Decarbonisation - Act Now: An Accessible Pathway for All Upstream Operators to Reduce Direct Emissions

2021 ◽  
Author(s):  
Sam Jones ◽  
Adam Joyce ◽  
Nikhil Balasubramanian
Keyword(s):  
Energy Supply ◽  
Oil And Gas ◽  
Energy Transition ◽  
Cost Effective ◽  
Abatement Cost ◽  
Cost Curve ◽  
Technological Advancement ◽  
Low Carbon ◽  
Simple Method ◽  
Novel Technologies

Abstract Objectives/Scope There are many different views on the Energy Transition. What is agreed is that to achieve current climate change targets, the journey to deep decarbonisation must start now. Scope 3 emissions are clearly the major contributor to total emissions and must be actively reduced. However, if Oil and Gas extraction is to be continued, then operators must understand, measure, and reduce Scope 1 and 2 emissions. This paper examines the constituent parts of typical Scope 1 emissions for O&G assets and discusses a credible pathway and initial steps towards decarbonisation of operations. Methods, Procedures, Process Emissions from typical assets are investigated: data is examined to determine the overall and individual contributions of Scope 1 emissions. A three tiered approach to emissions savings is presented: – Reduce overall energy usage – Seek to Remove environmental losses – Replace energy supply with low carbon alternatives A simple method, used to assess carbon emissions, based on an abatement of carbon from a cost per CO2 tonne averted basis is described. This method, Marginal Abatement Cost Curve (MACC), is based solely on cost efficiency. Other criteria such as safety, weight, footprint and reliability are not considered. Credible pathway for reduction of Scope 1 emissions is presented. Taking appropriate actions as described in the pathway, contributors are eliminated in a strategic order, allowing operators to contribute to deep decarbonisation. Results, Observations, Conclusions A typical offshore installation was modelled with a number of carbon abatement measures implemented. Results are presented as cost effective or non-cost-effective CO2 measures together with the residual CO2 emissions. Based on the data presented, many of the replace measures have a higher cost per tonne of CO2 abated than reduce and remove measure. These findings indicate that additional technological advancement may be needed to make alternative power solutions commercially viable. It also indicates that several CO2 abatement measures are cost effective today. The pathway proposes actions to implement carbon savings for offshore operators, it differentiates actions which can be taken today and those which require further technological advancement before they become commercially viable. The intent of this pathway is to demonstrate that the energy transition is not solely the preserve of the largest operators and every company can take positive steps towards supporting decarbonisation. Novel/Additive Information The world needs security of energy supply. Hydrocarbons are still integral; however, oil and gas operators must contribute to carbon reduction for society to meet the energy transition challenges. As government and societal appetite for decarbonisation heightens, demands are growing for traditional hydrocarbon assets to reduce their carbon footprint if they are to remain part of the energy mix. Society and therefore regulators will demand that more is done to address emissions during this transitional phase, consequently necessitating that direct emissions are reduced as much as possible. The pathway is accessible to all today, we need not wait for novel technologies to act.

Primary Energy System Chain Security Under the Energy Transition

2021 ◽  
Author(s):  
Osamah Alsayegh
Keyword(s):  
Electric Vehicles ◽  
Energy Demand ◽  
Oil And Gas ◽  
Supply And Demand ◽  
Energy Transition ◽  
System Security ◽  
Energy System ◽  
Primary Energy ◽  
Low Carbon ◽  
Low Carbon Energy

Abstract This paper examines the energy transition consequences on the oil and gas energy system chain as it propagates from net importing through the transit to the net exporting countries (or regions). The fundamental energy system security concerns of importing, transit, and exporting regions are analyzed under the low carbon energy transition dynamics. The analysis is evidence-based on diversification of energy sources, energy supply and demand evolution, and energy demand management development. The analysis results imply that the energy system is going through technological and logistical reallocation of primary energy. The manifestation of such reallocation includes an increase in electrification, the rise of energy carrier options, and clean technologies. Under healthy and normal global economic growth, the reallocation mentioned above would have a mild effect on curbing the oil and gas primary energy demands growth. A case study concerning electric vehicles, which is part of the energy transition aspect, is presented to assess its impact on the energy system, precisely on the fossil fuel demand. Results show that electric vehicles are indirectly fueled, mainly from fossil-fired power stations through electric grids. Moreover, oil byproducts use in the electric vehicle industry confirms the reallocation of the energy system components' roles. The paper's contribution to the literature is the portrayal of the energy system security state under the low carbon energy transition. The significance of this representation is to shed light on the concerns of the net exporting, transit, and net importing regions under such evolution. Subsequently, it facilitates the development of measures toward mitigating world tensions and conflicts, enhancing the global socio-economic wellbeing, and preventing corruption.

Technology Focus: Offshore Facilities (September 2021)

2021 ◽  
Vol 73 (09) ◽  
pp. 50-50
Author(s):  
Ardian Nengkoda
Keyword(s):  
Oil And Gas ◽  
Energy Transition ◽  
Oil Price ◽  
Low Carbon ◽  
The Past ◽  
Offshore Technology ◽  
Net Zero ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Low Carbon Energy

For this feature, I have had the pleasure of reviewing 122 papers submitted to SPE in the field of offshore facilities over the past year. Brent crude oil price finally has reached $75/bbl at the time of writing. So far, this oil price is the highest since before the COVID-19 pandemic, which is a good sign that demand is picking up. Oil and gas offshore projects also seem to be picking up; most offshore greenfield projects are dictated by economics and the price of oil. As predicted by some analysts, global oil consumption will continue to increase as the world’s economy recovers from the pandemic. A new trend has arisen, however, where, in addition to traditional economic screening, oil and gas investors look to environment, social, and governance considerations to value the prospects of a project and minimize financial risk from environmental and social issues. The oil price being around $75/bbl has not necessarily led to more-attractive offshore exploration and production (E&P) projects, even though the typical offshore breakeven price is in the range of $40–55/bbl. We must acknowledge the energy transition, while also acknowledging that oil and natural gas will continue to be essential to meeting the world’s energy needs for many years. At least five European oil and gas E&P companies have announced net-zero 2050 ambitions so far. According to Rystad Energy, continuous major investments in E&P still are needed to meet growing global oil and gas demand. For the past 2 years, the global investment in E&P project spending is limited to $200 billion, including offshore, so a situation might arise with reserve replacement becoming challenging while demand accelerates rapidly. Because of well productivity, operability challenges, and uncertainty, however, opening the choke valve or pipeline tap is not as easy as the public thinks, especially on aging facilities. On another note, the technology landscape is moving to emerging areas such as net-zero; decarbonization; carbon capture, use, and storage; renewables; hydrogen; novel geothermal solutions; and a circular carbon economy. Historically, however, the Offshore Technology Conference began proactively discussing renewables technology—such as wave, tidal, ocean thermal, and solar—in 1980. The remaining question, then, is how to balance the lack of capital expenditure spending during the pandemic and, to some extent, what the role of offshore is in the energy transition. Maximizing offshore oil and gas recovery is not enough anymore. In the short term, engaging the low-carbon energy transition as early as possible and leading efforts in decarbonization will become a strategic move. Leveraging our expertise in offshore infrastructure, supply chains, sea transportation, storage, and oil and gas market development to support low-carbon energy deployment in the energy transition will become vital. We have plenty of technical knowledge and skill to offer for offshore wind projects, for instance. The Hywind wind farm offshore Scotland is one example of a project that is using the same spar technology as typical offshore oil and gas infrastructure. Innovation, optimization, effective use of capital and operational expenditures, more-affordable offshore technology, and excellent project management, no doubt, also will become a new normal offshore. Recommended additional reading at OnePetro: www.onepetro.org. SPE 202911 - Harnessing Benefits of Integrated Asset Modeling for Bottleneck Management of Large Offshore Facilities in the Matured Giant Oil Field by Yukito Nomura, ADNOC, et al. OTC 30970 - Optimizing Deepwater Rig Operations With Advanced Remotely Operated Vehicle Technology by Bernard McCoy Jr., TechnipFMC, et al. OTC 31089 - From Basic Engineering to Ramp-Up: The New Successful Execution Approach for Commissioning in Brazil by Paulino Bruno Santos, Petrobras, et al.

scholarly journals Abatement cost for selectivity negative emissions technology in power plant Indonesia with aim/end-use model

2021 ◽  
Vol 894 (1) ◽  
pp. 012011
Author(s):  
Z D Nurfajrin ◽  
B Satiyawira
Keyword(s):  
Emission Reduction ◽  
Energy Demand ◽  
Reduction Potential ◽  
Abatement Cost ◽  
Energy Sector ◽  
Cost Curve ◽  
Baseline Scenario ◽  
Low Carbon ◽  
Ghg Emission ◽  
End Use

Abstract The Indonesian government has followed up the Paris Agreement with Law No. 16 of 2016 by setting an ambitious emission reduction target of 29% by 2030, and this figure could even increase to 41% if supported by international assistance. In line with this, mitigation efforts are carried out in the energy sector. Especially in the energy sector, it can have a significant impact when compared to other sectors due to an increase in energy demand, rapid economic growth, and an increase in living standards that will push the rate of emission growth in the energy sector up to 6. 7% per year. The bottom-up AIM/end-use energy model can select the technologies in the energy sector that are optimal in reducing emissions and costs as a long-term strategy in developing national low-carbon technology. This model can use the Marginal Abatement Cost (MAC) approach to evaluate the potential for GHG emission reductions by adding a certain amount of costs for each selected technology in the target year compared to the reference technology in the baseline scenario. In this study, three scenarios were used as mitigation actions, namely CM1, CM2, CM3. The Abatement Cost Curve tools with an assumed optimum tax value of 100 USD/ton CO2eq, in the highest GHG emission reduction potential, are in the CM3 scenario, which has the most significant reduction potential, and the mitigation costs are not much different from other scenarios. For example, PLTU – supercritical, which can reduce a significant GHG of 37.39 Mtoe CO2eq with an emission reduction cost of -23.66 $/Mtoe CO2eq.

scholarly journals The Power to Change: A Brief Survey of The Wind Power’s Technological and Societal Potential, Barriers to Use, and Ways Forward

2019 ◽  
Vol 1 (1) ◽  
pp. p11
Author(s):  
Helen Kopnina
Keyword(s):  
Renewable Energy ◽  
Wind Energy ◽  
Wind Power ◽  
Energy Supply ◽  
Fossil Fuels ◽  
Energy Transition ◽  
Low Carbon ◽  
Close Relationship ◽  
The Government ◽  
Carbon Dependency

With the effects of climate change linked to the use of fossil fuels, as well as the prospect of their eventual depletion, becoming more noticeable, political establishment and society appear ready to switch towards using renewable energy. Solar power and wind power are considered to be the most significant source of global low-carbon energy supply. Wind energy continues to expand as it becomes cheaper and more technologically advanced. Yet, despite these expectations and developments, fossil fuels still comprise nine-tenths of the global commercial energy supply. In this article, the history, technology, and politics involved in the production and barriers to acceptance of wind energy will be explored. The central question is why, despite the problems associated with the use of fossil fuels, carbon dependency has not yet given way to the more ecologically benign forms of energy. Having briefly surveyed some literature on the role of political and corporate stakeholders, as well as theories relating to sociological and psychological factors responsible for the grassroots’ resistance (“not in my backyard” or NIMBYs) to renewable energy, the findings indicate that motivation for opposition to wind power varies. While the grassroots resistance is often fueled by the mistrust of the government, the governments’ reason for resisting renewable energy can be explained by their history of a close relationship with the industrial partners. This article develops an argument that understanding of various motivations for resistance at different stakeholder levels opens up space for better strategies for a successful energy transition.

scholarly journals Strategic perspectives of the oil and gas sector industrial development

2021 ◽  
Vol 14 (4) ◽  
pp. 369-374
Author(s):  
O. I. Kalinskiy ◽  
M. A. Afonasiev
Keyword(s):  
Carbon Capture ◽  
Industrial Development ◽  
Oil And Gas ◽  
Storage System ◽  
Carbon Capture And Storage ◽  
Energy Transition ◽  
Oil And Gas Industry ◽  
Low Carbon ◽  
Gas Industry ◽  
Oil And Gas Sector

The authors study oil and gas industry, its condition and perspective trends of industrial development. One of them involves applying low carbon and low cost technologies. The authors introduce new strategic imperatives in oil and gas sector to perform energy transition. They study the types of categories of perspective trends of the industry’s development: scaling up the development and implementation of a carbon capture and storage system, using low carbon raw materials, making it possible to take granular measurements. The article deals with perspectives of the oil and gas industry for the current year. The perspectives are built with the consideration of the previous year’s indicators and include all the past disasters and the dynamics of their solution and the results for the society. The authors show wider implementation of drones used for abnormal emissions of hydrogen sulfide to carry out distant monitoring, observations, inspections and preventive maintenance, change tracking, methane management, emergency response and material processing. The article describes precision drilling which reduces the risk of accidents, oil spills, fires and increases rate of penetration. The authors present microwave hydraulic fracturing which can become the next significant achievement in the perspective development of the industry.

scholarly journals The rise of renewables and energy transition: what adaptation strategy exists for oil companies and oil-exporting countries?

2019 ◽  
Vol 3 (1-2) ◽  
pp. 45-58 ◽  
Author(s):  
Bassam Fattouh ◽  
Rahmatallah Poudineh ◽  
Rob West
Keyword(s):  
Oil And Gas ◽  
Energy Transition ◽  
Energy System ◽  
Adaptation Strategy ◽  
Future Market ◽  
Low Carbon ◽  
Global Energy ◽  
Oil Companies ◽  
Main Challenge ◽  
Long Run

Abstract The energy landscape is changing rapidly with far-reaching implications for the global energy industry and actors, including oil companies and oil-exporting countries. These rapid changes introduce multidimensional uncertainty, the most important of which is the speed of the transition. While the transformation of the energy system is rapid in certain regions of the world, such as Europe, the speed of the global energy transition remains highly uncertain. It is also difficult to define the end game (which technology will win and what the final energy mix will be), as the outcome of transition is likely to vary across regions. In this context, oil companies are facing a strategic dilemma: attempt the risky transition to low-carbon technologies by moving beyond their core business or just focus on maximising their return from their hydrocarbon assets. We argue that, due to the high uncertainty, oil companies need to develop strategies that are likely to be successful under a wide set of possible future market conditions. Furthermore, the designed strategies need to be flexible and evolve quickly in response to anticipated changes in the market. For oil-exporting countries, there is no trade-off involved in renewable deployment as such investments can liberate oil and gas for export markets, improving the economics of domestic renewables projects. In the long run, however, the main challenge for many oil countries is economic and income diversification as this represents the ultimate safeguard against the energy transition. Whether or not these countries succeed in their goal of achieving a diversified economy and revenue base has implications for investment in the oil sector and oil prices and consequently for the speed of the global energy transition.

Financing Net Zero: Addressing Technology Risk for Financial Investments in the Energy Transition

2021 ◽  
Author(s):  
John Young ◽  
Myrtle Dawes ◽  
Andrew Smith ◽  
Keiren Lake ◽  
Keith Lawton
Keyword(s):  
Financial Risk ◽  
Oil And Gas ◽  
Energy Transition ◽  
Critical Element ◽  
Novel Technologies ◽  
Net Zero ◽  
Readiness Level ◽  
Private And Public ◽  
The Uk ◽  
The Right

Abstract This paper discusses the challenges that must be addressed to support the financing of novel technologies needed to achieve the United Kingdom's stated goal of achieving net zero emissions by 2050. It identifies practical steps that stakeholders providing investment funding, as well as technology developers can take to drive net zero outcomes. The paper represents the first time such a diverse group of independent industry professionals have come together to explore financing challenges associated with the Energy Transition. Apart from the diversity of the authors backgrounds and expertise, a survey was conducted of 121 respondents from across the energy landscape while preparing this paper. The survey was launched to an international audience, however, respondents were largely from the oil and gas and renewable industries from both the UK and Europe. The paper seeks to align investors in technological developments and will enable them to more accurately value the risks of novel technology deployment. This requires developers to present their solutions in a manner that investors can understand, and which enables financial risk to be more accurately aligned with the Technology Readiness Level (TRL) approach. Another critical element is making sure the rush to develop newer technologies to achieve Net Zero takes into account the right Environmental, Social, and Governance (ESG) considerations. The ultimate goal of the paper is to begin a dialogue that will eventually lead to a shift in the way that private and public institutions think about financing nascent technologies.

scholarly journals The political logics of clean energy transitions

2018 ◽  
Vol 20 (4) ◽  
pp. 492-522 ◽  
Author(s):  
Hanna Breetz ◽  
Matto Mildenberger ◽  
Leah Stokes
Keyword(s):  
Political Institutions ◽  
Fossil Fuels ◽  
New Technologies ◽  
Energy Transition ◽  
Clean Energy ◽  
Political Conflict ◽  
The Political ◽  
Cost Curve ◽  
Low Carbon ◽  
Experience Curves

AbstractTechnology costs and deployment rates, represented in experience curves, are typically seen as the main factors in the global clean energy transition from fossil fuels towards low-carbon energy sources. We argue that politics is the hidden dimension of technology experience curves, as it affects both costs and deployment. We draw from empirical analyses of diverse North American and European cases to describe patterns of political conflict surrounding clean energy adoption across a variety of technologies. Our analysis highlights that different political logics shape costs and deployment at different stages along the experience curve. The political institutions and conditions that nurture new technologies into economic winners are not always the same conditions that let incumbent technologies become economic losers. Thus, as the scale of technology adoption moves from niches towards systems, new political coalitions are necessary to push complementary system-wide technology. Since the cost curve is integrated globally, different countries can contribute to different steps in the transition as a function of their individual comparative political advantages.

scholarly journals An Outlook of Drilling Technologies and Innovations: Present Status and Future Trends

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4499
Author(s):  
Catalin Teodoriu ◽  
Opeyemi Bello
Keyword(s):  
Oil And Gas ◽  
Academic Research ◽  
Cost Effective ◽  
Operational Performance ◽  
Great Effort ◽  
Technological Advancement ◽  
The Past ◽  
Drilling Operations ◽  
Drilling System ◽  
Selection Of

The present article analyzes the technological advancement and innovations related to drilling operations. It covers the review of currently proven and emerging technologies that could mitigate the drilling operational deficiencies and instabilities that could hinder operational performance activities and the economic part of drilling development with great effort to minimize their environmental footprint. Drilling system design and operations are among the major aspects and cost-effective endeavors of the oil and gas industries, which are therefore technology dependent. They are also considered to be among the most expensive operations in the world, as they require huge expenses daily. Drilling success, depending on prevalent conditions, is a function of several general factors. These include the selection of the best technologies and tools, procedural optimization, concrete problem-solving, accurate prediction, and rapid decision-making. Consequently, any sorts of tools or advanced technologies that can improve the time-efficient operational and economic performance of drilling activities are essential and demanded. The paper provides a review of available technologies and developmental innovations based on both company-based and academic research-enabled drilling solutions over the past 5 years in the field of drilling systems and technological design. The paper further highlighted potential technologies that could be tapped in from other industries and could possibly be adopted by pushing the conventional boundaries of drilling operations.

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