sustaining global water supplies

Managing Water Use

Water sustains life on earth, and access to clean water is essential to economic development. The majority of global human health issues are linked to poor hygiene and the lack of safe drinking water. About 1.1 billion people in developing countries are estimated to lack adequate access to clean water, while 2.6 billion lack access to basic sanitation.

On a global basis, industry accounts for 23 percent of water withdrawn from the environment for human use. The largest water consumer within industry is the power generation sector due to its needs for cooling water. The refining and petrochemicals industries also use water for cooling as well as within the chemical processes themselves.

Both developed and developing nations are increasingly faced with issues of water scarcity and reduced water quality. Access to clean water vitally affects the health of people and the ability of businesses to operate around the world. Businesses that create strategies to effectively respond to this challenge will also be able to better manage operating costs in the future. Approaches include developing new technologies and increasing operational efficiency to improve water use in operations.

To address this growing global concern, we conducted a water survey in 2006 to identify areas in which we operate where water is a potentially scarce resource and to better understand our operations’ water use patterns. Water is essential in the production and processing of oil and gas, in terms of both technical and safety issues. ExxonMobil is actively engaged in managing water use in our operations around the world. We track our water use at facilities and understand its significance at the global level. Where water scarcity is a potential issue, we consider opportunities to reduce consumption.

ExxonMobil addresses water use the same way we evaluate the implications of any other potential environmental impact associated with our operations. This is consistent with our risk assessment approach, which ensures that environmental improvement opportunities are identified and implemented. Particularly where water scarcity is a potential problem, our Environmental Aspects Guide helps us develop appropriate mitigation measures for our operations.

ExxonMobil Development Company developed an Environmental Standard for water management, which requires major upstream projects to meet specific criteria for discharges and consumption. The Standard establishes project planning and design requirements for major upstream projects to reduce unnecessary usage of water resources — both surface and groundwaters.

ExxonMobil operations around the world integrate water improvement targets in their respective Environmental Business Planning efforts. Our approaches include technological and operational innovations as well as strategic community investments to enhance water use efficiency and reduce water quality deterioration. Where appropriate, activities include on-site water reuse, purchase of gray water (treated wastewater) for use as process water, and enhancements in processes to decrease water needs.

Technological Innovation. As part of an upcoming capacity expansion at our Singapore chemical plant, we will be installing innovative wastewater treatment technology to reduce the impact of the expansion on water use. Unlike a traditional wastewater treatment plant, this technology produces high-quality water that can be reused, thus reducing overall water demands as well as the generation of sludge that needs disposal. The design targets a reduction in water use of 1.7 million to 2.2 million cubic meters per year, which would offset up to 15 percent of the increased water consumption associated with the expansion.

Operational Innovation. At the Cold Lake operation of our Canadian affiliate, Imperial Oil Limited, water is used to generate steam, which is injected into the reservoir to heat the viscous hydrocarbon so that it can be recovered. Due to the large volume requirements for steam, specialized techniques were developed for recycling water produced with hydrocarbon. Nearly all produced water is recycled, thus reducing the amount of water needed to about one-tenth of the amount required previously. The operation recycles about 98 percent of the water produced during oil recovery operations. Imperial Oil Limited also developed the use of brackish (saline) water as an alternative water supply. This nonpotable water alternative is used during periods of high water demand and allows the operation to inject more steam without increasing its need for fresh water.

Across our Australian sites, we implemented measures to reduce water consumption. In some cases, we also created water use awareness campaigns to educate surrounding communities about our water-saving initiatives. While each site approached the problem differently, our major Australian facilities established Water Conservation Teams to identify opportunities for water savings and implemented water conservation training for employees and contractors on-site. Because of this initiative, water reduction projects are already demonstrating great results, with some sites reducing water use by up to 50 percent. For example, water use at our Longford site decreased to 3000 cubic meters a day in 2006, representing a 40-percent reduction over 2001. Water use at Long Island Point in 2006 was the lowest on record, and in 2007 the site further reduced its water use by 33 percent — equivalent to the average annual water use of approximately 350 households.

At our Slagen refinery in Norway, we started using otherwise unusable groundwater instead of fresh water in our desalter operations. This represents approximately 25 percent of our total water intake. As a result, we reduced our freshwater intake by approximately 200,000 cubic meters per year.

Strategic Community Investments. In 2007, we supported a project in eastern Thailand focused on preserving sensitive rainforest and mangrove areas, and providing sufficient water supplies to support surrounding agricultural and community use. ExxonMobil constructed 80 check dams of local materials over an area of more than 2000 hectares. These dams are designed to slow water flow along steep slopes, which also reduces top soil nutrient loss and prevents wildfires due to increased humidity. Communities assisted with the construction of the dams and now ensure their maintenance. As a result, 11,000 community members benefit directly from adequate water supplies and indirectly from reduced topsoil nutrient loss and increased biodiversity.