THE RECOVERY OF THE REFINING SYSTEM AND THE ENERGY TRANSITION IN VENEZUELA
- COENER
- Apr 13, 2021
- 8 min read
Author: Rómulo Estanga Requena.
THE RECOVERY OF THE REFINING SYSTEM AND THE ENERGY TRANSITION IN VENEZUELA
Caracas, April 9, 2021
The shortage of liquid hydrocarbons in the country caused by the collapse of the national refining park represents a problem that must be solved with high priority. For this reason, in the recovery plans of the national oil industry, emergency plans are planned, among others, with specific actions to overcome the emergency due to the deficit of these products and ensure the reliable, constant and safe supply of hydrocarbons. liquids from the national market.
To date, three options have been identified to meet this demand:
1. The importation of liquid hydrocarbons, while refining in the country can be reactivated, an option originally proposed by a group of oil experts.
2. The manufacture of these products through the reactivation of the existing refining infrastructure, also a proposal from a group of oil experts.
3. Manufacturing through the construction of new refineries, specifically mini-refineries or modular refineries, a proposal from the private company.
The objective of this document is to provide ideas that guide efforts on how to proceed in view of the current crisis in the country, during the emergency phase, as well as in the medium and long term, becoming aware of the new challenges of the near future, the signs of this time, on the changes to protect the planet and the commitment to seek a sustainable and integral development, in view of the worrying warming of the climate system and the pollution of nature.
The document is structured as follows: a) first, the issues that we must acknowledge with social, moral and ethical responsibility regarding the negative effects of the refining activity on the environment and nature are presented in summary; as well as those aspects that represent the challenge of seeking solutions to the problem of climate change; b) Next, an analysis is presented on how to proceed with the options identified to cover the demand for liquid hydrocarbons in the country; and c) finally, the conclusions and recommendations are presented.
1. Recognize with social and moral responsibility the matters that affect the environment and nature as a result of the refining activity and identify some factors that allow us to analyze the options to guide the search for solutions.
1.1. The negative effects of refining activity.
Despite the efforts and the application of good practices and mitigation technologies in the facilities, the processes are not sustainable. A then some of the negative effects mentioned:
1.1.1. Contamination:
- Exposure to atmospheric pollutants, deposits of substances that contribute to the acidification of the soil and water.
- Pollution produced by residues, including hazardous wastes. Most of them not biodegradable. It is worth mentioning that at the end of the production cycle, refinery closures, the capacity to absorb and neutralize residues and wastes has not been developed.
1.1.2. Climate change:
- There is scientific consensus that we are facing a worrisome warming of the climate. In recent decades, this warming has been accompanied by rising sea levels, and it is not difficult not to relate it to the increase in extreme weather events.
- Numerous scientific studies indicate that most of the global warming in recent decades is due to the high concentration of greenhouse gases (CO2, methane, nitrogen oxides and others). By concentrating in the atmosphere, they prevent the heat produced by the sun's rays on the earth's surface from dispersing into space. This has been especially enhanced by the intensive use of fossil fuels.
- In turn, the heating is so effects - bre carbon cycle. Creates a vicious cycle that further aggravates the situation, and that will affect the availability of essential resources such as drinking water, agri production - that of the warmest areas, and cause extin - tion of part of the biodiversity of the planet. The melting of the polar ice and high plains threatens to release high ries - go methane gas, and the decomposition of m - organic frozen teria may further accentuate the emission of carbon dioxide. In turn, the loss of tropical forests makes things worse, since they help mitigate climate change - tico. Carbon dioxide pollution increases the acidity of the oceans and compromises the marine food chain.
- If the current trend continues, this century could witness unprecedented climate change and unprecedented destruction of ecosystems, with dire consequences for all of us.
- Climate change is a global problem with serious environmental, social, economic and political dimensions, and poses one of the main current challenges for humanity. That is why the development of policies has become urgent and imperative so that in the coming years the emission of CO2 and other highly polluting gases is drastically reduced, for example, by replacing the use of fossil fuels and developing clean and renewable energy sources.
1.2. Other factors to consider when analyzing the options:
- It is important to redefine what progress means for the country (and the world), since it is realistic to expect that those who are obsessed with maximum profitability will stop to think about the environmental effects that it will leave to the next generations. A technological and economic development that does not leave a better world and a completely superior quality of life cannot be considered progress. Environmental degradation and human and ethical degradation are inextricably linked.
- The world environment is increasingly sensitive to the environment and the care of nature, where a sincere and painful concern for what is happening with our planet grows, where authentic human development has a moral character and supposes the full respect for the human person, pay attention to the natural world and take into account the nature of each being and their mutual connection in an orderly system.
- The environment is a collective good, everyone's heritage and everyone's responsibility. There is a very consistent scientific consensus that indicates that we are facing the worrying warming of the climate system. If we do not take action to protect it, we are denying the existence of our future generations.
- It is very possible that private interests and very easily the economic interest can prevail over the common good and manipulate the information so that their projects are not affected. It is necessary that there be legal security in the country, to efficiently control corruption and manipulation of information.
2. Analysis of the feasibility of the options:
2.1. Import of hydrocarbons:
- This option in the emergency phase is vital to fully cover the demand required by the national market for liquid hydrocarbons; or partially, if the recovery of the refining activity does not fully cover the market.
- However, it is important to highlight that to ensure the reliability, safety and environmental protection of the supply of these products throughout the country, it will be necessary to restore the storage, distribution and transportation systems, currently mostly deteriorated. This matter has also been considered in the emergency plans that have been designed and mentioned above. It should be noted that the privatization of these activities is fundamental, in view of the general crisis and the development and progress priorities of the country.
2.2. Recovery of the existing refining infrastructure:
- The priority of recovering the country's refining is to supply the fossil fuel requirements for the domestic market, knowing that the existing refining park has been completely damaged: materials, equipment, environment, people, surroundings, etc. This has not only generated a shortage of fuel supply in the country, but also human and economic losses, environmental and social damage, as a result of lack of expertise and corruption.
- Recovering the refining activity, taking advantage of the existing infrastructure, would not generate additional damage to the environment and nature, due to the effect of pollution and impact on the climate. Rather, on the contrary, when carrying out diagnoses and audits on the operational and administrative conditions of the existing infrastructure, the damages that have been committed will be identified in order to take corrective actions and reduce the environmental damage caused by mismanagement, due to the difficulty of fully correcting these damages; and rescue good practices to mitigate the effects on the environment and nature.
- In view of the commitment and responsibility to replace fossil fuels due to the problem of climate change and to develop clean and renewable energy sources, we must be cautious in the refining capacity to recover in the emergency phase. A proposal to evaluate would be to concentrate efforts to recover a deep conversion refining capacity of 300-350 MBD to supply the domestic market, analyzing its integration with the petrochemical sector, for the manufacture of chemical and petrochemical products from refinery streams. , as an alternative to replace and dispose of fossil fuels. It is important to note that to recover the refining activity requires the privatization of the refining business.
2.3. Installation of new refineries: mini or modular refineries:
- It is important to note that the option of building new refining capacity, such as mini refineries or modular refineries, is not convenient for the country, since it would affect the sites where they are built, causing additional damage to the environment, nature and biodiversity. . The cost of ecosystem damage supposes a look beyond the immediate, in the case of loss or serious damage to some species, they could be higher than the benefits. We could be silent witnesses of very serious inequities when it is sought to obtain important benefits by making the rest of humanity pay, present and future, the very high costs of environmental degradation. For this reason, we should ask ourselves how it is possible to intend to build a better future without thinking about the environmental crisis and the suffering of the excluded.
- These refineries in the long term would be obsolete and unused, due to the replacement of fossil fuels, which would represent an undesirable environmental liability.
3. Conclusions and recommendations:
3.1. In the recovery of the national oil, gas, and petrochemical industry, and in the present case, the refining of the country to supply the domestic market, it is necessary to develop plans that are executed efficiently, productively, reliably and safely; Likewise, it must be made aware that these plans will be progressively affected in the medium and long term by the changes that the world is demanding to protect the environment and nature, seeking a sustainable and comprehensive development.
3.2. For the execution of these plans, in addition to legal certainty, a policy that thinks with a broad vision is necessary and that carries out a comprehensive rethinking incorporating in an interdisciplinary dialogue the various factors of the country's energy crisis, in addition to incorporating the challenge and the commitment to protect the planet. That can only be achieved with a political change in Venezuela.
3.3. It will be necessary to import liquid hydrocarbons to meet the demand of the national market, as long as refining cannot be activated through the existing facilities in the country. The installation of new refineries, such as mini-refineries, would not be convenient for the country, in view of the negative effect on the environment and nature, as they are not sustainable projects; and when closing operations due to obsolescence, they would represent undesirable liabilities.
3.4. As long as the refining capacity is not activated, actions should be taken at the national and local level to promote forms of energy saving, forms of production with maximum energy efficiency and the use of natural gas, which would reduce the import of hydrocarbons. liquids.
3.5. There is evidence and reports from the Acad. Ing. Nelson Hernández, who indicate: "Venezuela from the point of view of renewable energy and green hydrogen production has a high potential that is not being exploited." For this reason, it is recommended that public policies be formulated that lead to the individual and collective use of wind and solar energy; promote greater energy efficiency, promote better management of forest and marine resources. To achieve this, the dialogue of various entities is required to promote new national and local policies related to climate change and environmental protection, through new ventures and projects for the generation of clean and renewable energy. In this sense, also the Acad. Ing. Hernández, has prepared and is available a proposal on these policies, which would serve as support for this dialogue; as well as other valuable documents on how to recover the country's energy security.
3.6. Continuity is essential, because policies related to climate change and environmental protection cannot be modified every time the government changes. The results are time consuming and involve immediate costs with effects that cannot be shown within the current government period. For this reason, without pressure from the population and institutions, there will always be resistance to intervene, even more so when there are emergencies to be resolved. It will be necessary to promote a dialogue regarding this matter.
Finally, as members of COENER, a think tank in the energy area, I consider that we are responsible for caring for and protecting our planet and making it habitable for future generations. A crime against nature is a crime against ourselves.
Romulo Estanga Requena.
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