For Pickles, sustainability and circularity are our primary environmental objectives when it comes to reselling assets within the oil and gas industry. We work with different companies that rely on fossil fuels and mining, so we understand the need to set an example of sustainability within the industry. Reselling assets within the oil and gas industry has become a vital business both for the economy and the industry. The part that we play in this intricate system is ensuring that equipment, machines and parts that have either come to the end of their life, or require a new home, don’t end up in landfill to rust away and pollute the environment.
That’s why Pickles Oil & Gas are focusing our sustainability objectives on three main pillars that we believe will have a positive impact on the environment and strive towards a circular economy within the asset remarketing sector. We are renewing, reusing and recycling!
Renewing an asset is a process which requires a low amount of investment that can prolong the lifespan of a product by years and sometimes decades. Typically, renewing an asset will involve replacing a part or section for it to function properly again. This is seen with certain oil and gas assets we receive, particularly subsea equipment. Other ways in which an asset can be renewed can simply be by improving its aesthetic condition. Pickles Oil & Gas has partnered with the industry’s best service providers to renew equipment, resulting in additional positive environmental aspects.
Reusing an asset is simply utilising the equipment or part for the purpose that it was intended for. Oftentimes a client just needs to reduce their stock inventory or boost their cash reserves, which is why the item is for sale. This is where we source buyers who might be seeking this same asset or part for the business, thereby avoiding the need for new equipment to be purchased, or the asset being sold for scrap.
In other circumstances, we have found that an asset has been acquired for a completely new use due to its operational life ceasing. An example of this is steel piping, which functions primarily for drilling and extraction of gas. At the end of their lifespan, these used pipes are unlikely to be reused for other drilling or extraction projects but have become hugely popular as a material for the construction of farm fencing. Being exceptionally sturdy and resistant to Australia’s harsh elements and growing fire dangers, steel piping serves as an environmentally friendlier option to that of wood or plastic fencing.
In 2022 alone, we have had several sales where all the items sold we reused or repurposed meaning a 100% potential for emissions reductions. These assets have been sold to buyers intending to reuse or repurpose the equipment for a second uselife life, in on product life cycle. The purchasing and refurbishing of this equipment will avoid emissions from the production of brand-new equipment as well as avoiding emissions created in the production of secondary products (recycling processes).
Recycling an asset is the process whereby the item is responsibly sent to a facility that can be properly separated with useful material being resold and used for the construction of new assets. In other cases, bulkier items will eventually be melted down and turned into a new piece of equipment, meaning responsibly sourced and ecofriendly machinery without the need for new material.
This aspect is often overlooked by our customers as we have had some sales where up to 31% of the items sold were directly recycled. Alerting out customers to recycling also helps to prevent assets being abandoned where they may slowly rust away for hundreds of years.
Enhancing our network for a circular economy
To further improve our goals of delivering a circular sustainable marketplace that reduces waste, Pickles Oil & Gas has partnered with DIGATEX Inventory Hub. DIGATEX’s Inventory Hub will fulfill transactions between operators, providing purchasing efficiency, transparency, and an arm’s length auditable process. The Inventory Hub arose from the top five oil & gas operators in Australia creating a joint initiative to share spare parts. With similar assets and common suppliers, significant capital savings are achieved by pooling common spare parts whilst at the same time providing positive sustainability outcomes.
As a global marketplace for buying and selling oil and gas equipment, Pickles Oil & Gas vertical lead, Stephen Amy, said Pickles has the structure and processes already in place to facilitate seamless transactions. “Pickles Oil & Gas is delighted to be a partner on this transformative Inventory Hub. It brings more than just dollar savings as the sustainability and reuse approach benefits all parties, including shareholders via the ESG process and importantly the environment benefits through waste minimisation,” says Amy. The Hub de-risks downtime of the operator’s facilities by sharing parts in a timely manner, as well as delivering significant capital savings.
There is no denying that sustainability is key to reducing emissions and improving our overall climate goals. The asset reseller market is a niche one yet can contribute significantly to a better future where a well-established circular economy prevents excessive waste that can be detrimental to the environment. While advice in the area is important, we believe delivering actual results is even more important. Pickles Oil & Gas has a proven and successful service model to help clients divest and dispose of their assets in the most environmentally conscious way.
Our in-house single source service model for the energy sector includes:
- Asset advisory, valuation and appraisal
- Transport and logistics
- Secure storage with 28 locations across Australia, Malaysia and global capabilities
- Asset preservation, technical inspection, certification, maintenance and repair, cleaning, decontamination, NORM & Mercury testing and handling
- Asset realisation strategies, feasibility assessments, remarketing programs with multiple methods of sale including auctions, EOI, tender and private treaty
- Established divestment and disposal pathways for reuse, repurposing and recycling
- Global network and marketing channels, with over 4 million registered buyers
- Buyer compliance and risk mitigation, including sanctioned party and buyer screening
- Highest safety standards AS/NZS 4801 2001 and Environmental Management ISO 14001 Certification
- Asset reporting and traceability, PAIRS asset management system
To learn more about our sustainability goals, challenge us to provide more than just advice and consulting, but actual results for your next asset divestment or disposal project, get in touch with us here.