Life-Cycle Value Assessment (LCVA) is a business analysis and decision-making methodology that reviews social, environmental and economic information as it pertains to the full life cycle of a project or product. LCVA is a key decision tool for integrating and balancing the social, environmental and economic factors inherent in our projects.

LCVA is based on the premise that good information enables better decisions. Through this process, new ideas and opportunities emerge that may result in project improvements such as enhanced technical design, reduced environmental impact and increased efficiency.

LCVA Background

We adopted the LCVA planning methodology in 1997 in consultation with the Pembina Institute for Appropriate Development (Pembina). We continue to work with Pembina in the development of the LCVA process, tools and training programs.

LCVA is integrated into our project delivery model (PDM) and Total Loss Management (TLM) standards. The LCVA process is also incorporated into both the Downstream and Upstream economic evaluation guidelines. For instance, in 2008, the LCVA methodology was identified as a key tool for the identification and mitigation of impacts related to water and, as such, was incorporated into the newly developed Corporate Water Principles. We have focused on continuously improving processes, programs and services over the last few years, and have updated and adapted the LCVA methodology to better fit a wider range of projects and communities. We continue to inform Petro-Canada employees of the benefits of incorporating LCVA thinking into project planning, design and implementation.

LCVA Use

LCVA analysis may be scaled up or down to fit any project. The level of analysis employed depends on the number of potential social and environmental issues, as well as the dollar value associated with the decision at hand. Having this flexibility has increased the number, scope and scale of projects assessed using this methodology.

In 2008, assessments were conducted for a wide variety of projects, including analyses of flowline de-bottlenecking, tailings management and seepage mitigation.

The growing use of LCVA requires increased employee understanding and awareness of the methodology and tools. We deliver as-needed training sessions throughout the Company. In 2008, a targeted training program was launched to increase LCVA awareness and use within our International & Offshore Business unit. Throughout the year, we also delivered LCVA training and assessments in five countries.

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