The Company adheres to green development, and integrates resource and energy conservation into all stages of production and operation.

 

Energy Management

 

We always comply with laws and regulations, such as the Energy Conservation Law of the People’s Republic of China, to optimize our energy management system, enhance the energy efficiency in operation and upgrade our energy mix.

 

Enhancement of Project Energy Efficiency

 

Through technological improvement and management optimization, we have diligently worked to reduce reliance on traditional energy sources, enhance energy efficiency, and achieve energy conservation and carbon emission reduction. In FY2023, our utilization of electric drive technology enabled the completion of 45,309 meters of drilling in the shales of the Southwest region, saving 7,868.66 tons of standard coal and resulting in a reduction of carbon emissions by 19,405.03 tons, significantly curbing unnecessary energy consumption.

 

Promotion of Energy-Saving Operation

 

Green office: We promote green office practices by actively conducting energy-saving awareness campaigns among employees. We have optimized the management of lighting, heating, and cooling systems in office areas to reduce energy consumption in day-to-day operations. Additionally, we have implemented an "asynchronous communication" mechanism, utilizing various information management tools to enhance the flexibility of employee office work. This approach not only improves management efficiency but also promotes a more energy-saving and emission-reduction-oriented work culture. In FY2023, we renewed the old heat exchanger at the Xinjiang Luntai oil casing inspection base in an effort to prevent leakage. With such detailed endeavor, we cut standard coal consumption by 0.5 tons.

Green mobility: We have continued to encourage our employees to adopt environmentally friendly practices in their daily lives, emphasizing emissions reduction and advocating for green mobility. Our ongoing efforts include promoting a "work in the same office" program across all countries where the Company operates. This initiative facilitates real-time communication and collaboration among employees worldwide through an online platform, significantly reducing transportation emissions associated with inter-regional travel for meetings.

 

 

 

Water Resource Management

 

We have implemented the laws and regulations of the countries and regions where our business operates, including the Water Law of the People's Republic of China. Internally, we have also formulated the Waste Water and Waste Liquid Pollution Prevention and Control Management Measures to ensure efficient water usage and compliance with wastewater treatment standards. We have established a comprehensive water resources management ledger system, requiring relevant departments to report monthly water consumption data to enhance our management practices. Additionally, we have set annual water resource management targets, linking them to the remuneration of senior executives, and conducting quarterly, semi-annual, and annual assessments of water resource management performance.

For FY2024, we have established water management targets and will continue to promote water recycling technologies to reduce freshwater usage, minimize wastewater discharges, and set industry-leading standards for water use efficiency.

 

Water Conservation

 The major sources of water for the Company include surface water, groundwater, and municipal water supply, and the Company has not yet encountered any shortage of water resources.

Throughout our operations and construction activities, we actively promote water recycling and strive to reduce the use of fresh water. For instance, we recycle downhole operation wastewater for well washing, reuse fracture pressure flowback fluids, and utilize hot water from boilers in the station area for domestic purposes. Additionally, we have constructed drainage ditches at well sites to collect rainwater on a daily basis and have implemented filtration facilities and sedimentation tanks to ensure the clean utilization of rainwater. In FY2023, we achieved a total of 74,484 tons of fracturing flowback fluid reuse through the recycling of treated flowback fluids in CBM wells as fracturing fluids, and the reuse of flowback fluid after post-pressure plug mill treatment in each fractured well, thereby reducing the amount of fresh water used.

 

 

Material Management

Our raw materials include barite, fracturing sand, ceramsite, proppant, cement, and bentonite. We have intensified our focus on technological innovations and the advancement of material-saving techniques, opting for green, non-toxic, and recyclable materials with high recycling rates. Through these efforts, we aim to decrease raw material consumption per operation compared to conventional methods, thereby mitigating environmental impacts.

 

In FY2023, the Tianjin Plant innovated its techniques and thus reduced raw material use by changing the end ring processing technique from purchasing tube blanks for turning to purchasing stainless steel sheets and coils for turning.