Energy Audit (MMH223559)

Proposal: Implementation of ISO 50001 Energy

management system for an off-grid oil and gas
production facility

GLASGOW CALEDONIAN UNIVERSITY

SCHOOL OF COMPUTING, ENGINEERING AND BUILT ENVIRONMENT

PgD / MSc in ENERGY AUDIT

Name: Mohamed Said Hamed Al-Ismaili

Student ID Number: S2159886

Tutor: Professor Sudhir

Word Count: 1957

(excluding table of content and tables containing data)

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 Contents
1. Introduction to ISO 50001 ......................................................................................................................... 3
1.1 Aim and Objectives ............................................................................................................................. 3
1.2. Benefits of ISO 50001 ......................................................................................................................... 3
1.3. PDCA Framework ............................................................................................................................... 4
2. Requirements of ISO 50001 ...................................................................................................................... 5
2.1. Evidence & records ............................................................................................................................ 6
3. Implementation of ISO 50001 in HCF Sahmah field .................................................................................. 7
3.1 Integration of ISO 50001 ..................................................................................................................... 7
3.2 Defining the current state of the system ............................................................................................ 7
3.3 Gap analysis ........................................................................................................................................ 8
4.1 Development of EnMS and policy ....................................................................................................... 9
4.2. Energy Planning................................................................................................................................ 10
4.2.1. Energy baseline ......................................................................................................................... 11
4.2.2. carbon footprint ........................................................................................................................ 12
4.2.3. Key performance indicators and benchmarks .......................................................................... 13
4.3. Implementation and Operation ....................................................................................................... 13
4.4. Checking performance ..................................................................................................................... 14
4.5. Management review ........................................................................................................................ 14
6. Cost estimates for training and instrumentation .................................................................................... 14
7. Government Incentives ........................................................................................................................... 15
8. Conclusion ............................................................................................................................................... 16

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1. Introduction to ISO 50001
1.1 Aim and Objectives
Building upon the findings of the energy audit conducted in Sahmah oil field which set the

groundwork for a solution to the inefficient energy system. To address these issues, this

proposal advocates for the adoption of an energy management system within the framework of

ISO 50001 a globally recognized standard with a demonstrated history of successfully

minimizing energy consumption across various facilities engaged in different activities and of

different scales.

The objectives of this proposal are to shine light on the international standard and the benefits

it can yield. In Addition, it provides insights into the structured framework used for

implementation, outlining the requirements, and present recommendation to guild

stakeholders through the process of developing an energy management system.

1.2. Benefits of ISO 50001

Financial benefits encompass a notable reduction in energy costs of about by 20% according to

Piñero chairman of ISO (Charles H. Eccleston, 2012). Additionally, resource consumption of fuel

and water. The clarity provided by a well-defined system enhances the ability to make informed

long-term cost-effective decisions. Moreover, the initiative supports facilities in prioritizing the

integration of cutting-edge energy-efficient technologies, embracing alternatives such as

innovative energy systems and energy conservation measures.

Reputation benefits are realized through the promotion of innovation, contributing to the

development of a low-carbon economy for the future. Additionally, there is an improvement in

public relations as the organization demonstrates a commitment to energy management,

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portraying a responsible and forward-thinking image. This, in turn, positively impacts employee

morale, fostering a sense of pride in working under a management dedicated to doing things

right.

Legal benefits encompass meeting both current and future mandatory energy efficiency targets

and adhering to the requirements of greenhouse gas emission reduction legislation.

Furthermore, this initiative plays a crucial role in reducing the generation of greenhouse gas

emissions, Thus, the legal benefits not only ensure compliance with regulations but also

contribute significantly to broader environmental goals and responsibilities (Charles H.

Eccleston, 2012).

1.3. PDCA Framework

At the core of all ISO management system standards, including ISO 50001, lies the Plan-Do-

Check-Act (PDCA) cycle—a fundamental operating principle. Embracing this cyclical approach

empowers organizations to effectively manage and perpetually enhance their overall

effectiveness. Developing an Energy management system becomes logical and systematic when

applying the framework. Commencing with planning which involves a comprehensive analysis of

the current organizational systems, setting of objectives, and formulation targets. The plans on

paper are turned into Dos in the next step of the cycle which involves taking tangible action of

the devised plans. The subsequent step encompasses the critical aspects of measurement,

monitoring and gauging actual results against the initially set objectives. Finally, as a result of

checking performance, nonconformities arise which are addressed by taking corrective action in

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the form of planning, repeating the cycle and yielding small incremental improvements that

become substantial overtime (BSI, 2013).

2. Requirements of ISO 50001

First and foremost, it's crucial for the top management to grasp the requirements of the

standards and genuinely commit to putting in place a system that aims to improve energy

performance. there are 6 major requirements for ISO 50001 implementation shown in Table 1.

Each corresponds to a phase in the PDCA framework, the significance and emphasis of the

framework is due to its continuous improvement potential and without applying it the system

would not improve.

MAJOR REQUIREMENT DESCRIPTION

MANAGEMENT ROLE - PLAN Appointing roles, responsibility, and authority as

well as allocating resources required
ENERGY POLICY - PLAN A document stating the intention, direction, and
commitment to energy performance excellence
ENERGY PLANNING - PLAN Contains the methods, procedures, and objectives
of the system
IMPLEMENTATION & OPERATION - DO How essential performance data will be
maintained
CHECKING PERFORMANCE - CHECK Analysis and examination of records against
benchmarks
MANAGEMENT REVIEW - ACT Addressing performance issue through corrective
and preventive actions

Table 1: Showing the major requirements of ISO 50001

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Once the system is developed and starts running through cycles the improvements add up

eventually qualifies for an ISO 50001 certification which is a testament that the system is of a

high standard boosting the company’s reputation (BSI, 2013).

2.1. Evidence & records

Certification requires evidence. One of the most important practices of an EnMS is to document

all aspects, which include the metrics used to track performance as well as the procedures and

policies set and others shown in Table 1. These documents are used to communicate intentions,

provide instructions, and most importantly provide the evidence of the actions taken and the

results that are yielded.

Administrative documentation Technical Records

Energy policy Energy Baseline

EnMS Description Energy performance indicators

Energy planning documents Competence of employees

Energy review Calibration records

Objectives, targets, and plans of action Corrective and preventive action records

Roles and responsibilities of employees Evaluation results

Procedures and methods Areas of significant energy use

Table 2: Shows the typical documentation and records required by ISO 50001

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3. Implementation of ISO 50001 in HCF Sahmah field
3.1 Integration of ISO 50001
ISO 50001 is designed to work with other systems and can be implemented at any point in time

and maturity of a system (ISO, 2018). It is beneficial for organizations that already have an

energy management system as well as organizations that have never managed their energy.

Simply identifying the current state of the energy system and comparing to the ISO state results

in gaps that can be addressed to aid in developing an EnMS.

3.2 Defining the current state of the system

Sahmah field energy audit results scored poorly in EUI, Load factor, High carbon emissions and

revealed that the means of collecting energy data were not sufficient and much of the data

were only estimates (Ismaili, 2023). This shows that the current system is underdeveloped and

requires a lot of work. However, this also means that huge potential cost savings can be

achieved by initiating an energy management system.

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3.3 Gap analysis
The energy audit is an excellent tool that can provide an overall picture of an energy system and

contains many of the key matrices used by ISO 50001. This enables the current state of the

energy system to be defined and by recognizing the requirements of ISO 50001 a gap analysis

shown below (Table 3) can be tabulated with the aim of identifying lacking areas and addressing

them.

Item Current state desired ISO state

Management responsibility No The ISO requires the

organization to have an energy
Energy policy No
policy stating its commitment
to achieving improvement in
Energy baseline and carbon Estimation from energy
energy performance. By
footprint
conducting and documenting
audit
an energy plan that includes
Monitoring measurements and Consumption rate data an energy review, energy
analysis baseline and energy
performance indicators. It also
Identification of areas of significant Estimation from energy
energy use mandates the organization to
audit consider energy improvement
opportunities in all its
practices and decisions. in
Energy key performance indicators No
addition, requirements to
continuously check the system
Operation and maintenance No
and review the outcomes for
remedial actions, ensuring the
Training and competency No documentation of all aspects.

Energy audit and continues No

evaluation of performance
Table 3: Gap analysis

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4.1 Development of EnMS and policy
Initiating the energy management system involves steps to define the key elements. Which

includes a statement showing top management commitment, allocating necessary resources,

defining the intentions for improvement, and designating a representative. Documenting these

aspects serves as the initial energy policy.

The representative along with a team can be assembled to lead the development of the energy

management system, it is advised that the team includes individuals from diverse departments.

The team should ideally include at least one decision-maker from top management, to ensure

access to necessary resources. The project team can then start to put the pieces together

starting with the energy planning, Implementation, and operation, checking performance and

finally decide on management review.

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4.2. Energy Planning
Next step is to perform and document an energy plan involving key metrics, setting objectives,

targets, and action plans with the aim to improve energy performance. The energy audit has

enabled the estimation of some of these metrics that can be used as guidance.

Identification of energy users

The energy audit showed that the most significant energy user are the air conditioners used for

space cooling with a consumption of 72% from the entire capacity.

Figure 1: Pie chart showing the SEU for Sahmah main

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4.2.1. Energy baseline
The results of the energy audit can be used to calculate the baseline energy, by averaging the

fluctuations throught the day the baseline is found to be 270 KW/hr.

Figure 2: Shows the energy consumption and the baseline

This energy baseline can then be measured against the energy performance and necessary

changes can be made when the energy baseline does not reflect the organizational energy use.

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4.2.2. carbon footprint
To calculate the carbon equivalent diesel fuel is used to generate energy. From the energy audit

it was calculated that 613,200 L was consumed in a year resulting in 1.373 million Kg of CO2

emitted in 2022. The table below shows the monthly diesel consumption for the year 2022

(Ismaili, 2023).

Month KW Diesel (L)

Jan 201,655 52,080

Feb 182,140 47,040

Mar 201,655 52,080

Apr 195,150 50,400

May 201,655 52,080

Jun 195,150 50,400

Jul 201,655 52,080

Aug 201,655 52,080

Sep 195,150 50,400

Oct 201,655 52,080

Nov 195,150 50,400

Dec 201,655 52,080

2,374,325 613,200

Table 4: monthly diesel consumption for power generation in 2022

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4.2.3. Key performance indicators and benchmarks
Energy performance indicator (EnPIs) are parameters like energy consumption rates with

respect to characteristics such as temperature, pressure, flowrates, energy losses and any other

factors that affect the energy consumed.

Since the most significant energy user is space cooling by a large margin, a suitable

characteristic to consider is temperature due to its substantial effect on energy consumption.

Therefore, kWh/C is a great selection for EnPI that can gauge performance.

4.3. Implementation and Operation

At this point an initial plan is complete, and the doing part of the framework can start by:

• Announcing the energy management system, the policy and intention to the rest of the

organization

• A data management system is also initiated, to maintain, collect and document the

energy data necessary for checking performance.

• The team can carry out an awareness and educational campaign to onboard all

employees, ensuring they understand the initiative and the roles they play.

• Metering installation and monitoring devices introduced should be particularly clear to

all staff in the procedures of how they are used, maintained and troubleshooted.

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4.4. Checking performance
Now that the system is up and running the framework necessitates checking it for

nonconformities, abnormalities, or issues. These observations can be made by routine

monitoring, interpretation of the data and through compliance verification audits. Scheduled

audits are crucial to identify areas that are not obvious without inspection. The frequency of the

audit will depend on the maturity of the system. at the early stages quarterly audits are

advisable and can later be carried out annually.

4.5. Management review

All the findings made are documented and brought forward to the management for review to

initiate corrective action, develop prevention methods or even make changes to the policy and

procedures if the event calls for it to ensure that issues are addressed and the path to meeting

set targets are clear.

5. Cost estimates for training and instrumentation

The cost associated with implementation of ISO 50001 can greatly vary depending on the

quality desired and support needed. It is noteworthy that these investments can have

significant returns in the long run. HCF has carried out several projects inhouse successfully

which shows a capacity to greatly reduce the costs.

ISO 50001 introduction trainings and lead auditor trainings cost around 900 OMR (Coursetakers,

2023) each conducted by various authorized iso institutions. Therefore, if the company decides

to train all department heads, the designated energy management team and Top management

members the total number of employees would be around 15 which is 25% of the entire

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organization costing around 13,500 OMR. Alternative options are available to outsource

however, development of the system inhouse would yield better outcomes.

Instrumentation and monitoring software can be outsourced and are typically charged by the

area. Frazer services charges 2.50$ (Frazers, 2023)for square foot this translates to 32,000 OMR

for Sahmah main’s 3200 sq meter cooled area. Summing up the cost would result in an initial

investment of 45,000 OMR a quarter of the current energy costs. Therefore, achieving the 20%

reduction would have a positive turnover in only 3 years.

6. Government Incentives
In 2022, Oman announced a target to achieve net zero emissions by 2050 and began reducing

fossil fuel use in its domestic energy mix (IEA, 2023). This indicates commitment made by the

government which indicates that it is only a matter of time before policies are made to

incentives energy management and carbon emissions.

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7. Conclusion
The report aimed to serve as a comprehensive guide for the implementation of ISO 50001

within HCF, an oil and gas company. It commenced by delineating the advantages of adoption,

covering financial, legal, and moral benefits. Subsequently, the PDCA framework was elucidated,

along with the requisite steps for developing an effective energy management system. The

overarching goal was to enhance awareness of the standard's essence.

The practical implementation guide unfolded with an initial focus on assessing the current state

of the system, aligning it with the standard's requirements, and identifying any existing gaps.

These gaps were then systematically addressed, incorporating recommendations and examples

gleaned from the energy audit conducted at HCF's facility. Following the ISO framework, the

implementation process unfolded in a cyclical manner: planning, executing, reviewing, and

acting, thereby fostering a continuous improvement cycle for the system.

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8. References
BSI. (2013). ISO 50001 Energy managment Its your cost. Your Implimentation guide.

Charles H. Eccleston, F. M. (2012). Inside Energy: Developing and managing an ISO 50001 Energy
Managment System. Boca Raton, Florida: CNC PRESS.

Coursetakers. (2023). ISO 50001 ISO Energy managment systems. Retrieved from Coursetakers.ae:
https://www.coursetakers.ae/search/courses-in/professional/environment-
management/energy-management/iso-50001/fees

Frazers. (2023). How to assess building energy management system. Retrieved from
Frazerservicecompany.com: https://frazierservicecompany.com/assess-energy-management-
system-
costs/#:~:text=The%20answer%20is%20complicated%2C%20but,the%20value%20of%20an%20i
nstallation.

IEA. (2023, June 12). Oman’s huge renewable hydrogen potential can bring multiple benefits in its
journey to net zero emissions. Retrieved from iea.org: https://www.iea.org/news/oman-s-huge-
renewable-hydrogen-potential-can-bring-multiple-benefits-in-its-journey-to-net-zero-emissions

Ismaili, M. (2023). Energy Audit for an off-grid oil and gas production facility. Muscat: Unpublished.

ISO. (2018). ISO 50001:2018 - Energy management systems -- Requirements with guidance for use.
Vernier, Geneva, Switzerland: ISO.

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