Oil leakage at the Frade basin in Brazil: notes on contingence plan.

Brazilian path towards the consolidation of domestic oil industry imposes proportional social and environmental responsibilities. This relation holds due to the embedded risks of the business that is commonly associated to major environmental accidents and increasing operational difficulties.

In general, risk management is resumed in contingent plans developed by industry and regulated by government. Regarding the oil sector, international experiences have defined among other initiatives redundancy mechanisms whenever setting contingent plans in order to avoid unexpected failures.

The contingence plan is by nature a preventive instrument designed over principles of sustainability and formulated according to feasible scenarios. Therefore, a consistent plan depends on variables as robustness, strategic planning and the capacity of industry and government to quickly and effectively address the eventual occurrence of accidents in vulnerable areas.

The relevance of a contingence plan varies between sectors depending on the associated risks. The oil drill and extraction is by nature a top ranked risky business that is particularly latent when the extraction occurs in sensible ecosystems or in conditions of operational uncertainty as is the case of Brazil where oil main reserves lay down at the bottom of the Atlantic Ocean.

Since the 1980’s an idea of setting a contingence plan is being discussed in Brazil and a draft of a national contingent plan was finally passed in 2000 through the law 9.996/2000. However, efforts carried out were received with skepticism by specialists and has never been regulated by government. After years of inaction the national contingence plan was finally put under probation in October 2011 when a major oil leakage was identified at the Frade oil reserve, located in the coastal area of the southeast region. The open up of the contingence plan revealed an obsolete and bureaucratic document, inappropriate to cope with the current challenges of deep waters oil drilling. Among its several weaknesses are included the limited duty assigned to the state including the absence of preventive policies. It also misses the definition of responsibilities, a fundamental component of any managerial framework embodied in a contingent plan. Analysts have also criticized the limited boundaries of the penalties defined in the law that is way below the damaged costs usually associated to oil leakage.

After the identification of the fragilities of the national contingent plan, a new document exclusively focused on the oil sector is being formulated under the request of the Brazilian president. A first version of the document formulated according to the current demands of the emerging oil sector is scheduled to be released by the first half of 2012.

Transformations are taking place at Jardim Gramacho, the set of the Waste Land Documentary.

Transformations are taking place at Jardim Gramacho, the set of the Waste Land Documentary.

“When you see yourself as a garbage picker you see yourself as a garbage. We are recycling pickers and for this reason we created the association of pickers of Jardim Gramacho. Recycling a pet bottle means  to make it goes back to its origin and it starts here.”

Brazil is a world leader recycler of Pet bottles (55.6%) and Aluminium cans (98.2%).

Notes on urbanization issues 1: people relocation and the Indonesian transmigration program.

The presence of homeless and other categories of
habitants living at risk is a major concern for policy makers and
public authorities anywhere. The subject is not particularly new and references
about the theme date back to old societies facing rapid urbanization process. In the Rome empire the homeless population was considered a symptom of decline, poverty and social degradation. In the overpopulated London of the Victorian Era the growing number of people living in slum houses with poor sanity conditions and numerous homeless
families were related to ramping criminality records and devastating health diseases.

As in the ancient times, modern societies have relied upon several
mechanisms to deal with homeless and populations at risk.
The approach differs between countries depending on variables as the form
of government, the social appeal, the regulatory framework and the political will. In general, it might be expected that the pressure increases in large
urban areas where concerns on security issues and resources competition are
more latent. It is also from these regions that comes some of most important
examples of public policies addressing the issue.

Evidences from the developing world are particularly remarkable given the magnitude of the problem in most urban areas. In this context the efforts carried out by Indonesia are worthy of attention. The focus on Indonesia reflects the extensive experience of this country in the theme. Among others initiatives promoted by Indonesian authorities the transmigration program is a reference. The program was introduced by the Dutch colonizers and afterwards adapted to attend current demand of Indonesian society. In a broad sense the Indonesian transmigration program could be defined as an instrument to balance population density by transferring homeless from densely populated cities to less populated and labor demanding regions, usually located in remote areas of the country.

Supporters of the transmigration program rely on
arguments as the distribution of land and opportunity to homeless populations, the transfer of laborforce to attend local demands and to develop isolated areas. Furthermore, policy makers have sistematically sustained the usage of transmigration as a mechanism to reinforce the sovereignty of the country over remote areas usually rich in natural resources.

Despite of social gains achieved in the course of over one century, unsolved issues about the transmigration program persist. A recurrent
complaint is the refusal by aboriginal populations to accept the degradation of
local culture in favor of a so called “javanization” of the country.
Recently, concerns about deforestation surrounding the transmigration sites
have also become object of critics by nationals and the international community.

Controversies observed in Indonesia do not differ from reports of others well known policies adopted elsewhere. In summary it reveals the immense challenge posed to policy makers and public authorities engaged in the effort to promote better social and economic standards in urban areas.

Dividends and challenges of oil self-sufficiency in Brazil.

The oil and gas industry in Brazil has experienced remarkable achievements in the last decade lead by effective long term investments in prospection capacity and pragmatic management efforts. The self-sufficiency in oil production announced in 2006 was one of most outstanding result of these initiatives. The event allowed the interruption of the depence on oil imports that has historical constrained the country’s long term planning capacity.

The self-sufficiency was followed by successive announcements of new oil reserves, mostly at the off-shores of the southeast region, an area known as pre-salt layer. For example, the finding of the Tupi oil field in 2007 was considered the largest oil reserve discovery in the last 30 years and definitely placed the Brazil in the international map of oil producer. In few years Brazil would become a preferential destination for international investments in the sector.

The consolidation of the oil sector as one of most promising economic activity has also triggered transformations in several segments of the Brazilian society. Among others, it is the discussion about the usage and distribution of oil dividends the most controversial issue currently under debate. Within this topic is the quarrel on royalties distribution that has contra-posed oil-producing states and other regions exposing fragilities in the stability of the Brazilian federation and opening a troublesome debate about the costs and dividends of mineral resources exploration.

Climate change as a trigger to industrial trends: benefits and implications.

While scientists struggle to provide robust evidences about the human weight on the climate change phenomenon the industry sector steps sharply to use the theme as a commercial appeal. The rationale behind industry strategy is simple. First, the sense or urgency within the discussions on climate change operates as both stimulus to the premature shortening of devices’ life cycle and as an inductor for the development of better energy efficient and lower emission devices. Second, industries from several sectors answer this demand gap by flooding the market with green labeled products.

This dynamic produces positive and negative effects. Among the positive results is the noticeable progress in the development of environment friendly technologies that ultimately contributes to lowering environmental pressure. The negative side effects include the growth in consumerism behavior that in some level might jeopardize the expected environmental dividends since the excessive quantity of new goods would in some degree overcome the marginal gains of the products substitution. Another major negative consequence is the unprecedented record in waste generation, an issue hard to measure and that has been relegated to a secondary status in the current environment debate.

A medieval village, its two billion years bedrock and a high technology nuclear waste repository in Sweden.

Forsmark is a XIV century village located in one of most beautiful spots of the Sweden side of the Baltic sea, 150km from Stockholm and making maritime border with Finland. Despite it’s small dimensions the village has a historical importance to Sweden and in some extent to Europe due to the rich underground iron mines that once was one of most important sources of raw material to the production of weapons in the continent. Our guide in an expedition to Forsmark reminds us that in one of several wars in the region, the Russia forces invaded Forsmark and burned all buildings, except the local church that was used as stable to horses.

After the last European great war the village experienced decades of relative stagnancy until the 1970’s when Forsmark was entirely purchased by the Vattenfall Group, a major European energy company. This time, rather than export of minerals the village became one of the main producer of electricity from nuclear fission in Sweden with the capacity to supply 15-20% of total Sweden’s energy demand yearly. Besides, the village became importer of radioactive fuel waste from Sweden’s nuclear power plants and other minor nuclear fuel consumers as hospitals and research institutes.

Building a repository of nuclear waste with the dimensions projected to Forsmark was possible due to an estimated 2 billion years bedrock that lies under the Baltic sea. According to the technical notes provided by the Swedish Nuclear Fuel and Waste Management Co (SKB) this massive rock is an exceptional nature work located in an area practically free of earthquakes and stable tidal changes. Forsmark’s bedrock was reshaped to become a final radioactive waste repository and waste deposited in the bedrock are expected to stay there for at least 100 thousand years.

The repository reminds a giant shelf with four rock chambers and a silo. Deepest areas reserved to high-level radioactive waste and upper parts used to short-lived waste. We visited the upper part, located 50 meters bellow the bottom of the Baltic sea. Temperature in the place was 14C, a young man guiding us displayed a relaxed explanation of the repository including jokes followed by laughs echoing in the dark tunnels. The conditions however was everything but relaxing, drops of water failing from the walls reminded us we were bellow the sea. The guide explained that the rock is one of most dry bedrock in earth what means that water leakage from the ocean did not represent a risk. According to him that drops were filtered for hundred thousands years until cross the thick layer of the massive rock that separate the ocean from the tunnel.

Visit was fast and impressive. First due to security reasons and to minimize any possible effect of exposure to radiation. Impressive due to the human capacity to develop such magnificent engineer project that in some degree minimizes the concerns of nuclear waste storage.

CNN video on the Forsmark Radioactive Waste Repository

Notes on the relation between labor productivity, work regulation and environment pressure in developing countries.

Productivity is a notorious determinant of competitiveness, essential for both national development and residents welfare. Thus it is not surprising that organizations address great effort towards the development of procedures and technologies that allow increment in the relation of output per employee.

However, efforts to increment production, profit and productivity may generate conflicts between employers and workers that in most cases justify state intervention resumed in legislation and regulatory mechanisms.

When defining the limits of employer-employee relation, governments deal with a complex interaction of interests that might, in some cases, affect the labor productivity and result in several policy implications. Among others consequences researchers have observed the potential spillover effect of labor productivity on environment justifying that productivity will ultimately reflect on resources conservancy practices.

Studies from China provide remarkable examples on the spillover effects of labor productivity over environment conservation policies. There, gains in workers productivity are taken as important determinant of successive records in energy intensity improvement in the last 4 decades. Productivity increment in China is also associated to lower pressure over public services, waste reduction and rational usage of natural resources.

Well designed policies that balance labor well-being and employers ambitious without jeopardizing productivity levels are the ideal however it is not the main set available out there. In most developing countries labor regulation has posed significant constraints on workers productivity. This is the case for most part of Latin America where current legislation on work relations, formulated in the first half of the XIX century, are in many cases contradictory with productivity oriented efforts. The limitations to establish flexible labor relations that would include inceptive schemes to increase productivity and the stability assigned to most holders of government positions are some examples of how pernicious the legislation may be to productivity standards in these countries.

Even though poor productivity levels observed in developing economies are not sole consequence of limitations in work legislation this factor must not be neglected by policy makers, including those engaged in environment protection efforts.

Thus, in a context of necessary improvement in the competitiveness of nations and urgent expectations for the decoupling between economic growth and environmental pressure the design of labor regulation that includes incentives to productivity increment is fundamental. This topic must be included in the current discussion on labor regulation reform being carried out in developing nations that are trying to improve the competitiveness of their products while respecting for the posed environmental constraints.

Energy saving policies in China: brief notes

Developing countries in general and China in particular have followed different routes towards emission reduction targets. In China, solutions are usually developed within technology intensive schemes, remarkably those related to efficiency in productivity and energy usage.

Systematic improvement in energy intensity is a noticeable evidence of Chinese efforts. To give an idea, the country reduced the energy intensity (ratio of energy consumption and national GDP) in around 800% in the last four decades.

And advances are promoted in a continued fashion. In my recent, and brief, stop in Beijing I was amazed with the number of private companies advertisements on the theme of energy saving applications and solutions for businesses operating in the country. It is evident the focus on energy savings as an instrument of cost reduction being the environmental appeal presented as a welcome side benefit.

From any perspective proposals displayed by private companies are impressive. Some solutions suggest immediate reduction in electricity usage in the order of 30-40%. Indeed, efforts carried out by Chinese organizations and supported by government are promoting a fast development of the green services that in the next few years will compete with best solutions offered by companies from the developed world.

Raizen: Ethanol to the world.

Every year, between November and March ethanol becomes a disputed topic between Brazilians. Usually, the discussion goes around the well-known effects of shortage in fuel supply, consequence of seasonality production of sugar cane. The consequences follow the general principles underlying the trends in normal commodities in any economy – lower supply results in higher prices and less consumption. This time of year consumers exercises with more frequency the right to decide between which fuel to purchase – ethanol or gasohol (gasohol refers to the blend of gasoline and ethanol commercialized in Brazil as alternative to pure ethanol).

This year another topic on ethanol became hot issue. It refers to the launch of the Raiz Energia (translated to English it would be something like “Energy Root”) or Raizen. Raizen is the result of a Joint Venture between Royal Dutch Shell and the Brazilian Cosan S.A.

You might ask “Shell and Who else”? Yes, everyone knows Shell, one of multiple Dutch world brands, but who is Cosan? If you also are not familiar, don’t get depressed, even Brazilians don’t know this company that well and prefer to focus their attention on the final products of Cosan – ethanol, sugar or the co-generated electricity. Cosan is behind several other products (e.g. lubricants, logistics) and brands (e.g. Esso, Mobil, Uniao). The company was founded in 1936 in Piracicaba and is one of the supporters of the extraordinary expansion of sugarcane culture in the State of Sao Paulo in the 1970’s and 1980’s and the extensive professionalization of the sector in the following years. Today the company runs 23 production facilities throughout Brazil, operates 4 ethanol refineries and 2 port terminals (http://www.cosan.com.br).

Raizen born as the one of the top five companies in total revenues in Brazil (the second largest energy company after the Brazilian oil Company, Petrobras). According to Raizen estimation, the new company will be responsible for the production of over 2.2 billion liters of ethanol per year to supply the domestic and international markets. This statement is relevant for the quantity of liters (approximately 15% of total hydrous ethanol consumed in Brazil in 2010. Source: ANP) and also for the target on international markets, a long dream between ethanol producers and government.

http://g1.globo.com/economia/negocios/noticia/2011/02/cosan-e-shell-anunciam-criacao-da-marca-raizen.html

The focus on international market is the backbone of Raizen. In his inaugural speeach the company CEO announced the plan to consolidate ethanol as an international commodity. Another evidence is the fact that several products and services provided locally by Cosan were not included in the portfolio of Raizen.

Experience in all stages of fuel life cycle and powerful lobbying capacity are also some of the main characteristics of the new company. Shell displays a respectable voice between Europeans oil industry and Cosan step towards internationalization is strongly supported by Brazilian government and industry federations. Brazilian authorities stick on the expected dividends of economic and political effects of ethanol industry growth; companies target the gains of providing a fuel with competitive prices and strong environmental appeal to markets heavily dependent on oil.

The launch of Raizen is creating expectations in the international ethanol market. It is worth it to watch the next progresses.

Luciano Freitas

Back to Waste Land (Lixo Extraordinario)

Few weeks ago we laid down some words on the extraordinary Waste Land (Lixo extraordinario), a documentary coproduced by England and Brazil. Now, the movie was just announced as candidate to the Oscar Awards sponsored by the American Academy of Motion Picture Arts and Sciences.

There is no surprise in the nomination and there will be no surprise if the movie get elected as the best documentary of 2010. The reasons for choosing Waste Land goes beyond the quality of the documentary itself – a masterpiece produced along 2 years of extensive work, taking as background a real set where elements of the nature, waste and human beings compose a impressive mosaic of tragedy and beauty (some similarity with the T.S. Eliot masterpiece of same name?!).

Oxala the documentary can be recognized in the Oscar. Oxala the documentary become  an inspiration for an open debate about the destiny of waste management in Brazil and other developing countries.

To get back on earth after such extraordinary nomination please feel invited to watch the current reality of the largest Waste Disposal site (Jardim Gramacho) of Latin America as follows.

Luciano Charlita de Freitas

Tragedy in Rio de Janeiro, nature in rage or negligence?

Tragedy in Rio de Janeiro, nature in rage or negligence?

The heavy rains of mid-summer are part of a natural phenomenon that repeats every year in Brazil. What is uncommon is the intensity of the events that have become more volatile along the years enacting events as the one in Rio de Janeiro, showed to the world this week. The events turn in tragedy when it meets human life in the way and it is absolutely what is happening right now in several regions of the world, including Brazil.

Tragedies of such nature happen with regular frequency in Brazil but there is a peculiarity that differs the country from other nations. Negligence. Authorities and population have successively neglected the signs of nature, the first due to a complicated system of budget and responsibility transfer and several contradictory political  forces; the second due to illegal land occupation and a strange passiveness.

It is already pacified the notion that outstanding manifestation of natural events like the one observed in Rio de Janeiro are intensifying every year. If one observe well the cover page of any responsible news channel in TV or Internet this week will notice the record floods in Australia or the inclement drought in certain parts of South America, Asia and Africa. Brazil would not be different. The question that remains is the weight of natural event on humanitarian lost and, at least in the Brazilian case, it is the smallest part.

Therefore the responsibility falls on the capacity of population and authorities to anticipate the events and as much as possible coordinate preventive measures. Taken the example of Rio de Janeiro (Petropolis, Nova Friburgo) and Australia (Brisbane region) is elucidative.

Both the regions faced record events of flood however the number of deaths in Rio de Janeiro (551 deaths) is more than 50 times higher than the lost in Australia (10 declared deaths). Even though the dimensions of the catastrophe are hard to compare, due to the number of people affected and geological conditions of the site, for example. However, focusing on issues as development, coordinating, monitoring and preventive policies and the reaction of population and authorities in both cases the differences are dramatic. In summary, Rio shows mess and desperate; Brisbane reasoning and coordination.

Spots of reasoning could also be observed in some neighbor cities the Serra da Mantiqueira and Serra do Espinhaco (regions were the tragedy in Rio are concentrated). For instance, in Areal, city few miles far from Nova Friburgo and Petropolis, a public awareness released minutes before the flood allowed people to find a refugee resulting in no human losses.

Today, after the worse part of tragedy populations from Brisbane, Nova Friburgo, Petropolis and surrounding areas are facing a new reality. In Brisbane citizens had communication and electricity reestablished, people are preparing for cleaning, governments are organizing a period of transition and support of several natures are being distributed. In Rio, the shadows still persist, rumors are spread on the gap left by chaotic communication structure, first necessity goods are overpriced and speculation causes general dismal. Displaced people continues in the roads, others return to the ruins.

Further references on the geological conditions of Serra da Mantiqueira and Serra do Espinhaco are available in:

BENITES et al., 2007. Soils associated with rock outcrops in the Brazilian mountain ranges
Mantiqueira and Espinhaço.Revista Brasil. Bot., V.30, n.4, p.569-577, out.-dez. 2007.

Prefeitura de Petropolis.

Prefeitura Municipal de Nova Friburgo.

National Policy for Solid Residuals in Brazil.

Few days ago we posted a interview with Moby produced by Brazilian Tv Channel Globo News. The topic of residuals waste is again a hot issue in the country and now it is a promising step toward the end of open waste (“lixoes”) in the Country. The policy, materialized in the law 12305/2010, was first proposed 21 years ago being neglected due to private and political interests on the maintenance of the traditional open waste disposal.

The policy introduces instruments of enforcement and stimulus to commercial usage of waste. One example among others is the production of energy, recycling and inclusion of communities involved in selective selection of waste. Despite of uncountable benefits of the new policy the benefits attached to sanitation improvement are the most relevant for large parcel of population.

Since the policy includes industrial disposal and recycling process of household devices the policy is also expected to allows the creation of a new segment of business opportunities. The following video link (in Portuguese) presents a overview of current debate on the National policy of solid residuals in Brazil.

[globonews=http://globonews.globo.com/Jornalismo/GN/0,,MUL1609773-17665,00-O+QUE+MUDA+COM+A+NOVA+LEI+DO+LIXO.html]

“99 is not 100”

“99 is not 100”
Just watched an inspiring interview with Moby. He is the brain behind the extraordinary documentary soundtrack recorded in Brazil called “Lixo extraordinario” (“Waste Land”).

The interview is great and the documentary itself is very remarkable. Highlights on Waste Land with english subtitles is available at:

Moby’s interview available at:

http://globonews.globo.com/videos/v/moby-recebe-jorge-pontual-e-a-equipe-do-milenio-em-seu-estudio/1400606/#/programas/Milênio/page/1

Inspiration

Sideriver is a web based discussion forum turned to share and debate well succeed cases of environment protection projects and experiences surrounding us in our daily life.

The name of the blog is based on an ancient practice in Japan called riverside. This environmental friend canal system allows the full integration of communities and surrounding environment. An outstanding experience, inspiring and a great starting point for the expected discussion to be freely shared by us, common people interested in our sustainability and the preservation of environment. Please welcome, get inspired and share with us your views and experiences.