Five Focus Areas for Decarbonizing the Energy System Today

The energy transition is an immensely complex challenge, and achieving net zero while delivering energy security for a growing world will require a diverse mix of energy sources. However, most of the critical components for achieving a net-zero energy system are not progressing quickly enough.?

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According to the International Energy Agency (IEA) ’s Tracking Clean Energy Progress assessment, only two of the 55 components required to achieve net zero by 2050 — electric vehicles and lighting — are fully on track, both of which are still reliant on fossil fuels for electricity today. This is a stark reminder that we must move further, faster to decarbonize our planet, and the energy industry has an important role to play.

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Of the 52.9 Gt of global carbon emissions in 2021, more than 75% were energy-related, and in 2022, upstream, midstream, and downstream oil and gas operations accounted for approximately 5.1 Gt. While the size of these emissions is no doubt a challenge, it is also our industry’s greatest opportunity to drive change. In all IEA scenarios, oil and gas will remain key components of the energy mix for decades to come, so it’s critical that we decarbonize our operations, and the oil and gas industry must be the ones to own it.?

With subsurface expertise, advanced technology, enhanced digital capabilities, and global operations, our industry has the tools to reduce our carbon footprint and help lead the energy transition. Here are five components of the energy system that I believe we should be focused on today.??

Carbon Capture, Utilization, and Storage (CCUS)?

CCUS is one of our most immediate opportunities to decarbonize oil and gas, as well as other industries, and much of the required technology is available today. Through digital, subsurface characterization and dynamic reservoir simulation can be completed faster than ever before. This is helping us to better understand storage site capacity and the potential for injecting and containing fluids, as well as supporting accelerated development planning, operations, appraisals, and monitoring. As an industry, we have the tools available, but we must continue to educate our customers and the public on the safety and effectiveness of CCUS, and we need help from regulators to stimulate investment and make the business cases work.

Methane Emissions??

Pound-for-pound, methane has a 28 times greater impact on trapping radiation than carbon dioxide over a 100-year period and currently accounts for nearly half of all upstream, midstream, and downstream oil and gas emissions. Recent technological advancements have made methane easier to track and assess, and through better planning, measurement, and the use of digital platforms, we can detect and repair leaks and reduce venting. In fact, the IEA estimates that it is possible to avoid approximately three-quarters of methane emissions from oil and gas operations using technology available today.

Flaring Emissions?

A great step toward abating methane emissions is to reduce flaring and eliminate it where possible. Through technology deployment and digital simulation, we can design systems and processes to avoid flaring, including capturing gas and converting it into other useable products or electrical power that can be used on-site or sold back to an electricity grid, or electric power, or even reinjecting it to support ongoing oilfield operations. And where flaring is unavoidable, we can use more modern flare tips or convert to flare stacks to maximize combustion efficiency and significantly reduce emissions.

Cement??

The direct carbon intensity of global cement production continues to increase by approximately 1.5% per year, while a decrease of 3% is required to achieve net zero. In the oil and gas industry, cement is used in nearly every well drilled, with the impact of approximately one ton of carbon emissions per ton of cement used. Geopolymer technologies are starting to emerge, allowing for the creation of cement-free systems, such as EcoShield , which have the potential to replace cement in the wells, maintaining integrity while generating fewer emissions. But while policies are beginning to be introduced across the world to put a price on cement emissions, regulations in some countries still mandate that wells be developed with portland cement, rather than other materials that can achieve the same integrity. Updating these policies is an important step to enable access to these technologies and spur their adoption, which can help lead to economies of scale.

International Collaboration?

The challenges we face are larger than any government, industry, or company can solve on their own, and solving them will require new and diverse investments, collaboration, and support across all energy systems. One area that is becoming increasingly critical is ensuring that industries, such as ours, have a seat at the table to help innovate solutions and apply cross-industry learnings to our operations. As the world will continue to require oil and gas for decades to come, we must view emissions reduction priorities as a global partnership between regulators and the private sector, where we can work together and hold each other accountable.?

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At 斯伦贝谢 , we are leaning into our net zero commitments — decarbonizing our own operations, helping reduce our customers’ emissions, and developing new energy systems for the future. As a technology company, we have a responsibility to drive energy innovation and accelerate the decarbonization of the industry at large as we help build a new energy landscape. And while we are excited by our progress, we know that we cannot maximize our impact alone.??

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Moving forward, it is imperative that our industry continue to make strong commitments to sustainability and take swift action to achieve the climate targets we have set. By accelerating CCUS adoption, reducing methane and flaring emissions, leaning into new cement-free technologies, and continuing to contribute to larger global climate efforts, we can drive a lasting impact for a balanced planet. And by working together to promote innovation and investment, we can meet this generational challenge and achieve a net-zero future together.?

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Referenced:?

• https://www.iea.org/topics/tracking-clean-energy-progress ?
• https://www.iea.org/reports/global-energy-and-climate-model/net-zero-emissions-by-2050-scenario-nze ?
• https://www.epa.gov/ghgemissions/overview-greenhouse-gases ?
• https://www.iea.org/news/new-iea-report-highlights-the-need-and-means-for-the-oil-and-gas-industry-to-drastically-cut-emissions-from-its-operations ?

Sources:?

• IEA World Energy Outlook, 2022?
• IEA Methane Tracker, 2022 & 2020?
• IEA Global Energy Review: CO2 Emissions in 2021?