Second Annual Report : August 1997

Report on the Environment

Meeting the challenges

We tap Earth's arteries for the liquid energy which sustains our civilisations. We know that procuring and delivering oil to keep the world alive, alight and in motion, brings risks of pollution. We know that every drop of oil spilt, stains Earth's delicate skin. We are increasing, each year, our efforts, our technology, our experience and skills in reducing or eliminating the risks of pollution.

Oil spills and leakages and related pollution are world problems. South Africa shares them, but we strive for standards of control, vigilance, and state-of-the-art anti-pollution technology which will match the best anywhere.

The challenge is large. About 19 million metric tons of crude oil are imported into South Africa each year. Crude stock is processed at four oil refineries (located in Cape Town, Durban and Sasolburg). Refined product is distributed throughout Southern Africa and marketed through 4 787 retail outlets and more than 80 000 consumer facilities in the country. Sapia members constantly analyse and monitor the potential risks of leakage and spillage from transporting, storing and handling these large volumes of petrol, diesel and paraffin.

Environmental management on an industry-wide scale was organised a generation ago, when locally-based oil companies formed an Oil Industry Environment Committee (OIEC) with a full-time environmental officer. In 1994 Sapia took over the administration of the industry's environmental forum. In June 1995 Mr Anton Moldan was appointed as Environment Adviser. During 1995 the OIEC became an association member of the International Petroleum Industry Environmental Conservation Association. The OIEC currently comprises all Sapia members, together with Sasol and Petronet.

In the year under review notable progress was made across a broad range of environmental issues, with Sapia members taking a pro-active lead in areas as diverse as training, preparedness, and protocols that minimise any risk of pollution. Their drive has heightened vigilance and increased corporate investment in environmental safeguards. This, despite the beguiling argument used in some developing countries, that the national aim should be rapid economic growth regardless of environmental consequences. Sapia members believe that the aims of economic and environmental progress are not mutually exclusive and that environmental management and sustainable economic development need to be closely integrated. They are committed to long-term investments to improve safety, and they use their international connections to ensure they have the resources and technology to meet the best global standards in environmental protection.

Training

In the year under review Sapia trained 102 people in land and marine-based response to oil spills. There are now over 500 people in South Africa who have undergone special training - by far the largest cadre in Africa.

Training is carried out not only with employees of oil companies, but with local authorities and parastatals. During early 1997 training and preparedness was accompanied by practical exercises in Durban Harbour, carried out in collaboration with Portnet. This exercise included representatives from nine other African countries.

Shipping of Oil

There is global concern that aging and sub-standard vessels are being used to ship crude oil on international routes, increasing the risk of spillage at sea. In an effort to eliminate sub-standard tankers operating on international routes, the major oil companies have pooled their vetting resources through the Oil Companies International Marine Forum.

The new Ship Inspection Report System provides information on the condition of vessels available to carry oil as cargo. Portnet subscribes to this system which now operates in South African waters and should further reduce the risk of oil spills. In order to combat oil spills in harbours, the OIEC has provided oil spill response equipment at all South African ports and terminals where loading and unloading occurs.

Land Transportation

To combat oil spills on roads, railways and in depots, 42 oil-spill response trailers have been bought at a cost of R4million. These are ready to be rapidly deployed to the site of any serious oil spill.

This year the oil industry co-operated with the World Wide Fund for Nature (SA) and the National Parks Board to extend this initiative. The latest trailer was funded by the oil industry for deployment in the Knysna area in view of the vulnerability of eco-systems in and around the Knysna Lagoon.

The full network of trailer stations can be switched to a single regional emergency should this be necessary. Trailers are located close to major transport routes not only in South Africa, but also in Botswana, Namibia and Lesotho.

International Links

South Africa's new place in the mainstream of global safety and environmental initiatives was demonstrated in March 1996 when an International Maritime Organisation/Oil Industry seminar was staged in Cape Town. A Global Initiative was launched, bringing together representatives from African governments and oil companies to establish joint contingency plans for oil spills. The Cape Town meeting was attended by 200 delegates from more than 30 African countries. Sapia members now sponsor training and preparedness courses for people from all parts of the continent.

Co-operation and Liaison

The White Paper on Environmental Policy is due to be released in August. Sapia, through Business South Africa, not only co-operated fully in the process of framing it, but remains well ahead of new environmental policy directives. The oil industry co-operates with official bodies in the development of codes of practice, acceptable technical standards and protocols.

For instance, the oil industry is working closely with the Department of Water Affairs and Forestry in the compilation of a "vulnerability index" for storage tanks nation-wide. Once the most vulnerable areas have been mapped, storage facilities at service stations within priority areas will be the first to be tested to ensure that leakage does not occur.

The oil industry is co-operating with the South African Bureau of Standards in developing updated codes of practice for the design and installation of storage tanks in order to minimise leakage risks.

In November the industry sponsored a workshop in Cape Town to examine the appropriateness of the international Risk-Based Correction Action (RBCA) model for South Africa. The RBCA approach has been shown to be extremely effective in ensuring that the clean-up of contaminated soil and ground water takes place to acceptable levels. International computer models are now being adapted to South African circumstances, and clean-up targets can then be identified.

It is evident that the industry has become a leading player in the quest for a regulatory environment which shows greater correlation between level of risk and appropriate remediation goals.

"No quibble" Accountability

Accountability for pollution can involve a number of different players. Close co-operation has been achieved on these matters. Last year Sapia made a commitment that the expertise and resources of its members will be provided for clean-up operations, regardless of who is to blame for any pollution. Where the source of hydrocarbon contamination is unknown, oil companies operating in the vicinity will take joint responsibility and share costs. The system ensures timely remedial action, as disputes over accountability will thus not delay corrective action.

. . . they use their international connections to ensure they have the resources and technology to meet the best global standards in environmental protection.

An example of co-operation with an associated industry is already evident in the ongoing study of ambient air quality. Sapia members, the Ministries of Minerals and Energy and of Environmental Affairs and the Motor Industry are collaborating closely on the jointly-sponsored study to establish the impact of vehicle emissions on air quality. Results from this study have a bearing on many issues, not least the necessity (or otherwise) for legislation to speed up the introduction of catalytic converters.

Sapia members continue to support a University of Cape Town study into the "Brown Haze" phenomenon over the Western Cape Peninsula. The University's Energy Research Institute has not yet reached firm conclusions. However, during the winter of 1996 a locally-based refinery closed for a protracted period, and the brown haze remained - empirical support for the view that numerous sources contribute to the formation of the haze.

Paraffin Safety

Sapia continues its national effort to educate the public to the potential danger posed by improper usage of paraffin. Its members founded and initially contributed more than R3 million to the Paraffin Safety Association of Southern Africa (PASASA) and budgeted a further R5.5million in 1997.

A substantial educational task lies ahead. More than half of all South Africans are dependent on paraffin for cooking, lighting, heating and refrigeration (annual paraffin usage is more than 900 million litres). An estimated 16 000 cases of paraffin poisoning occur annually in South Africa. Children under five are most at risk. The Departments of Health and Minerals and Energy are involved with PASASA in its educational and safety programmes which also involve the distribution of child resistant closures for bottles used for paraffin storage.

Recycling

The recycling of used oil is another area of successful co-operation between Sapia members themselves and other lubricant marketing companies.

The need for such an effort is indicated by sales statistics. Each year about 360 million litres of lubricating oil are sold in South Africa. Up to 60% is consumed or destroyed during usage. This means that about 150 million litres is added annually to the national 'reservoir' of used oil.

This creates a potential source of pollution, especially if there is no obvious alternative to dumping' old oil by irresponsible end-users. Therefore in April 1994 the main lubricant companies launched the ROSE (Recovery of Oil Saves the Environment) Foundation. In 1995 the work of the industry-funded ROSE Foundation was carried forward with the establishment of a nation-wide used oil collection network.

In 1996 further strides were made. A regional network was set up, with storage depots in Krugersdorp, Cape Town and Durban. The CSIR was commissioned to assess the most environmentally acceptable disposal options. These include conversion to furnace fuel, cement kiln incineration, explosive manufacture and re-refining for use in the production of new lubricants.

In 1997 the focus has shifted to the expansion of a national network of collection tanks at service stations and motor workshops. Some 6000 tanks are to be installed. These will be periodically drained and the used oil transported to one of the three storage depots.

So far, R25 million has been invested in the ROSE Foundation project.

Continuing expenditure is inevitable. The cost of collection exceeds income from the sale of used oil. Members of the non-profit making ROSE Foundation make up the shortfall. ROSE is believed to be one of the most advanced organisations of its type anywhere in the world. It currently collects 29 million litres of used oil a year. These volumes are expected to grow substantially in the years to come.

Conclusion

These initiatives confirm the commitment of Sapia members to the cause of environmental protection and safety across a broad front. Closeness to international technology and know-how, and sensitivity to South African needs and issues, enable the major oil companies to make a unique contribution. This is not without costs, but it is a contribution the industry is proud to make.