How is the oil and gas industry transitioning to sustainable energy sources?

O&G Industry will play an important role in the energy transition. The renewable energy sources will gain relevance the energy matrix in the global economy. Some paradigms shall be challenged to succeed and improving LCOE shall be a key metric for the success of any future technology to support the energy transition.

The oil and gas industry is transitioning to sustainable energy sources through initiatives like CCUS (Carbon Capture, Utilization, and Storage) and the growing adoption of hydrogen technology, leveraging existing infrastructure to mitigate emissions and drive towards a greener future.

The Oil & Gas industry is the most suited in terms of capabilities of transition. They are already experts when it comes to energy (in terms of societal consumption needs), but also when it comes to chemical and geological knowledge, needed for sources such as hydrogen and biofuel. They are also qualified when it comes to capital and financial capabilities of investment.

The oil and gas industry is transitioning to sustainable energy sources through various strategic initiatives and investments. Some key ways in which the industry is moving towards sustainability include: *Reducing Greenhouse Gas Emissions -increasingly using low-carbon or renewable energy sources to power their operations. *Embracing Low-Carbon Technologies - produce energy through renewable technologies such as wind, solar power, and biofuels. * Developing Hydrogen Production - Hydrogen is a key enabler of the energy transition, especially for hard-to-abate sectors like heavy industry and heavy-duty transport. *Carbon Capture, Utilization, and Storage (CCUS) *Promoting Natural Gas *Commitment to Net-Zero Goals

De acuerdo con el IEA veremos que todos los combustibles fósiles alcanzan su punto máximo antes de 2030, sin embargo, los líderes de las empresas petroleras han comunicado, lo costosa que se ha vuelto la transición energética, por ejemplo, en el caso del hidrogeno verde, el equivalente al precio de 1 barril de petróleo es de USD $ 400. A pesar de lo anterior, la mayoría de las empresas muestran sus esfuerzos en incluir energías renovables, algunos ejemplos son, Repsol con los Biocombustibles, empresas como Equinor en el mar del norte con la energía Eólica para solventar el problema de contaminación costa afuera. Definitivamente estamos haciendo el trabajo.

It is recognized that it is much easier to capture carbon directly from the source rather than trying to extract it from the atmosphere, as the CO2 concentration in the atmosphere is very low. Since the O&G industry is responsible for major carbon emissions, implementing CCS can help it capture up to 85% of their emissions. Nowadays government incentives can help cover up the fact that it is much cheaper to just release emissions into the atmosphere.

While oil and gas is still needed to bridge energy demand to make up time for new and affordable renewable energy technologies to develop, the industry can contribute towards reducing 15% of its produced carbon footprints by doing re-injection on flared gas and the CO2 in the downstream system byproducts. These efforts should also be supported by other stakeholders. The governments, for example, should incentivise and put some constraints to strongly encourage CCS, and researches and studies should continue to create more viable technologies and solutions to put CCS infrastructure easily and affordably in-place

Carbon capture and storage (CCS) is a technology in which all oil and gas companies are already investing and could help them in keeping their businesses in the short-term in different ways. This includes reducing emissions in their operations, reducing the carbon footprint, and especially driving new business lines, such as hydrogen production

In this era when the focus is all about sustainability even the conventional players are pivoting in this direction. It is quite visible by the investments in the new CCUS projects be it converting the depleted formation as a carbon storge unit or finding new ways to reduce the carbon footprint. However, the commercial viability of those projects is still questionable.

Emissions reduction focuses on implementing measures to reduce greenhouse gas emissions directly (at the source), and effectively minimize the carbon footprint. Carbon offsetting can be done by several means including Reforestation, renewable energy projects, methane capture or other energy efficient initiatives including even waste management. By engaging in carbon offsetting and increasing their efforts in emissions reduction, companies and individuals can play a role in mitigating climate change and support a smooth transition to a more more sustainable energy future

The Oil and Gas industry holds a major advantage when it comes to hydrogen. Hydrogen can be generated through different methods, let us list 4 here: - Electrolysis through electricity generated from renewable sources. - Through natural gas, inside special plants. - Through storing various components, including CO2 and Methane, which results in Hydrogen and in the solidification of carbon, making it easier to store. - And recently, we discovered that it is possible to find natural reservoirs of Hydrogen. 3 of the mentioned 4 methods lay in areas of expertise that are already existing within the Oil and Gas industry, especially geology and geo-chemical engineering.

Hydrogen has emerged to be an alternative for conventional fossil fuel. However still being in the R&D phase there is still a long way to go. However, the plethora of different types of Hydrogen (almost making a rainbow) is a positive that something big might come up if not altogether replacing the fossil fuel but adding as a add on in reducing the emissions.

Hydrogen will be a key enabler of the energy transition. - oil and gas industry often has long histories with hydrogen production in their refining and chemical processes. - low-carbon hydrogen (blue hydrogen) can support to decarbonize hard to abate sectors such as heavy industry (steel, cement) and heavy-duty transport, to lower their emissions. The oil and gas sector has the experience, skills capabilities and knowledge to develop and scale up for hydrogen production and transportation .

AI and digital solutions will be one of the key enables on achieving maximum energy with minimum emissions. With data driven models and advanced solutions, we transform the current conventional operations into smart operations, hence less GHG emissions.

In addition to above, stakeholder engagement and collaboration can contribute positively to the time span of project leading to earlier revenues.

One of the best ways is incubators and think tanks! Each country which is harnessing these powers, with synergy they’ll come together in time. It’s that simple, planning and executing. It’s not elimination, oil will always be there.

I think one of the first steps towards energy transition is to work on current energy efficiency. We need to improve efficiency in production as well as in consumption.

Regardless of whether oil and gas operators decide to adhere to their traditional core business or gradually shift toward a more diversified portfolio to address energy transition, they should rethink their operating models and embrace a forever-lean mindset, so that they can remain versatile for any oil price and and be able to compete against all new energy options, especially from an external stakeholders' viewpoint. This means they need to adopt agile business operations and drive capital efficiency, decarbonize the oil and gas value chain, and leverage digital solutions as a core enabler in order to lower break-evens and achieve best-in-class asset performance.

The Oil & Gas, being the main current energy source, has to start seriously thinking about ways to help the environment. Think about it as driving a car at a speed of 120 km/h, 100m away from a tree. We have not hit the tree yet, but if we're not serious, it will not be easy to stop in time before the crash.

If the life standard is to be homogenized to the present elevated level, then the required needed power can be truly sustainably provided only with the help of nuclear power plant, as the current available and validated technologies make the risk-benefit analyse to be in the favor of it.

Here are more suggestions for the oil and gas industry transitioning to sustainable energy sources. Electrification of Operations: Reducing fossil fuel reliance by using electric-powered equipment. Methane Emission Reduction: Preventing methane leaks to minimize environmental impact. Energy Efficiency: Improving energy use efficiency in operations to lower carbon footprint. Alignment with SDGs: Contributing to Sustainable Development Goals to address global challenges. Policy Adaptation: Keeping up with changing regulations aimed at emission reduction. Clean Tech Investments: Investing in emerging technologies for cleaner energy solutions.

Transitioning the oil and gas industry to a sustainable model requires innovative solutions that mitigate environmental impacts. One effective approach is the utilization of flare gases for electricity generation. By converting these gases into energy, the industry can reduce emissions and minimize waste. Improving processes to decrease flare gases is crucial, but implementing a Combined Cycle Power Plant alongside refineries can further enhance sustainability efforts. This integrated approach not only reduces environmental harm but also promotes energy efficiency, making significant strides towards a more sustainable future for the oil and gas sector.

The oil and gas industry is playing an important role in the energy transition by providing the affordable and reliable energy needed to fuel fair growth and improved living conditions for all, producing this energy with decreasing emissions to support a net-zero world. It is contributing to a net-zero future in a number of ways: reducing greenhouse gas emissions from their operations, through energy efficiency, flare reduction and managing methane emissions, as well as increasingly powering and integrating their operations with renewable energy sources and low-carbon technologies (hydrogen, CCS).