The energy transition is shifting away from energy sources that rely on fossil fuels to energy sources that rely on renewable sources to lower CO2 emissions. The degree to which the global energy mix is moving and the speed at which it is doing so are, to a considerable extent, dependent on global dynamics and the reaction of societies to climate change.
Current Situation of Energy Transition
Due to economic incentives, social pressure, and new technological developments, a substantial amount in the direction of a future with reduced carbon emissions from energy sources has already been attained. This represents the progress that has already been made.
The energy transition will likely continue to be a priority for businesses for a longer period. The questioned businesses either had a strategy for the energy transition in place or were formulating a plan when asked.
Despite this, there is still a lot of work to be done. The shift to a future with reduced carbon emissions is a challenge for businesses, which must also work to preserve their competitive advantage in a market that is becoming increasingly global.
Energy Transition in the Oil and Gas Sector and its Effects
In a variety of different ways, the energy transition is helping to bring about a world with zero net emissions:
They are lowering the number of greenhouse gases produced by their operations through increased energy efficiency, less usage of flares, and better management of methane emissions, as well as increasing the percentage of their energy consumption that comes from low-carbon or renewable sources.
Carbon capture, utilization, and storage are one of the leading technologies that can enable large-scale, cost-effective mitigation of CO2 inside the industry and across other sectors. This can be accomplished through several different applications (CCUS). The oil and gas industry is responsible for 24 of the large-scale carbon capture and storage projects that will be operational in 2020. A significant number of these initiatives are established through partnerships between the private sector and public agencies.
Natural gas has lower emissions than other fossil fuels. It is also a source of energy that can be dispatched as needed. Suppose methane emissions can be regulated across the value chain. In that case, natural gas will be a key component of the energy transition. The industry focuses on scaling up cutting-edge technology through several cross-sector projects to enable global and local detection, measurement, and resolution of methane emissions.
Renewable Energy Industry
A rising number of oil and gas corporations are contributing to the expansion of the renewable energy industry. These businesses have been increasing their use of, investment in, and production of energy through various forms of renewable technology, including wind, solar power, and biofuel.
Organizations Working on Emissions
Members of IPIECA have vowed to do everything they can to contribute to a future with zero net emissions. More than half of the corporate members of IPIECA have made a public commitment to reaching net-zero emissions and have released plans detailing how they intend to accomplish this objective.
Steps Adopted by the Oil and Gas Sector
We are making strides toward a future with lower levels of carbon emissions, which has become an essential consideration in developing all initiatives for the years to come.
Even though there is widespread debate among stakeholders over the necessary change rate and how we could get there, there appears to be a broad unity in the pursuit of accomplishing this long-term objective. Because of factors such as an expanding global population and growing standards of living, experts believe that by 2040, worldwide energy consumption might rise by as much as a third.
This implies concentrating on “advantaged” barrels in the case of oil and gas, which are not only the cheapest but also pose the least amount of risk and produce the fewest emissions. In addition, as a result of the decline in the price of oil, there is a greater sense of urgency to enhance the efficiency of the oil and gas production process.
The future we all see is one in which there is clean, abundant, reliable and inexpensive renewable energy for everyone, yet here is where the agreement among people stops. The most effective way to get there, the needed rate of change, and the role that oil and gas businesses will play in the future are all topics that are the subject of a wide variety of divergent points of view.
We may anticipate seeing a significant increase in the number of cases in which businesses investigate the following:
1. Utilization of Already Available Data
Utilization of Data Improved McKinsey estimated that the oil and gas business had a performance gap of $200 billion. According to McKinsey’s findings, “on average, offshore platforms run at just 77% of maximum production capacity.” As a result, it is even more important to use the already available data better.
2. Cloud Computing
Developing Digital Oilfields By utilizing cloud computing and large amounts of data, the digital oilfield enables all operational data to be monitored, analyzed, and utilized in real-time. This ultimately results in decisions that are safer and more environmentally friendly.
3. Usage of Micro-refinery Machines
An increasing number of businesses are turning spent oil into diesel fuel by utilizing small-scale micro-refinery machines that process waste oil. This process helps generate fuel for ongoing operations. It is also an alternative to more typical ways of oil disposal that is reasonably economical.
4. Improved Methods of Water Recycling
Recycling of Water Oil and gas businesses are always looking for better, more efficient ways to recycle and reuse their water. Companies strive to use 100% non-potable water by developing improved methods of filtration and oxidation, in addition to advanced chemical-free water treatment solutions, to eliminate bacterial contaminants such as sulfate-reducing and iron-oxidizing bacteria. This is part of a trend that has been growing in recent years.
A dependable method of recycling and reusing generated water is one of the most effective ways to cut down considerably on operational expenses. The following are some ideas that might help you move in this direction:
- Supplying wildlife and cattle ponds placed close to drill sites with water that has been treated.
- Produced water is also utilized as a strategy for preventing the formation of dust on unpaved roads.
- After the generated water has been cleaned using a method such as reverse osmosis, the purified water can be added to drinking water sources using a technique called aquifer soil treatment.
5. Sustainable Energy Technology
The largest oil firms worldwide are increasing their investments in sustainable energy projects. The overriding objective of lowering carbon emissions is concurrently increasing interest in and demand for environmentally friendly technology. However, this is the beginning of the narrative of how energy may be transformed. There is a discernible transition taking place currently from biofuels to digital energy, and this suggests that the future offers far greater potential.
Nowadays, energy transition is confined to only the energy-making industries like oil and gas or electrical industries. But suppose we tend to have an eagle-eye overview of the whole scenario. In that case, we can all see that it is related to specific industries and the needs of our environment. To maintain the sustainability of fossil fuels on earth, we all need to look forward to these energy transition steps taken y these industries.
Talking about the oil and gas industries specifically, these industries have achieved a huge milestone by taking practical steps toward the energy transition. Implications of these steps are not only going to benefit them, and rather it is going to benefit the environment as well. The sustainability of usable and non-reusable resources is a major concern for the oil and gas industries. In this way, the implication of steps regarding the energy transition will also benefit the oil and gas sector in the long run.
What actions can we take to ensure that our oil consumption is as environmentally friendly as it can be?
- Make sure you are well-informed on the oil and gas business.
- Refrain from making purchases that include plastics.
- Reduce the amount of power you consume in your house.
- Decrease the number of miles you travel each week.
- Set aside some money and investigate installing renewable energy solutions in your own house.
- Go for cosmetic products that do not include any petroleum.
What are the potential remedies for the current oil crisis?
Some kinds of energy are renewable, while others do not contribute to greenhouse gas emissions, like petroleum products. Alternative energy sources such as solar, wind, geothermal, and renewable sources are clean and sustainable energy options.