutrients into the soil at different rates depending on the season and soil temperature, they need to be regularly replenished. By the sheer fact they are created from natural materials like sheep manure, organic fertilizers have an odour, and are messy to handle. They are also more expensive compared to chemical fertilizers, making them less suited for large farms.

Inorganic fertilizers containing synthetics are more suited to large-scale farming. With a guaranteed minimum analysis of total nitrogen, phosphate, iron, zinc, boron and more, their chemical and filler composition is more exact than that found in organic fertilizers.

It is estimated the world’s population will reach 10.9 billion by 2100, making the issue of food scarcity even worse than it is today. A combination of farmland fast disappearing and being replaced by housing along with crop failure, pests and drought will likely see the planet rely more on synthetic fertilizers in the future.

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While many believe the world’s love affair with plastic is relatively new, it actually goes back almost 200 years to Charles Goodyear. Born in New Haven, Connecticut, the young Goodyear lacked formal education, but made-up for it with his innate curiosity and ingenuity. A lifelong inventor, the self-taught chemist discovered – after accidentally dropping sulfur-treated rubber onto a hot stove top – the process of vulcanization.

Issued patent number 3,633 on June 15, 1844 for his “Improvement in India-Rubber Fabrics,” Goodyear detailed how, by combining 25 parts of India rubber with five parts of sulfur and seven parts of white lead with spirits of turpentine, he was able to create a thin, strong fabric “which may be used in lieu of paper for the covering of boxes, books, or other articles.”

He may have died in poverty at 59, but Goodyear’s legacy lives on. With the Goodyear Tire and Rubber Company named after him, posthumously, Goodyear was inducted into the National Inventors Hall of Fame in 1976.

Soon, many others began to build on the back of his inventions, creating developments in plastics including injection molding, the patenting of nylon, and much more. In fact, many of those early plastic products, such as ‘Scotch’ tape, tufts in toothbrushes, and acrylics in paint, are still going strong, long after they were first introduced.

Addressing petroleum waste
From simple household items like spatulas to watch straps, window frames, computer keyboards, piping, and both the interiors and exteriors of cars, it is impossible to imagine a world without plastic in forms such as polyethylene, polycarbonate, polyvinyl chloride, polyurethane, and others.

From medicine to construction, plastics hold countless advantages over traditional materials such as wood and metal. Often easier to manufacturer than steel, plastics are made in huge quantities, resulting in lower costs and greater availability.

Resistant to heat, cold and corrosion, plastics are ideal for piping. Able to be molded into virtually any size or shape, plastics are perfect for everything from delicate syringes to the durable and practical siding and doors that protect homes and businesses. And from an aesthetic perspective, plastics can be made into any color, making them perfect for decorative items.

Made primarily from chemically fabricated synthetics derived from fossil fuels like oil, natural gas, and coal, plastic production – like other manufacturing processes – generates waste.

According to the United States Environmental Protection Agency* (EPA), Americans also produce plastic waste and a lot of it. In fact, it adds up to an estimated 4.51 pounds (2.046 kilograms) per person, every day. Over the course of a year, this amounts to 1,646 pounds (almost 747 kg), of plastic waste for each of us.

While recycling efforts are resulting in less plastic being sent to landfill, plastics still account for 13.2 percent of the total municipal solid waste generated by material (as of the most recent figures in 2017).

Not your usual plastic
Although it seems sometime we are losing the battle against petroleum-based products, many businesses and organizations are viewing plastic waste not as an adversary but as a resource. We are familiar with recycling non-biodegradable plastic containers, but these products – specifically polyethylene and polypropylene – can only be broken-down and remade into new items a few times before they become unusable.

And while reusing plastic products and reducing our dependence on them are options, these options too are limited. Another alternative is to think far beyond the blue box, exploring bold and innovative new uses for plastic waste.

Instead of viewing plastics as a vehicle for single-use purposes, such as a takeout food container, designers are looking at long-lasting applications. Over 50 years ago, the first all-plastic chair made its debut, leading to the mass production of cheaper products, including stackable plastic lawn chairs. Today, many are going back to the inspiration of the mid-Sixties, exploring long-lasting lifestyle products made from materials like ecothylene®.

Created by Belgium-based company ecoBirdy – which recycles old plastic toys into furniture for children – ecothylene was introduced to the European market two years ago, and is a huge success.

Ecothylene’s sorting, processing and manufacturing process is far more advanced and controlled than with other products made from waste materials. Working with a professional recycling partner, the company inspects every object manually prior to sorting and quality checking to prevent contamination.

The result? Eco-friendly colourful furniture made from high-grade plastic waste and unique polymers, so no new plastic or pigment is required, making durable and highly recyclable ecothylene a welcome addition.

By comparison, according to the company, little of the 24 million tonnes of plastic waste produced annually in Europe is recycled, and a mere five percent of new items are derived from recycled plastic.

From waste to resource
Globally, a growing number of manufacturers and associations are acknowledging the many uses of petroleum waste, including the United Nations Environment Programme (UNEP), the Organization for Economic Co-operation and Development, and PlasticsEurope.

A leading trade association, PlasticsEurope works with over 100 member companies handling the production of over 90 percent of polymers in the EU’s 27 member states. Along with showcasing the many benefits of plastics and providing education, another of the association’s mandates is to promote plastic waste as a resource.

Along with encouraging increased recycling and a reduced use of plastic through improved product design, PlasticsEurope’s focus is on “improving waste management first since this has the largest potential for increased growth, energy savings, and more jobs in Europe,” according to the association.

With key recommendations that include the restriction of recoverable/recyclable plastic waste in landfills and eco-efficient treatment options, PlasticsEurope argues that unrecyclable plastic waste is a source of energy.

“A better way of managing plastic waste which cannot be sustainably recycled would be to send it to efficient energy-from-waste facilities to produce electricity, heat or fuel for the production of cement etc. – thereby saving fossil fuels,” says the association. Other organizations such as UNEP agree that more plastic needs to be diverted from landfills.

Sadly, the Covid-19 pandemic has seen a tremendous surge in plastic waste, especially across South-East Asia. While reducing the amount of plastic used and diverting this from landfills are options, another is converting waste into economically viable resources, such as fuel.

“This resource conservation goal is very important for most of the national and local governments, where rapid industrialization and economic development is putting a lot of pressure on natural resources,” says the UNEP in the document, Converting Waste Plastics into a Resource.

“Some of the developed countries have already established commercial level resource recovery from waste plastics. Therefore, having a ‘latecomer’s advantage’, developing countries can learn from these experiences and technologies available to them.”

As technology advances, more and more plastics will be bio-engineered to become degradable, or much more easily recyclable than at present. While some environmentalists believe all plastics should disappear, this will never happen – nor should it – since plastics hold countless advantages over products like metal, wood, and glass for their durability, lack of corrosion, and strength to weight ratio, especially in the construction industry.

With bold new uses for plastic waste emerging every year, including as a replacement for coke in zinc recycling in Sweden’s Rönnskär area, what we know as “plastic” today will keep evolving, with less single-use plastic being produced, and more plastic waste being repurposed.

*(https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/national-overview-facts-and-figures-materials)

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For decades we have heard about the danger of deforestation to the planet from experts, activists, environmental groups and celebrities. Worldwide, actors and musicians including Madonna, Leonardo DiCaprio, and Vanessa Hudgens harness their powerful social media status, reaching millions of followers and boosting awareness about the risks to forests, wildlife, water supplies, and Indigenous persons. Musician and actor Sting has championed the world’s rainforests for over 30 years through the Rainforest Fund. Founded by the former Police band member, his wife Trudie Styler, and Dr. Franca Sciuto in 1989, the Rainforest Fund has expanded its initial focus on the Amazon to encompass Costa Rica, Mexico, Peru, Papua New Guinea and other countries facing deforestation.

Along with protecting the rights of Indigenous persons and safeguarding land “against the destructiveness of resource exploitation,” the Rainforest Fund has backed over 300 projects on issues ranging from land rights to environmental monitoring and clean water, issues affecting forests not only in Brazil, but worldwide.

The roots of forest sustainability
Globally, sustainable forest practices are growing thanks to initiatives from responsible and forward-thinking forestry companies, governments, and environmental associations. It has been almost three decades since Forest Principles were adopted at the United Nations Conference on Environment and Development (UNCED). Known as the Earth Summit, the 1992 event saw the release of Forest Principles addressing key sustainability issues “in a holistic and balanced manner,” and managing these areas “to meet the social, economic, ecological, cultural and spiritual needs of present and future generations.”

Sustainable Forest Management (SFM) – also known as sustainable forestry – is about balancing environmental concerns and the need for forest-related products used to create lumber for construction, fuel, medicine and more. Home to countless plants and wildlife, forests serve as an oasis of tranquility for hikers and campers, and provide a valuable source of employment for lumber companies.

Covered in 347 million hectares (ha) of forest, Canada comes in third worldwide after Russia and Brazil for most forests by area, but leads the way in third-party forest certification. According to the Canada Council of Forest Ministers, the nation is an SFM pioneer not only at home but also globally, benefitting other nations by increasing their forest knowledge and bringing in improved practices.

In Canada, there are multiple systems governing sustainable forestry. These include the Sustainable Forestry Initiative (SFI), the Forest Stewardship Council Standards (FSC) and the Canadian Standards Association’s Sustainable Forest Management Standards (CSA). Standards set forth by the CSA and SFI are internationally recognized by the Programme for the Endorsement of Forest Certification (PEFC). Based in Geneva, Switzerland, the PEFC is a leading global alliance of over 70 members ranging from businesses and trade associations to individuals, labour unions, and non-governmental organizations (NGOs). As of the beginning of 2018, Canada has about 170 million hectares certified by at least one of these bodies, the FSC, the CSA, or the SFI.

Putting practices into place
On a worldwide scale, Sustainable Forest Management is on the rise because of concerns over dwindling resources. Much like systems used to manage the world’s oceans, policies governing SFM are changing and evolving, depending on the location and type of forest – tropical, temperate, or boreal.

A precisely managed system, sustainable forestry requires felled trees to be replaced with new trees (seedlings). After allowing these seedlings to mature, the new trees are then harvested and the cycle of planting and growth continues. The decisions we make today to protect forests and working forests from over-foresting, fire, and climate change will have environment, economic, and social implications in the future.

Much more than just replacing harvested trees, forestry practices require considerable planning, taking not only the forest and types of timber into consideration, but also an assessment of wildlife, watersheds, and more before a single tree is cut down. In some cases – depending on location – sections of forests are deliberately burned to foster regeneration. Until the 1970s, many believed it was important to always put out forest fires, which is not necessarily the case. According to Natural Resources Canada (NRCAN), the benefits of controlled fires enable the release of nutrients into the forest floor, and allow for more sunlight and growth.

Fires also afford certain trees like Jack pine (Pinus banksiana) and Lodgepole (Pinus contorta) the ability to reproduce. While trees are destroyed by fire, they are also reborn – specifically, the Rocky Mountain lodgepole pine. Like other pine trees, seeds are contained within their cones; however, these cones are serotinous. Coated with a strong resin, intense heat – like that from a forest fire – is needed to melt the resin, allowing the cones to open. Once the cones open, powerful winds disperse them across the forest floor, allowing new trees to germinate and grow.

Balancing needs
Sustainable Forestry Management is not new, but it is growing. Canada in particular has taken a sensible approach to SFM, one that works for the environment and business alike. Contributing almost $20 billion annually to Canada’s real gross domestic product (GDP), forests and forestry continue to provide many social, economic and environmental benefits. NRCAN says the three industry subsectors include solid wood product manufacturing, pulp and paper product manufacturing, and forestry and logging, all significant contributors to Canada’s economic growth.

Employing approximately 210,600 men and women nationwide (including almost 12,000 Indigenous persons), “the forest industry represents a smaller percentage of Canada’s economy than other resource sectors, but it creates more jobs and contributes more to the balance of trade for every dollar of value added than do other major sectors.” This is especially the case in the forest-rich provinces of British Columbia and New Brunswick, which account for about 2.9 percent of the provincial GDP and approximately 4.5 percent of the provincial GDP respectively.

With forests disappearing for reasons including atmospheric change, desertification and others, Sustainable Forest Management is now more important than ever. One of the greatest factors remains the planet’s growing numbers. With a current population of 7.574 billion (as of 2018), numbers are expected to reach about 10.9 billion by the year 2050, according to data from the United Nations’ 2019 Revision of World Population Prospects https://population.un.org/wpp/. With more people and decreasing resources, we have no option except to maintain our existing forests for future generations.

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Some businesses are simple businesses – finished goods are shipped from manufacturer to warehouse or distributor. Job done. But mining, oil and gas, and other resource sector companies face many more logistical challenges, including extracting materials from hard to access locations, and transportation by road, rail and water to the processing facility.

Adding complexity is the need to keep costs down, all the while reducing carbon emissions – important considering the pressures on businesses to go green – and lowering environmental impact by hauling loads shorter distances in an energy-efficient way.

Embracing technology
As with many other industries, mining, oil and gas, and pulp and paper have gone through large technological shifts in the past few years. And like other sectors, resource-based businesses are feeling the pinch, striving to lower expenditures, boost efficiencies, and increase profits simultaneously.

An important part of succeeding in this is using the latest digital technology to enhance logistics.

According to Productivity in mining operations: Reversing the downward trend, a report from U.S. based management consulting firm McKinsey & Company, mining companies are changing their direction towards increasing productivity, and away from volume growth.

“Worldwide mining operations are as much as 28 percent less productive today [2015] than a decade ago,” says the McKinsey MineLens Productivity Index (MPI). “Importantly, our research also shows that some mining companies are already turning around productivity performance, suggesting room for improvement throughout the industry.”

According to the report, mining productivity goals took a back seat to the meeting of demand in the 2000s. To address this issue, the MPI was developed to address areas that are within the control of mining companies, including capital, labour and non-labour operating expenditures.

Recommendations to increase declines in productivity, according to MPI, include ensuring mines have effective management operating systems, making operational excellence a priority, and adopting new technologies.

This includes being more receptive to innovation in other industries and making “better use of advanced analytics to harness the potential of the vast amounts of data generated in typical modern mining operations to boost productivity improvement initiatives. Doing this will require a broadening of the responsibilities of operations leaders and tighter integration with other corporate functions.”

Benefits of improved logistics
Using digital technologies and MPI (McKinsey MineLens Productivity Index), performance at individual mines can be tracked. While this requires capital expenditures, benefits such as greater output and enhanced productivity are measured with greater accuracy, an investment which pays off.

In fact, some estimates predict that mining companies can achieve net freight savings of 8 to 12 percent by optimizing efficiencies in their existing freight networks. Large logistics companies with a global presence also have internal methodologies, ongoing staff training, and adhere to verified quality management systems such as ISO 9001.

To accomplish logistics goals requires end-to-end solutions incorporating technology and methodology. To achieve this, mining and mineral companies can use trained employees internally, or retain the services of a 3PL (third-party logistics) company.

Experts in key areas including transportation of goods and warehousing, 3PLs offer many value-added services. Most times, mine sites are located hundreds of miles away from the nearest transportation, and require specialized carriers to handle loads specifically for them.

In this demanding and very specific environment, 3PLs use SAP (Systems Applications and Products in Data Processing), and database management systems like Oracle to monitor workloads.

Host of problems
A lack of carriers, or working with companies unfamiliar with the demands of mining, oil, gas, and other resource-sector operations can create a host of problems. These include unreliable service, not enough carrier capacity to handle large loads, and sky-high freight costs that come from having to pay truck drivers for inbound loads, and empty return vehicle trips.

Working with large 3PLs experienced in the resources sector – as opposed to freight-broker intermediaries who handle transportation – holds many benefits, as they have the expertise to identify and address potential issues such as delays.

3PLs also have business dealings with a base of pre-qualified transportation businesses including trucking companies, railroads, and shippers, and can draw from many companies to move materials at a competitive price.

Big 3PLs have the know-how to determine metrics to improve supply chains. This is extremely important for mining companies who use more than one type of transportation, such as trucks, flatbeds, rail, roads and barges to transport materials to ports and processing facilities.

In-depth knowledge of freight management and logistics is vital to coordinate the movement of product, including potentially hazardous materials, from one location to another via different carriers.

More than moving minerals
Mining, oil and gas exploration and other resource industries need to be constantly moving product to stay competitive and stay in business.

From drilling equipment during the exploration and feasibility phase to spare parts, food, shelter and storage-facility construction, personal protective equipment, clothing and equipment, logistics is vital to ensuring resource sector companies remain profitable.

Just as importantly, logistics is needed during the decommissioning phase, when mining operations come to a close, and reclamation waste, and long-term monitoring comes into effect.

Working with established logistics companies also means mining and other resource-sector businesses can track the movement of goods with greater precision through technology like radio-frequency. Better known simply as RFID, tags or stickers with microchips – sometimes equipped with batteries – are attached to items to track their exact whereabouts, and provide other information like serial, stock or batch numbers.

Along with greater capabilities to handle large volumes of data and materials, big 3PLs tend to be more familiar with other areas impacting logistics, such as the Foreign Corrupt Practices Act. A U.S. law passed in 1977, the FCPA prohibits American companies and individuals from bribing foreign officials, including oversight of third parties such as consultants.

The myriad other benefits that come from working with experienced logistics companies include speedy delivery. If a key piece of equipment breaks down, offshore oil platforms, fracking operations and mine sites stand to lose thousands of dollars every hour they are idle.

To address this, larger logistics companies work with a network of aircraft and trucking firms performing ‘hotshot’ services, picking-up and delivering parts quickly to ensure operations are down for as short a time as possible.

Inflection point
The resources sector is at a point where it cannot afford to lose money through poor logistics, lack of productivity, or any other avoidable inefficiency. According to the McKinsey MineLens Productivity Index (MPI), the mining industry is at an inflection point, “in which digital technologies have the potential to unlock new ways of managing variability and enhancing productivity.”

Specifically, the technological areas include data, computational power, and connectivity; analytics and intelligence; human-machine interaction; and digital-to-physical conversion.

“Taken together, these technologies enable a fundamental shift in the way mining works — a shift marked both by harnessing the flow of information to reduce variability in decision making, and by deploying more centralized, mechanized operations to reduce variability in execution,” says MPI.

Although logistics in the resource sector are challenging, even smaller- to medium-sized mines can benefit from working with established logistics companies to streamline their operations, increase productivity and turnaround times, improve safety, and simply come up with better end-to-end solutions.

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From the Oil Crisis of 1973 and again in 1979, to dozens of major spills like the Atlantic Empress into the Atlantic Ocean and the devastating BP Deepwater Horizon spill of 2010 in the Gulf of Mexico, millions of gallons of oil have found their way into oceans, lakes, and streams.

These disasters and others, like the deadly 2013 Lac-Mégantic rail accident in Quebec’s Eastern Townships, and a fiery train derailment in Saskatchewan this February igniting almost 1.2 million litres, further soured the world’s views on oil.

With the most recent glut in supply caused by the oil price war with Saudi Arabia – and the embroilment of the entire planet into the COVID-19 crisis – some industry insiders are predicting oil could plunge to $10 US a barrel, as overburdened storage tanks reach capacity.

From record highs of over $140 US a barrel in 2008, plummeting to under $20 US per barrel in March, and prices at the gas pumps dipping below $2 per gallon in some American states, many are questioning alternative sources to oil, gasoline, natural gas, propane, shale, and coal.

Shift to biofuels
Factors including high fuel prices, unreliable sources, global political strife, fears over worsening climate change, protests worldwide against oil and gas pipelines, and recent improvements in green energy technology and battery storage, have led to advocacy of alternative fuel options.

Defined as fuels derived from non-fossil sources – unlike crude oil or coal – alternative fuels come in different forms, including liquid, gas, and solar.

While some alternative fuels are combined with petroleum-based products, others, like ethanol, are made entirely from biomass materials with high sugar and starch content like corn, beets, sugar cane, wood chips, and even some grasses.

With added enzymes, these and other raw materials are processed into a mash, cooked and cooled, fermented into alcohol, and distilled.

Although ethanol – sometimes called bio-alcohol – has been in the news recently with stories about farmers converting land used for crops such as soybeans into corn for ethanol (not without controversy, owing to production costs and land use), ethanol has been around for a long time.

Since the time that ethyl alcohol was used in early combustion engines by German inventor Nikolaus Otto in 1860, the history of alcohol fuels has been controversial.

Progressing from heavy taxation during the American Civil War to controversial federal ethanol-production subsidies under the Carter Administration in the late 1970s, and ducking claims by the petroleum industry that ethanol is inferior to gasoline, bio-based fuels, despite the attacks, are not vanishing from the fuel landscape.

The alternative vehicle
Always looking for a telling advantage, visionaries and automobile manufacturers have long experimented with cars powered by sources of energy other than gasoline or diesel.

While cars like the popular Tesla bring environmentally friendly attributes, they also come with their share of negatives. Powered by rechargeable batteries, these cars lack practical range, a consistent theme emanating from owners and reviewers alike. Recently, improvements have been made to the distance obtainable per charge, but even the endurance of the 2020 Tesla Model 3 – which sees the company claim 322 miles for the Long Range version – falls short in real world testing.

Of course, technology guru Elon Musk’s Tesla is not the only electric fuel vehicle on the market. Other manufacturers including BMW, Volkswagen, Honda, Nissan, Ford, Chevrolet, Volvo and Kia are also on board with models like the BMW i3, the Nissan Leaf, and the Chevrolet Bolt.

But, long before battery-powered electric vehicles, cars fuelled by organic-based products were on the road. Even Henry Ford’s famous Model T was assembled with a carburetor enabling it to use gasoline, ethanol, or a mixture of both (but not with a dual-fuel dashboard switch, an urban myth).

This was followed by Ford making lines of trucks and buses, so called ‘generator vehicles,’ with engines running on wood (charcoal) gas.

The number of vehicle manufacturers producing cars powered by alternative sources grew as more facilities worldwide began making biofuel. The first alternative producer in the United States was Pacific Biodiesel.

Opening in 1996, the plant – which transformed used cooking oil and grease from waste traps into fuel – was in operation until 2014, when it was forced to close due to new requirements and permits from the Maui County Department of Environmental Management.

Along with the U.S., which was responsible for the biofuel production of 38,088 metric tons of oil equivalent in 2018, other nations are on board with petroleum-based alternatives. These include Brazil (21,375 metric tons of oil equivalent), Indonesia at 4,849, Germany at 3,445, China at 3,099, and France at 2,727 (all 2018 figures).

From solar to biodiesel
A combination of improved technologies and lower prices for solar cells, government incentives, a growing acceptance of wind power, and reluctance to remain dependent on fossil fuels has spurred growth in alternative fuels. As the world keeps going green, non-petroleum based sources of sustainable energy – which create little or no harmful emissions – are becoming more popular.

As with any fuel, there are pros and cons. While ethanol is readily made from corn, wheat, or other plant-based substances, some question this use of land: removing it from food production and thus impacting food prices.

Other alternative fuels like biodiesel, which can be made from new or recycled vegetable oils and animal fats, are safe and produce far fewer carbon monoxide emissions than gasoline. And unlike oil, biofuels do not need to be extracted from the ground.

One of the key criticisms of biodiesel, however, is that the acreage needed for its creation must be offset by more forests to neutralize carbon dioxide.

Another issue surrounding fuels like biodiesel and methanol is the occasional admix of petroleum products, depending on the type of engine being used. Also, pure methanol, sometimes called wood alcohol, is toxic to the central nervous system if ingested, and can cause blindness.

However, methanol does present some advantages, including that it is harder to ignite than gasoline, has a higher octane rating, and is cleaner-burning. For these reasons, it’s frequently used in racing cars.

According to Petroleum.co.uk, approximately 90 percent of the world’s vehicles still use oil-based fuels, accounting for about 70 percent of all petroleum. While electric vehicles like those from Tesla and even massive electric-powered mining trucks from Komatsu are gaining ground, the coming years will see considerable growth in alternative sources like biofuels.

One of the biggest industries poised to utilize plant, animal fat and recycled grease-based fuels is transportation.

To date, about 98 percent of America’s transportation sector is fuelled by petroleum products. As new technology emerges and engines become more efficient, the use of biofuels will keep increasing. More automotive manufacturers worldwide are embracing dual-fuel or flexible-fuel vehicles (FFV), made to operate on more than one kind of fuel.

Two of the biggest markets are Brazil and the United States, known for their production of oil-based alternative fuels. In the U.S., the Renewable Fuels Association (RFA) has served the nation’s ethanol industry since 1981, and is leading the way towards a cleaner and energy-independent future.

Big jobs & billions of dollars
In its Focus Forward: 2020 Ethanol Industry Outlook, the RFA notes the importance of the ethanol industry to rural Americans in particular.

In 2019, 68,684 jobs were directly associated with the ethanol sector, which also supported another 280,327 indirect/induced jobs, creating $23.3 billion in household income. A huge contributor to the American economy, spending over $27 billion on “raw materials, inputs, and other goods and services,” the ethanol sector also provided $43 billion of America’s GDP (gross domestic product).

The world’s leader in ethanol production, consumption, and export, America last year produced approximately 16 billion gallons, 54 percent of the global total.

As more countries see ethanol and other bio-based fuels as alternatives to oil and gas, the planet will be closer to energy security. While fossil fuels will probably never completely disappear from our daily lives, alternative greener sources will continue to grow.

The post Life After Oil<p class="company">A Look at Alternative Fuels</p> appeared first on Resource In Focus.

From environmentally friendly sources of energy such as solar and wind to thermal power, biomass, hydrogen and hydroelectric, renewables are proving themselves to be cleaner alternatives to fossil fuels like oil, natural gas and coal.

Producing far fewer emissions such as sulfur dioxide, mercury, greenhouse gases (GHG) carbon dioxide, ozone, nitrous oxide and methane from burning fossil fuels, renewable options are fast becoming the choice for investors who care about the future of the planet.

Significant growth
According to recent data from New York-based Kenneth Research, the Global Renewable Energy Market is set to hit US$2,152.9 billion by 2025, a significant increase from $1,486.3 billion just three years ago, and a growth rate exceeding 4.90 percent.

According to market analysis, factors behind the increase include governments and public administrations worldwide making significant investments in renewable sources such as solar and wind because of their viability. There’s also a “rising awareness about carbon footprint management,” namely, curtailing GHGs and reducing pollution.

Worldwide, research institutes are optimistic about renewable energy as sources of electricity on their own, and with other sources like natural gas, which is much cleaner-burning than coal. The International Renewable Energy Agency (IRENA) predicts the increase in this global energy mix to rise from 19.2 percent (in 2014) to 36 percent by 2030.

With Kenneth Research far from alone in predicting massive growth in alternative energy investment, worldwide multinational professional services company Deloitte’s 2020 Renewable Energy Industry Outlook shares the optimism over green energy.

Renewables were responsible for generating 966 billion kWh of electricity in the United States in 2019 – second only to natural gas at 1,582 billion kWh – breaking coal’s record.

Wind and solar provided 23 percent of America’s power generation compared to 20 percent for coal, says the report. “In the first half of 2019, wind and solar together accounted for approximately 50 percent of total U.S. renewable generation, displacing hydroelectric power’s dominance.”

Improved technologies
Part of the reason for the increase in wind power, solar, and other greener sources, comes down to the improved ability to store electricity from renewable sources in batteries.

Published less than a decade ago, the book Investing in the Renewable Power Market: How to Profit from Energy Transformation discusses the then-obstacles to renewable energy storage. Written by Tom Fogarty and Robert Lamb, the book discusses the benefits and risks of investing in green energy from “both an academic and a practitioner perspective,” outlining the pros and cons of alternative energy back in 2012.

“Solar power and wind farms produce power only when the sun shines or when the wind blows,” states the authors. “Often, they must spill off extra power if it cannot immediately be used in production. Science does not yet have giant new technologically innovative fail-safe batteries necessary to store huge amounts of wind or solar power overnight. Thus, by themselves, solar and wind power usually cannot be used for a financial loan guarantee covered by ‘liquidated damages’ for a seven-day-a-week, 24-hour-a-day continuous stream of energy necessary for the vast majority of investors or bank leaders.”

In recent years, the energy storage landscape has changed dramatically with disruptive battery technologies. From bulky and potentially dangerous lead-acid to nickel-cadmium in the past, the planet today works on lithium-ion batteries to power everything from our cell phones to home energy storage devices containing energy captured from the sun.

While lead-acid batteries have been used for years in alternative energy storage, they have a much shorter lifespan compared to lithium-ion batteries’ five to 15 years (depending on usage and maintenance), and which also function much more efficiently, and are compact.

And, with other battery types emerging including silicon-based, proton-exchange membrane (PEM), aluminum-ion, magnesium and others, it won’t be long before lead-acid based batteries are a relic of the past.

Practical and political factors
Trends reveal that significant demand for renewable power comes from not only environmentally-conscious investors, but residential, commercial, and industrial consumers.

According to Deloitte’s renewable energy industry outlook, American corporate contracts for renewable power broke records in 2018 (the most recent data), “as corporations signed power purchase agreements (PPAs) for 5.9 gigawatts (GW) of renewable energy in the first half of 2019,” adding that an estimated 99.6 percent of net new-generation capacity additions (~74 GW) this year is expected to come from solar and wind energy.

Other factors in favour of investing in renewables are the downturn and increased political uncertainty in fossil fuel markets, particularly in Canada and the United States.

That’s not all that’s weakened investor confidence in oil and LNG in Canada. There are ongoing rail blockades over the 416 mile-long (670 km.) Coastal GasLink natural gas pipeline project in British Columbia. Teck Resources Ltd. has walked away from a proposed $15.7 billion U.S. Frontier oil-sands project in Alberta.

And then there’s the recent decision by Warren Buffett-led company Berkshire Hathaway to pull out its $4 billion investment in a $9 billion liquefied natural gas (LNG) plant by Quebec’s Port of Saguenay.

Meanwhile in America, despite President Trump’s pledge to resurrect the coal industry from its decade-long slump, coal-fired power plants are closing at a record rate, including the massive Navajo Generating Station (NGS) in Arizona late last year.

The outlook of energy
From slowdowns and cancelled oil and gas projects to backlash over coal-fired plants and increasing concerns about climate change, markets worldwide are ripe for renewable energy investment. Worldwide it is estimated trillions of dollars will be spent in the coming years on solar, wind, water and other sources of clean energy.

Comprising power generation, heat and transportation, the opportunities for green energy investment are many, encompassing manufacturers and installers, utilities, biofuel producers, independent producers, and many others.

For investors, sources of information on renewables and opportunities include Invesco WilderHill Clean Energy ETF – which holds dozens of renewable energy stocks – and Exchange-Traded Funds (ETFs). Like investing in oil, natural gas and coal, there are perks and potential pitfalls to putting your money in renewables, such as increased competition bringing-down prices of solar panels, for example.

States go renewable
Despite this potential hurdle, more and more states across America are mandating reduced GHG emissions, and focusing on renewable sources of power. In March of this year, the Virginia Legislature joined TK when it passed Senate Bill 851. Requiring the state to obtain all power from renewable sources and nuclear, the move puts the state on the path of becoming 100 percent carbon-free by 2045.

At present, 24 states have joined the United States Climate Alliance, and are committed to lowering greenhouse gas emissions 26 to 28 percent by 2025.

In recent years, renewables consumption of hydroelectric power, solar, wind, ethanol, and other green energy sources has steadily increased across America. In late February, the U.S. Energy Information Administration announced that wind generation surpassed hydroelectric generation in 2019 for the first time, generating 300-million megawatt hours (MWh).

And according to the EIA’s Annual Energy Outlook 2020, it is predicted electricity generation from renewable sources like solar and wind are poised to exceed generation from nuclear and coal in just the next year, and natural gas by 2045.

Anticipating that renewables in America’s electricity generation mix will soar from 19 percent at present to 38 percent in 2050, the report goes on to say that wind and solar power – which already accounts for approximately half of the U.S.’ renewable electricity generation – will continue to lead the way, expected to account for almost 80 percent of the renewables market in the next 30 years.

No longer the pipe dream of scientists and hobbyists, clean alternative sources of power will keep gaining ground in the months and years to come. As the cost of manufacturing components for wind farms and solar arrays (multiple solar panels consisting of cells and modules) continues to drop, and with governments worldwide investing in green energy technologies, the opportunities for investing in renewables will continue to grow.

The post Dollars and Sense<p class="company">The Market for Renewables is Charged with Energy</p> appeared first on Resource In Focus.

When Hurricane Maria slammed Puerto Rico in September 2017, the effects were nothing less than catastrophic. One of the deadliest hurricanes in the history of the United States, the total number of deaths from the devastation remains in question, with the official government figure at 2,975 lives lost.

While no one could have predicted the extent of the damage, decades of an unstable economy combined with a woefully fragile and outdated electrical grid left the Commonwealth vulnerable to disaster. That word is not too strong – quite apart from the personal and familial tragedies, the knock-on effects of the destruction are still being felt three years after Maria’s wrath.

Almost a year (328 days, to be exact) after Hurricane Maria wiped-out power to the Island , the Puerto Rico Electric Power Authority (PREPA) announced that electricity was restored to its 1.5 million customers. Although broadly correct, the announcement was treated with some skepticism by residents, who, months after the hurricane, were still complaining that the power supply was unreliable.

With the extreme windstorm wiping out approximately 80 percent of Puerto Rico’s power grid, revelations, of how poorly designed and constructed the entire system was, soon emerged, including the uncertain plight of citizens depending on electricity for everyday needs such as powering their hospitals, communication systems, factories, stores and homes.

Every generation has its own “Where were you when the power went out?” tales. In November 1965, one of the biggest-ever power outages hit the northeastern United States and Ontario, Canada, spawning a popular myth about housebound, TV-less couples, and the unusual number of births that were registered precisely nine months later.

In August 2003, the northeast blackout paralyzed much of central Canada and the northeastern U.S. Full power took two long weeks to restore.

Major disruptive electricity losses due largely to weather and Category 5 hurricanes like Katrina in 2005, and Hurricanes Irma and Maria in 2017, reveal just how dependant we truly are on reliable delivery of power.

In the 55 years since the Northeast Blackout of 1965 – caused by the failure of a protective relay at a hydroelectric power station – our need for power has skyrocketed. In the Sixties, the average household had an electric fridge, stove, washing machine, one television set, a record player, light fixtures, and a few electrical outlets, usually one or two per room.

Today, many homes have multiple energy-gobbling appliances including clothes dryers and washing machines, coffee-makers, food processors and microwaves, along with stereos and home theatres, multiple flat-screen TVs, and countless devices such as Smart phones, laptops, desktop computers, and gaming consoles like PlayStation, Nintendo, and Xbox.

December 2013 showed much of North America that one of the biggest threats to energy stability is winter storms. A combination of freezing rain and snow crippled eastern portions of Canada and the United States, extending all the way to the Southern U.S., and causing over $200 million in damages to property and power lines. It left many without power for weeks.

The ice storm also triggered mass sales of generators, from small rechargeable battery-powered units to large, home, standby systems powered by natural or liquid petroleum gas, which kick-in automatically when the electricity goes.

With electricity prices rising for households, businesses, and manufacturers, the way we supply, consume, store, and save on energy bills, is no longer just a matter of turning off unnecessary lights and switching to energy-efficient LED bulbs, but big business worth billions of dollars.

Energy storage devices from manufacturers like Tesla, Genesis Energy, AutoGrid, BYD and others are in the market with rechargeable lithium-ion batteries for homes and industrial spaces.

Often operating with an array of solar panels, products like Tesla’s Powerwall and Powerpack store energy from the sun for use during the day, when the demand is higher and electricity more expensive, while drawing power during the evening, when it’s cheaper.

In our homes power outages are inconvenient and annoying, but rarely catastrophic compared to what goes on in data centres, hospitals, senior care facilities and other large-scale institutions where two things precious to us, lives and information, hang in the balance.

The processes the world runs on today don’t so much thrive on data as depend for their very survival on an uninterrupted supply. From daily tasks like banking to making online purchases and updating Smartphone operating systems, our need to access and store information is more vital than ever before.

While many of us routinely store and back up information on our personal computers, more users are taking advantage of offsite Cloud-type storage. These offsite data centres are usually designed to be single purpose.

From a construction standpoint, data centres rival the structural security of Kentucky’s Fort Knox. Often located away from main roads, these robust centres have few windows and doors, but plenty of cameras and intensive round-the-clock security, limiting entry to very few.

On the tech side, security information and event management (SIEM) systems provide security event information in real time. Massive servers generate plenty of heat, and require stable electricity for cooling at exact temperatures. To prevent data loss from electrical outages, data centres have backup and standby generators usually fuelled by liquid-cooled diesel, or natural gas.

The world depends on electrical grids to deliver power via a matrix of generating stations, substations, and high-voltage transmission lines to homes and businesses worldwide. As the lessons of Puerto Rico’s still unstable power grid and various ice storms continue to teach us, electricity delivery requires a lot more than flipping a switch.

To prevent a repeat of power loss during hurricanes to come, as there surely will be, Puerto Rico’s government announced a massive scheme to modernize its power grid.

With a $20 billion budget, the 10-year plan will see extensive repairs, the burying of above-ground power lines, and a greater use of natural gas as a source of energy. Most notable is the government’s intention to create a system at least robust enough to withstand winds of 160 miles per hour (257 kilometres per hour) instead of 145 mph (233 km/h).

Another ambitious initiative put forward by PREPA in its 310-page report, Puerto Rico Integrated Resource Plan 2018-2019, is the division of the Caribbean Island into eight renewable energy “mini-grids” or “micro-grids.” Although inter-connected, the grids would still be able to generate their own power in a crisis.

One alternative: greater use of solar energy with battery storage. While the move towards solar is being applauded by environmental groups such as the Sierra Club de Puerto Rico, the organization is pushing-back on PREPA’s building of any new liquid natural gas facilities.

“Getting new solar and storage deployed quickly should also allow PREPA and its customers to move away from high cost imported fossil fuels, reduce toxic emissions, and reduce costs for families and businesses,” says the Sierra Club’s Senior Strategy and Technical Advisor Jeremy Fisher.

“I hope the utility is able to move forward quickly on cost-effectively implementing these solar and storage plans, and looks to minimize new investments in fossil fuel plants and imports. Puerto Rico has a unique opportunity to transition away from oil and coal, and accelerate towards a clean energy future for the benefit of ratepayers, public health, and the environment.”

While no one can predict the severity of the next hurricane to strike the Caribbean or the scale of damage future ice storms may cause across North America, one thing is certain: as our dependence on electricity keeps growing, the need for reliable 24/7 power – derived from fossil fuels or environmentally-friendly sources like solar and wind – is an absolute necessity.

The post Large and in Charge<p class="company">Energy Infrastructure and Storage We Can Depend On</p> appeared first on Resource In Focus.

The natural resources industry is currently experiencing a period of downturn and when investment slows, the search for resources, and thus prosperity, is forced to go to greater depths and more remote, northern environments, which pose a unique set of problems for the industry to contend with. Most of the accessible and easily exploited deposits have been explored and tapped, and now, exploration activities are more complex, in more challenging terrain and isolated environments, requiring companies to look deeper to find value, navigating complex relationships to do so.

When costs are high and prices are low, this can have far-reaching implications for the entire mining ecosystem and global supply chain at large, and simply relying on the return of prices and demand cannot be a long-term solution to ensure sustainability and viability for the industry moving forward.

Rising costs, including electricity rates and transportation costs (which increase the further north exploration activities go), weak demand and low prices are diminishing the wealth accumulated in the natural resource sector and are having an impact on prices of secondary commodities as well, such as equipment, homes, cars, computers and other electronic devices as they account for increasing costs. Challenging market conditions are slowing investment dollars and thus, the degree to which new exploration activities are taking place. This is especially challenging for smaller companies that have fewer resources to begin with. Larger companies are better poised to weather downturns like these and can instead focus on existing deposits rather than seeking out new deposits with no promise of return.

Global market conditions, however, are only one part of the equation. Looking to the Canadian and Ontario resource markets more specifically, it’s not just a matter of slowing investment that is posing a challenge: there are countless forces at work contributing to this challenging season for the mining and resources sector.

Mining and resource companies in Ontario are faced with challenges related to regulatory uncertainty, issues of jurisdiction, gaps in infrastructure and high operating costs. Electricity costs alone in the province have increased significantly over the last few years.

Likewise, as easily accessible existing deposits are exploited to capacity, companies are forced to go deeper in long-lived mines with more technical and dangerous conditions, or to go north where deposits are harder to access and more costly due to insufficient infrastructure, uncharted and untamed terrain, and inclement weather.

Ontario has a new mineral development strategy to become the leader in sustainable mineral development and production which will effectively serve as a blueprint to guide the industry to have efficient and effective regulations and to be competitive, innovative, safe and environmentally responsible while also being profitable. Acknowledging the importance of northern infrastructure to the operation of the mining and resource sector, $1 billion in public funds have been dedicated to improving access to the Ring of Fire, which is where countless deposits have been found, including the first major chromite discovery in North America in the James Bay Lowlands.

In the first ten years alone, the government expects the Ring of Fire to generate up to $9.4 billion in gross domestic product (GDP) and to employ more than 5,000 people. The project has the potential to result in significant revenue for every level of government, but in order to reap the benefits, investments must be made and relationships must be built. Investments in transportation, communications and energy infrastructure are necessary to not only explore and retrieve the deposits, but also transport them to market, which will likely include rail, marine and highway transportation infrastructure.

Further to investments in infrastructure, the government is responsible for a clear and streamlined investment process and can work to ensure regulatory certainty by serving as a liaison between investors, various government ministries and First Nations communities whose lands are of interest and must be protected.

Ministerial uncertainty can lead to overlap and confusion regarding who to consult, which poses major barriers to development in northern regions. From a jurisdictional standpoint, natural resource governance falls under provincial jurisdiction, but First Nations relations are with the federal government and to protect their treaty and land rights, they look to the Supreme Court of Canada.

Companies and governments have a duty to consult First Nations, whose traditional territories have protections including the consideration of environmental and social impacts of the project and meaningful engagement in the decision-making process. Projects require, “the free, prior and informed consent of the aboriginal peoples concerned,” according to UN Special Rapporteur James Anaya in 2013 and as such, environmental assessments have become a necessary part of any resource development project.

Matters like these are protected human rights, though there is no real framework from which they are formally safeguarded by the Canadian government, as witnessed in the RCMP’s approach to deal with the ongoing dispute between Wet’suwet’en, Coastal Gas Link and the Canadian Government.

The approach to resource development can be as varied as the number of First Nations’ communities there are, so it is important for companies to consult each to ensure there can be consensus reached as to how a development can move ahead and how the benefits of that project will be distributed. It is also important for the government and investors to respect the rights of the community to those benefits.

There are many examples where the company and the community have come together through consultation and engagement to establish impact benefit agreements (IBA) to ensure interests are protected. IBAs can include compensation arrangements, revenue sharing agreements, and reassurance that the community will have a certain amount of project involvement and control.

Beyond economic benefits that can be derived, communities can benefit from employment; however, just as a lack of infrastructure is an issue when looking at exploration and mining activities, a lack of funding, infrastructure and access sometimes leaves the members of the community undereducated and underskilled for the available positions, meaning the labour is outsourced, as are the benefits therein.

Labour challenges continue to persist as not enough qualified candidates are available, indicating the need for additional educational resources to support northern advancement in this regard. Though the mining sector is the largest private sector employer of First Nations’ people in Canada, there is no correlation between high-paying mining jobs and the health and prosperity of a community. There is no promise that the wealth and prosperity derived from a project will remain in the community; in fact, it can produce the opposite effect. Referred to as the helicopter model of development, when companies come in with helicopters to fly in the necessary capital, supplies and labour to support a project and just as easily fly the resources and the benefits out of the community, no wealth is generated locally. And where there are worker camps to fill gaps in skilled labour, there are higher instances of missing and murdered indigenous women (MMIW).

An equitable and sustainable mining and resource industry requires good faith in the consultative process, clearer jurisdictional and regulatory guidelines and an approach to industry that promotes positive outcomes without sacrificing economic prosperity, the natural environment, and the community.

Instead of exploiting a northern location and its resources, developers are best served when they promote collaboration and engagement, and succeed when backed by the government to ensure they have the information, infrastructure and resources necessary to build relationships with First Nations’ communities that can be mutually beneficial.

It is true that the costs of doing business up north are higher and more effort is required to sustainably develop the deposits that are there, but through the entire supply chain, exploration, production and transportation to markets, it is important that any investment brings long-term prosperity and benefit to Canada and northern communities instead of serving as a temporary boost to the GDP.

Innovation will also play a role in the sustainability of mining and resource extraction provincially and Canada-wide in terms of the new technologies, products and approaches that can be developed to address changing market conditions. Norway has proven to be a bright example of how government-led innovation, new technology and modern thinking can result in a profitable and sustainable resource industry.

Only companies with sufficient capital can undertake riskier exploration activities and have the innovative capacity to address the new challenges that emerge when tapping into existing mines, but all companies have the capacity to consult and ensure that projects are developed sustainably, in accordance with human and environmental rights and in compliance with treaty obligations.

Over the next decade, the Canadian government anticipates that there will be upwards of 600 major resource development projects, which means great effort must be taken to ensure that high costs, low prices, jurisdictional challenges, relationship building, innovation and other environmental and technical barriers won’t stand in the way of prosperity and wealth generation for all project stakeholders.

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Mining companies, oil and gas, forestry and other resource industries are changing their business practices in positive ways. Corporate Social Responsibility (CSR), also known as corporate citizenship, sustainable development, and corporate accountability, is today an integral part of the DNA of many companies.

More than just a buzzword, CSR is woven into the fabric of today’s codes of business conduct and ethics. Self-regulating, CSR demonstrates to the company, to investors and stakeholders, and to the public that the business balances its own needs, such as profitability and growth, while aligning itself with society’s humanitarian, economic, and environmental needs.

Much more than just ‘giving back to the community,’ being an upstanding corporate citizen benefits the company through investment, increasing brand awareness, positivity and greater camaraderie in the workplace, enhanced community involvement, volunteerism, donations of money or product, and being more connected to society.

In fact, the subject of corporate social responsibility is so prominent today that it is frequently a cover story in major business publications including CR and its annual 100 Best Corporate Citizens list.

Resource sector responsibilities
Ranked on the list of leading corporate citizens are many well-known entities, including global insulation fiberglass and roofing manufacturer Owens Corning, American multinational technology company Intel Corp., and consumer food company General Mills, Inc.

Along with these companies are others in the resource sector including Sempra Energy, Xcel Energy, and NRG Energy, Inc. With carefully weighted scoring, factors considered for the 100 Best Corporate Citizens list include human rights, governance, financial, ISS ESG corporate ranking (an arm of Institutional Shareholder Services Inc. and a leading provider of social, environmental, and governance solutions), climate change, and other critical areas.

Not to be outdone, resource-based businesses like mining, petroleum, and logging are becoming more socially and environmentally conscious, and embracing green initiatives. From saving rapidly dwindling resources such as water to cutting costs and reducing materials, the truth is that going green also has its benefits for companies, both internally and externally, from the perspective of shareholders and the public.

In the pulp and paper industry, one of the long-time environmental stewards is Domtar. With its roots going back over 170 years to its founding in Britain, the company has a lengthy history of green initiatives. In the past decade it has achieved an impressive 18 percent reduction in greenhouse gas (GHG), and in the past seven years an 18 percent reduction in waste products diverted to landfill.

In its latest Sustainability Report A Better Future Together (2019), the company outlined its commitment to responsibility, engagement and efficiency, including sourcing wood responsibly, and “having a positive social and economic impact in our communities.”

It has also reduced its environmental impact by fueling mills with renewable energy, and by recycling and using by-products “from the manufacturing of fiber-based products.” The less waste generated, the better.

Breaking the plastic cycle
In the field of packaging, AptarGroup, Inc. is an industry leader in sustainability. Known worldwide for its beauty and home, food and beverage, and pharma and food packaging products, the company is behind lines of fragrance pumps, lotion dispensers, aerosol and bag-on valves, and other related items.

Committed to social, economic and environmental sustainability, AptarGroup’s Corporate Sustainability Report quoted company President and Chief Executive Officer Stephan Tanda, Aptar as saying, “We cannot afford to sit idle. We must address the plastic pollution problem and sustainability at large.”

Keeping waste to a minimum, the AptarGroup implements a sustained Landfill Free Program. Initiated in 2015, the program – based on the Zero Waste International Alliance (ZWIA) scheme – is validated through a third party, and demonstrates a minimum of 90 percent of waste being reused, or recycled.

Working toward landfill free certifications, ISO 14001 and ISO 500001, the company proudly displays its Aptar Sustainability Certifications on its website at https://www.aptar.com/sites/default/files/files/Sustainability%20Certifications.pdf.

As a corporate response to how the world views, uses and reuses plastic products, the company signed the New Plastics Economy Global Commitment early last year.

With over 250 signatories representing 20 per cent of plastics produced worldwide, the Commitment is aimed at eliminating unnecessary plastic products, and undertaking innovation that will see plastic “safely reused, recycled or composited.” It is also an undertaking to “circulate used plastic to keep it in the economy and out of the environment.”

Along with AptarGroup and Domtar, other industry leaders in the green arena include ConocoPhillips.

Bringing on biodiversity
A U.S.-based multinational energy company, ConocoPhillips created a five-year Biodiversity Action Plan in 2013 to maintain the health of the ecosystem, including at-risk habitats, and humans.

“We work to understand and mitigate our potential impact on biodiversity for global operations located across a diverse set of ecosystems,” says the company on its website. “Each business unit and major project is responsible for understanding and managing local biodiversity risks and potential cumulative effects through the life cycle of our assets.”

Integrating sustainability into its day-to-day operations, the company remains a leader in reducing the environmental impact of its operations, and more, including human rights, adopting a carbon strategy, developing its “first large-scale produced water reuse project,” and developing Biodiversity Offset Guidelines.

Founded almost 100 years ago, worldwide international oilfield services giant Schlumberger continues developing technologies benefiting the environment.

Addressing global stewardship issues including environmental performance, material issues, advancing technology and environmental engagement, the company’s initiatives include aligning with the United Nations Sustainable Development Goals (UN SDGs) to reduce its impact on the environment and encourage technological development.

Creating policies addressing biodiversity “to eliminate, minimize, mitigate, and manage significant ecosystem or biodiversity impacts,” Schlumberger also manages environmental risk, and undergoes third-party audits of its environmental, safety and health data. This includes capturing waste carbon through the Schlumberger Carcon Services, which is active in dozens of carbon capture and storage (CCS) projects globally.

Reduce, reuse, recycle
Long considered one of the biggest polluters, the mining sector is making big changes worldwide to benefit the environment and, hopefully, improve its image.

Years ago, many believed that resources were limitless. That’s no longer the case. Once considered abundant, water is now considered precious. One of the companies leading the way in water and air treatment, waste recovery and zero liquid discharge is Condorchem Envitech. A worldwide environmental engineering firm, Condorchem Envitech works with industries, optimizing their water use through treatment before discharge, or reuse via Zero Liquid Discharge.

A massive consumer of water for its operations, the mining sector used Zero Liquid Discharge techniques such as crystallization and vacuum evaporation to save the cost of disposal. Instead of being dumped, treated water from mine sites can be used for purposes such as livestock watering and industrial applications.

Another way the resource sector is going green is through reclamation. Once the surface mining process is completed, reclamation efforts – including stable soil and planting trees and grasses – are initiated, bringing the land back to its previous state. Worldwide, once barren-looking former mining areas have been transformed through reclamation into farmland, wetlands, forests, public parks, and even golf courses for generations to enjoy.

According to the National Mining Association, a Washington D.C.-based trade organization, over 2.8 million acres of once-mined land has been reclaimed across America since 1978.

Other ways the resource sector is going green is by making the switch to energy-efficient diesel-powered and electric vehicles. By using cleaner fuels and rechargeable batteries, harmful carbon emissions are greatly reduced.

Through forward-thinking resource sector companies putting environmental practices into place, the future of the planet will be cleaner… and a lot greener.

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