HSSE Manager and Regulatory Compliance at Capricorn Energy

Ricardo González

What is it, and where is it obtained?

Ours are energy production projects. All these projects have the potential to cause accidents and environmental damage. They can also cause inconvenience to the people living near the places where they are developed, especially if we focus on producing hydrocarbons, minerals, and renewable energies, to improve the standard of living of those who consume them.

Some people benefit from the advantages of energy use, others do not, and some suffer from the consequences of energy production just because these projects are established near their communities. Here I refer mainly to those who do not benefit, those who are harmed, and those who live in that environment, who, in reality, are the ones who depend on obtaining the social license because the beneficiaries will only be in favor and to obtain by paying for energy that brings them benefits and comforts, while those who live in the area where the projects are developed are often marginalized in their own lands.

"Some people benefit from the advantages of energy use, others do not, and some suffer from the consequences of energy production just because these projects are established near their communities."

In a presentation, I heard that the social license is permission granted by those who live with the project but are not part of it. If we analyze some of theneighbors of projects where hydrocarbons such as natural gas are obtained, it is inconceivable that, in an extreme case, the neighbors continue cooking with firewood, this reflection made a lot of sense to me, and it is that these people suffer from the risks of the project and do not even benefit from what is exploited in their communities, even their economic activities are affected by the development of these projects.

This should be seen as a risk that affects the continuity of the project\'s activities. Although many governments force energy producers to leave benefits to the communities, these resources do not always reach the right people.

In a visit organized by the World Bank in which I participated when the National Hydrocarbons Commission in Mexico was in the process of conforming the regulatory framework for gas flaring and venting, we were received in Alberta, Canada, by our counterparts from the AER, (Alberta Energy Regulator) and part of the places we visited was so that we could witness, among other things, the way in which gas was disposed of from wells where the infrastructure did not allow for the possibility of processing and using the gas, as it was simply flared on site because it was the cheapest and safest option for producing crude oil. What we were able to observe is that instead of being destroyed and disposed of safely, the gas was given away to neighbors who consumed it freely for a variety of purposes, from heating to generating electricity. The gas that was previously flared was now being used for the real benefit of the communities. 

At that moment, I clearly understood that the Social License is obtained with this type of action when one looks at the community and decides to share the benefits of the project so that the adjacent community can participate in the advantages of this energy that makes life easier and more comfortable.

Listening to the voices of those who have benefited from associated gas in oil wells, their testimonies went beyond gratitude. They said that for them, the project is important because it benefits them and their families, they even defend the leaders of the project when things do not go well, and they even take care and protect the equipment that has been placed in the well.

What could be better than having a sociallicense for your project? Now, your neighbors can be your allies in such an important project.