Circular economy practices in the oil and gas industry: A business perspective on sustainable resource management
1 Independent Researcher, UK.
2 Independent Researcher, Houston Texas, USA.
3 Independent Researcher, Texas USA.
4 Independent Researcher, Houston Texas, USA.
Review Article
GSC Advanced Research and Reviews, 2024, 20(03), 267–285.
Article DOI: 10.30574/gscarr.2024.20.3.0353
Publication history:
Received on 14 August 2024; revised on 25 September 2024; accepted on 27 September 2024
Abstract:
The transition to a circular economy represents a transformative shift in how industries manage resources, and the oil and gas sector is increasingly adopting these practices to enhance sustainability. This review explores the integration of circular economy principles into oil and gas operations, focusing on sustainable resource management from a business perspective. The traditional linear model of extraction, use, and disposal often leads to significant waste and environmental degradation. In contrast, a circular economy emphasizes minimizing waste, maximizing resource efficiency, and fostering the continuous use of resources through recycling, reuse, and remanufacturing. Key circular economy practices in the oil and gas industry include waste minimization, resource recovery, and the implementation of closed-loop systems. Companies are investing in technologies that allow for the recovery and reuse of by-products, such as capturing and repurposing flared gases and recycling drilling fluids. Additionally, the adoption of circular supply chains and sustainable procurement practices is becoming more prevalent, ensuring that materials and products are sourced and managed in ways that reduce environmental impact. From a business perspective, circular economy practices offer several advantages. They contribute to cost savings by reducing waste disposal costs and improving resource efficiency. Enhanced resource management can lead to reduced operational risks and compliance with stringent environmental regulations. Furthermore, circular practices can bolster corporate reputation and stakeholder trust, as they demonstrate a commitment to environmental stewardship and sustainability. Despite these benefits, the transition to a circular economy in the oil and gas sector faces challenges, including technological barriers, investment costs, and the need for industry-wide collaboration. However, successful implementation of circular practices can position companies as leaders in sustainability, driving innovation and setting new industry standards. This study highlights the role of circular economy practices in advancing sustainable resource management in the oil and gas industry, offering a comprehensive overview of how these practices align with business objectives and contribute to long-term environmental and economic benefits.
Keywords:
Circular Economy; Oil and Gas; Sustainable Resource Management; Waste Minimization; Resource Recovery; Closed-Loop Systems; Recycling; Business Perspective; Environmental Stewardship; Sustainable Procurement.
Full text article in PDF:
Copyright information:
Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
