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GEOGRAPHY

Energy management practices of oil refineries; a case study of Tema oil refinery (TOR)

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Article: 2282492 | Received 15 Feb 2023, Accepted 08 Nov 2023, Published online: 15 Nov 2023

Abstract

This paper assesses the environmental impacts of Tema Oil Refinery (TOR) and assesses the effectiveness of the measures to reduce the environmental footprints of TOR. The study is exploratory with considerations for both qualitative and quantitative research analysis to provide a deeper understanding of how to mitigate the environmental impacts of TOR operations. Fifty respondents were drawn from a target population of 200 staff of the Crude Distillation Unit (CDU), Residual Fluid Catalytic Cracker (RFCC), Power House (Utilities), Wastewater Treatment (WWT), and Movement of Products (MOP) Clusters of the refinery. A simple random sampling approach was used to select respondents from each department. Both descriptive and parametric analyses were conducted to rank the means of the major themes of the research, whereas the Pearson chi-square was applied to assess mitigation measures against efficiency in the management of the environmental impacts of the refinery activities. A management effort at sharpening employees’ knowledge base on the environmental impacts of their refinery activities was apt due to the resultant heightened environmental consciousness of the staff. The majority of the mitigation measures adopted by TOR to address the environmental concerns of their work are bright, especially considering the positive effort in the treatment of wastewater.

PUBLIC INTEREST STATEMENT

This paper investigates how activities of Tema Oil Refinery (TOR) affect the environment and also examines efforts that TOR has applied to reduce the effects of their activities on the environment. Different tools were used to source the inputs of 20 out of the 200 staff of TOR. The study identified that employees of TOR have a depth of knowledge on the environmental impacts of their refinery activities. The impacts of TOR’s activities were found to include the generation of hazardous solid waste that are difficult to dispose, and the pollution of water quality and groundwater storage by chemicals generated during the process of oil exploration and processing. The majority of the mitigation measures adopted by TOR have the potential to address the environmental concerns of their work,

1. Introduction and literature review

One key concern of oil refinery-related environmental impact is damage caused to biodiversity and habitat degradation which adversely undermines the world’s ability to achieve many of the Sustainable Development (SD) goals 3, 6, 7, and 11, that is, good health and well-being, clean water and sanitation, affordable and clean energy, and sustainable cities and communities, respectively (Costanza et al., Citation2016; United Nations Environment Programme, Citation2013). Of particular concern is the difficulty of effectively managing the consolidated amount of pollutant emissions from China, India, and the USA that accounted for 85% of the net increase in emissions in 2018 (IEA, Citation2018). Notwithstanding the challenges associated with the sector, the petroleum sector continues to be one of the world’s largest and most important industries, contributing significantly to economic growth in many countries.

Globally, many economies and infrastructures rely largely on petroleum-based products thus increasing the world’s dependence on oil and gas. Despite a faltering global marketplace and depleting oil supplies, debates on when the world’s oil and gas output will peak appear to strongly show up on many platforms due to the significant contributions of the sector to the global political economy and levels of employment, especially as the sector contributes to at least 10 million employees in the United States (Muspratt, Citation2019). Globally, the oil consumption levels hover around 30 billion barrels each year, with advanced economies accounting for the majority due to expansion in world population and economies, particularly in developing economies where energy consumption could increase to 90% between now and 2035 (Petit, Citation2019). The consumption trend is similar in considerable portions of regional energy utilization; 32% in Europe and Asia, 40% in North America, 41% in Africa, 44% in the Southern, and 53% in the Mideast (Muspratt, Citation2019).

In a developing economy such as Ghana, petroleum products continue to be one of the central focuses of the nation’s economy, driving infrastructure development of the government and the sub-regions (Taherzadeh et al., Citation2021). Besides the massive contributions of petroleum to the nation’s economy and the energy stability of the country, it has been a significant contributor to the employment sector supporting the well-being of workers, and the populace in general (Taherzadeh et al., Citation2021), and in some cases serving as a major contributor to environmental pollution (Sojinu & Ejeromedoghene, Citation2019).

In contributing to the scholarly discourse on petroleum-related environmental pollution, Mariano et al. (Citation2018) suggested that the over 800 different chemicals generated during exploration, manufacturing, and refining are mainly responsible for the majority of environmental pollutants, intensification of the greenhouse gases in the atmosphere, acid rain, decreased water quality, and groundwater pollution. However, figuring out how to make the petroleum industry more responsive to efforts to limit environmental degradation has become a major challenge (Sojinu & Ejeromedoghene, Citation2019). Awareness of the environmental impacts of oil refining contributes positively to the overall efforts to address the challenge (Festus & Ogoegbunam, Citation2015). It could be established that environmental education is a critical tool for tackling issues related to the energy crisis in Nigeria. As such, environmental education needs to be designed to educate and re-orientate people on the implication of the activities of refineries on the environment and also encouraged them to embrace activities directed toward the protection, improvement, management, restoration, and conservation of the Nigerian environment. Adebiyi (Citation2022) argues that measures to control air pollution to protect flora and fauna including human beings should involve establishing as well as imposing environmental protocols in the petroleum refining industry. Adebiyi further opines that the ambient air quality should be managed methodically in developing countries where issues of increased energy demands, industrialization, and overpopulation are undermining efforts to control emissions and reduced air value.

Aside from the potential adverse impacts of petroleum refinery activities on environmental resources, the industry is known to improve community livelihoods through the provision of social and economic support systems, as well as shoring up revenue and foreign reserves of countries associated with petroleum production activities. It is, therefore, apt to argue that the implementation of sustainable environmental policies would provide a critical resource base for social and infrastructural development for many economies including petroleum-producing developing economies (Abudu et al., Citation2022; Arthur & Amo-Fosu, Citation2020; Sojinu & Ejeromedoghene, Citation2019).

A significant number of energy scholarships have argued for the need to incorporate pragmatic policies to address environmental issues (Sojinu & Ejeromedoghene, Citation2019). Some arguments have toed the line between the need for the restoration of public confidence in the oil sector through the use of information technology-driven policies, intelligent control tools, intelligent maintenance programs, as well as organizational reforms and targeted investments in the research and development sectors of the oil industry (Mojarad et al., Citation2018). de Oliveira Soares et al. (Citation2020) are of the view that actions including environmental monitoring and response measures must be implemented to minimize the ecological, economic, and social effects of the spill. As part of efforts to address the trend of externalizing production chains and carbon emissions that pose a major challenge for carbon mitigation by local governments, Chen et al. (Citation2019) recommend the application of a viable solution that would enhance cooperation between cities and their trade partners in low-carbon industries and businesses. For effective energy management in the Middle East and North Africa, Maftouh et al. (Citation2022) have called for more coordinated water and energy management decision in addressing issues related to oil refinery water. Yáñez et al. (Citation2021) in contributing to the debates on the effort to combat the scourge of the environmental impacts of the activities of oil refineries proposed the use of biofuel without major changes in the core activities of the refinery. They envisage that such a measure could result in a consequent reduction in CO2 emissions from 33% to 84% when compared with pure fossil fuels. The results of Yáñez et al. (Citation2019) are contested by other literature, for example, Guedes et al. (Citation2019)’s examination of the largest Brazilian oil refinery identified that the implementation of all mitigation measures had almost no effect on its water balance. The implication was that CO2 abatement in refineries has no significant impact on water demand (no negative trade-off). Suggesting that the water stress in oil refineries should be dealt with through measures not directly linked to CO2 reduction. The growing global concern about the hazardous effects of pollutant emissions and the need to improve sustainability for energy management, especially among the large economies, have called for more research, intergovernmental interventions, and innovative policy strategies (Umar et al., Citation2021). Other literature has provided substantial evidence to prove the significance of adopting and incorporating Environmental Management Systems (EMS) in companies in order to achieve better corporate performance compared to the companies without practicing EMS (Ikram et al., Citation2019). Efforts to incorporate environmental concerns into the activities of the petroleum industry have encountered setbacks including the neglect of the ethical and moral bases of environmental policies for societal good. A study conducted to assess the sustained impact of the activities of local crude oil refineries on their host communities in Nigeria confirmed the high impact of refinery activities on farmlands and fishing areas of the host communities (Bebeteidoh et al., Citation2020).

Similarly, it is worth noting that recent commercial findings of oil and gas in Ghana have raised public awareness about the environmental risks of the extraction, refining, and use of petroleum products (Danso-Boateng, Citation2014). Key among the concerns relate to the leakage of harmful drilling fluids into Ghana’s maritime zones by Kosmos Energy, and earlier spillages into the Gulf of Guinea caused by Tema Oil Refinery (Danso-Boateng, Citation2014). Atupare (Citation2022) states that Tema Oil Refinery recorded two oil spillages into the Chemu Lagoon within a month, causing significant loss of aquatic lives in the Lagoon, including the adverse impact on fishing activities around Tema Newtown and Kpon and release of hydrogen sulphide and other sulfur compounds that could cause both respiratory and skin-related infection. Similarly, Domingo et al. (Citation2020) have identified that human exposure to certain carcinogenic pollutants emitted from petrochemical industries have the potential to increase the incidence of some cancers and cancer mortality. This research is relevant as it attempts to provide workable remedies to minimize the environmental footprints of Tema Oil Refinery. The study specifically identifies the environmental impacts of TOR, analyzes options to address the environmental impacts of TOR, and also assesses the effectiveness of approaches adopted to reduce the environmental footprints of TOR.

2. Methods

According to Saunders et al. (Citation2009), a researcher needs a research philosophy to incorporate significant assumptions to underpin the research. This study adopts the positivism concept to guide the interpretive analysis model. Additionally, the study was explorative with considerations for both qualitative and quantitative research analysis to provide a deeper understanding of how to mitigate the environmental impact of Tema Oil Refinery operations.

TOR’s activities were initially confined to asset transfer to acquire and process crude oil for national consumption with a capacity of 45,000 barrels per stream day (BPSD), and in 2002 an addition of 14,000 barrels per day (b/d) Residual Fluid Catalytic Cracker (Ayo et al., Citation2021). The research design (Creswell & Plano Clark, Citation2007, p. 58) applied to the study was the descriptive and explanatory research designs that helped to describe the impact of TOR’s activities on the environment. As a result, the study employed an inductive analysis strategy that helped to understand the research problems by identifying the issues, which could be clarified in numerous alternative ways (Saunders et al., Citation2007).

For this study, the target population (Burns & Grove, Citation2001:779) was the 200 staff of the departments under the production division of the refinery. The population was categorized under the five departments of the production unit: Crude Distillation Unit (CDU), Residual Fluid Catalytic Cracker (RFCC), Power House (Utilities), Wastewater Treatment (WWT), and Movement of Products (MOP). A sample size (Bujang et al., Citation2018) of 50 respondents was established based on the Cochran formula for calculating sample size. For known population size, the Cochran formula is stated as;

SamplesizeS=Z2×P(1P)e21+(Z2×P(1P)e2N)

Where;

N =  Population size

Z =  Z—score (the % of the confidence level)

e =  Margin of error

P =  standard of deviation

From the mathematical deduction with a known population (N) of 200, a margin of error or confidence interval (e) of 10% = 0.1, Z—score, percentage of confidence level (z) of 90% = 2.576 and a standard of deviation (P) of 10% = 0.1, the sample size was estimated at 50 respondents.

The probability sampling approach (Osuala, Citation2007) was useful in ensuring fair inclusion for members of the population of TOR. Cluster sampling was used to segment the population into subgroups that correlated with the units under the department of study. Subsequently, the simple random sampling approach (Ghauri & Gronhaug, Citation2005) assisted in the selection of the respondents from each cluster. The study used both primary and secondary data tools of data collection (Sapsford & Jupp, Citation2006). These included a literature review part and the use of questionnaires to solicit information from the respondents.

A 5-point Likert scale guided the design of the questionnaire to allow for accurate estimations and to ensure the validity of the viewpoints for data collection (Wilson, Citation2005). Existing reports, journal articles, records, and reports were accessed for secondary data. The secondary data helped to provide a better understanding of the research problem and also provide a standardized framework for designing appropriate questions for data collection.

The Statistical Product and Service Solutions (SPSS) software was used to analyze and make use of data obtained from the field survey. For easy interpretation, data were analyzed by focusing on the themes. Both descriptive and parametric analyses were conducted to rank the means of the major themes of the research, whereas the Pearson chi-square was applied to assess mitigation measures against efficiency in the management of the environmental impacts of the refinery activities.

3. Results and discussions

3.1. Socio-demographic Background of Respondents

The study covered 94% (47) males and a female representation of 6.0% (3). These results tend to confirm the male domination in the departments under production in TOR. The age of respondents was categorized into 24% for 26–35 years, 12% for 46–55 years and the majority 64% for the 36–45 years group. This is a good boost for the productivity of TOR because a more vibrant workforce is important for the oil industries, which sometimes demand an active and young workforce for efficiency. The majority (50%) of the respondents hold a Bachelor’s degree, followed by 26% with a Master’s, and the lowest of 24% for diploma holders. A highly educated workforce as exhibited in the sample is relevant for better performance of employees. This also goes out to support the fact that the engineers at the refinery are well-educated and highly trained. Linked to the level of education is the year of experience which also showed that the majority (58%) of respondents had worked 6–10 years. Those with over 10 years of work experience represented 22% of the workforce, 18% for 1–5 years 2% for less than a year’s work experience.

3.2. Impacts of Refinery Activities at TOR on the Environment

An examination of the impacts of the refinery activities ranked the issue of “refinery effluents such as wastewater, spend chemicals and acid gases” (mean = 3.92, SD = 1.085) as major activities adversely impacting on the environment and the lowest for ‘The refinery pollutes the surrounding environment by generating hazardous solid wastes that are difficult both to treat and to dispose of as the lowest (mean = 2.76, SD = 1.091). The result is consistent with Mariano et al. (Citation2018) who also found out that the majority of the chemicals generated during oil exploration and processing impact water quality and groundwater. In all, six out of the eight indicators had mean scores above 3.0 (Table ). This shows that there is enough awareness of the major activities of TOR impacting the environment. As indicated in some literature such as Festus and Ogoegbunam (Citation2015), knowledge about environmental concerns of the activities of the industry is a major step towards addressing the issues concerned. Management of oil refineries should, therefore, make a conscious effort to provide their employees with the requisite knowledge on the adverse implications of the refinery activities since this effort could be an impetus to effective management of these impacts.

Table 1. Impacts of refinery activities at TOR on the environment

3.3. Measures to Address EE of Refinery Activities of TOR

Several measures have been adopted by the management of the refinery to address the refinery activities that tend to have adverse implications on the environment. Key among them are itemized under Table . Respondents are of the view that issues such as “the provision of good drainage systems, wastewater treating plant (WWTP) coupled with wastewater recycling plant (WWRP) will help zero effluent dumped into water bodies which minimize water pollution hazards” is ranked highest (mean = 4.08, SD = 0.853) for TOR. Our results corroborate that of Maftouh et al. (Citation2022) that make an argument for an effective water management of oil refineries as a tool for effective energy management. In a related development is the call of de Oliveira Soares et al. (Citation2020) for an effective restructuring and monitoring of the oil production process to ensure viable externalization of the production chains and carbon emissions. Also, it was rather refreshing that the management of the refinery has adopted several pragmatic measures to address the environmental concerns of their refinery activities. However, it may be important to critically evaluate such mitigation measures because Guedes et al. (Citation2019) caution against the use of CO2 abatement in refineries due to the minimal impact such a measure could have on ensuing prudent environmental management of refinery activities. The lowest ranked measure, however, related to “To control the impacts of refinery activities, the wastewater treating unit needs to be efficient and operational” (mean = 2.06, SD = 1.5076). In all, 10 out of 14 variables scored above the mean average of 3.0 (Table ).

Table 2. Measures to address EE of refinery activities of TOR

3.4. Overview of Energy Efficiency (EE) Practices of TOR

On the ranking of the overview of EE practices at TOR, it came out that knowledge of petroleum products is very crucial in economic growth (Mean = 4.36, SD 0.805) ranked 1st as against the total production capacity of TOR cannot be achieved (Mean = 2.36, SD = 1.382). Meanwhile, it is noteworthy and commendable that the majority (8 out of 12) of the indicators of the general overview of EE practices at TOR had mean scores of above 3.0 (Table ).

Table 3. General overview of EE practices at TOR

3.5. The Effectiveness of the Measures to Address the Environmental Impacts of the Refinery Activities at TOR

An examination of the effectiveness of the measures applied by TOR to address the environmental concerns of its refinery activities ranked the measures put in place by the refinery to address soil or land pollution hazards have been effective’ (mean = 2.90, SD = 0.995) first and fourth (last) for “All the measures that are in place currently by the refinery to address these environmental impacts of refinery activities have been effective” (mean = 2.64, SD = 1.025) (Table ). The outcome of the mitigation measures applied by TOR to address the environmental challenges of the refinery activities is reassuring considering the recorded incidence of oil spillage in the Gulf of Guinea by TOR, and Ghana’s maritime zones by Cosmos Energy (Danso-Boateng Citation2014). The approach of TOR to address environmental impacts of their activities is consistent with Adebiyi (Citation2022) who argued that measures to control air pollution to protect flora and fauna including human beings should consider applying effective environmental protocols in the petroleum refining industry. However, it is important to report that no variable/measure achieved a mean score of 3, a major blow to the effectiveness of the measures employed to address the environmental concerns of the activities of TOR.

Table 4. Effectiveness of the measure to address the impacts of refinery activities of TOR on the environment

3.6. Measures in place to address EE of refinery activities against the effectiveness of the measures to address EE of TOR’s refinery activities (Pearson chi-square)

The study was expanded to assess the effectiveness of the measures applied to address the environmental effects of the refinery activities of TOR. Consequently, several hypotheses were tested to assess the relationship between the company’s applied interventions (under Table ) and the effectiveness of the applied measures in Table . The results as displayed in Table show that the majority of the tests did not show a significance rating for the parameters assessed. This outcome places much emphasis on the need to reecho Guedes et al. (Citation2020)

s examination of the Brazilian Oil refinery that cautioned against raising hopes on mitigation measures that adopt CO2 abatement due to its no effect on water balance. For the 14 major points of assessment (interventions) only 6 showed some isolated significant relationships. For example, items under B.C. E, M, and N registered some isolated cases of significant relationships. All significant relationships went for ’All the measures that are in place currently by the refinery to address these environmental impacts of refinery activities have been effective

except for. Item M where significance relationship (signf. = 0.042) was reported for ‘The measures put in place by the refinery to address water pollution hazards have been effective’.

Table 5. Measures in place to address EE of refinery activities by effectiveness of the measures in place to address TOR’s refinery activities

These results, therefore, tend to confirm the need to reassess the mitigation measures of TOR because the majority of interventions established by the management of the refinery to address the impacts of their refinery activities on air, water, and land/soil have failed to produce the needed effective outcomes.

4. Conclusions

Refinery activities have implications for the environment including the risk of polluting waterbodies and the quality of the air we breathe but with marginal impact on the quality of the soil. The impacts of TOR’s activities on the environment include the generation of hazardous solid waste that are difficult to dispose, and the pollution of water quality and groundwater storage by chemicals generated during the process of oil exploration and processing.

Management efforts at sharpening the knowledge base of employees on the environmental impacts of their refinery activities were useful due to the adduced heightened consciousness in the staff. The Management should, therefore, make a conscious effort to tow and expand that path of building the knowledge base on environmental consciousness for effective and responsive actions to address the adverse impacts of refinery activities.

The purview of the majority of the mitigation measures of TOR on the environmental concerns of their work is bright, especially the positive effect on the treatment of wastewater. However, a re-examination of interventions for gas flaring and water pollution activities such as carbon capture and storage (CCS) and provision of drains does not seem to produce the desired outcomes.

In addressing the environmental impacts of oil refinery activities, it is important to reassess the mitigation measures of TOR because the majority of interventions applied by TOR to tackle the impacts of refinery activities on air, water, and land/soil quality have not produced much better outcomes. It is, therefore, recommended that environmental regulatory institutions such as the Environmental Protection Agency (EPA), and the Minerals Commission should continue to monitor oil refineries and related industries to ensure that they strictly comply with the protocols that guide mining exploration and processing in the country. At the managerial level, it is also suggested that management of refineries put in measures to regulate and uphold environmental standards.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Jones Lewis Arthur

Jones Lewis Arthur is an Associate Professor and Dean of the Faculty of Applied Science and Technology, Sunyani Technical University, Ghana. Jones had his undergraduate and postgraduate education at the University of Cape Coast, Ghana. Post Graduate Diploma (Innovation in Finance) from Erasmus University Rotterdam, and Ph.D. in Geography from the University of Victoria, Canada. His work experience includes teaching and research at both undergraduate and graduate levels of education. His research interest includes livelihoods, dam impacts, energy management, capital assets and management in general.

Sonny Davis Arthur

Arthur has acquired a stream of experience in both academic and administration positions in Sunyani Technical University, Kwame Nkrumah University of Science and Technology (KNUST), Ghana and Valley View University, Oyibi-Ghana. Jones has several peer reviewed publications to his credit. Jones continues to serve and offer his services including mentoring other faculty in various capacities to support the growth and development of the Sunyani Technical University and education in general. He continues to be an invaluable asset to the academic communities.

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