The oil and gas industry's role in shaping a sustainable global energy landscape is undeniable, says Vijay Mathew.

The oil and gas industry, historically the bedrock of the global energy ecosystem, now finds itself at an unprecedented crossroads. As of 2024, the industry is pivotal not only to the generation of global energy supplies but also bears a significant responsibility for the escalation in carbon emissions. In 2024, global carbon dioxide (CO₂) emissions soared to a new height of 41.6 billion tonnes, with the combustion of fossil fuels alone contributing 37.4 billion tonnes. These stark figures not only highlight the critical role of the industry in global warming but also frames the urgent imperative for transformative action to achieve alignment with the Paris Agreement’s climate objectives.

In a similar article in Industrial Automation, published in 2024, Frost & Sullivan dissected foundational decarbonisation strategies within the sector, such as automation, the hydrogen economy, electrification, carbon capture, utilisation and storage (CCUS), and emissions management. These strategies are indispensable; however, the industry must now embrace innovative practices and collaborative approaches to enhance and expand upon these foundational strategies, facilitating more substantial emissions reductions and promoting sustainable growth.

The Oil & Gas Decarbonisation Charter (OGDC): A catalyst for change

In response to this exigency, the Oil & Gas Decarbonisation Charter (OGDC) was inaugurated at COP28 in 2023, marking a collective pledge by over fifty of the world's leading oil and gas firms to intensify climate action. This Charter is not merely aspirational but sets a concrete framework to measure, prioritise, and enhance transparency on emissions reduction efforts across the industry. A notable development in 2024 was the accession of PetroChina, Asia’s largest oil and gas producer, to the OGDC—a move that significantly magnifies the Charter’s scope and potential impact. The OGDC's strategy emphasizes not just adherence to established decarbonisation methods but also the exploration and implementation of cutting-edge technologies and collaborative approaches that could redefine sustainable practices across the global energy landscape.

Innovative pathways to decarbonisation in the oil and gas industry

Advanced Blockchain Applications: Enhancing Transparency and Efficiency

Major oil companies such as Shell and BP are pioneering the use of blockchain technology to revolutionise emissions tracking and enhance supply chain transparency. Shell's blockchain platform, developed in partnership with IBM, is specifically designed to authenticate the biofuel production process from start to finish, ensuring each step meets sustainability standards. This system not only simplifies the complexity of supply chain management but also establishes verifiable proof of the environmental integrity of Shell's products, directly contributing to increased consumer and regulatory trust.

Cross-Sector Alliances and Startup Collaborations: Catalysing Sustainable Innovation

The collaboration between ExxonMobil and Global Thermostat is a prime example of how strategic partnerships can accelerate the development of innovative carbon capture technologies. Recently, this partnership has been expanded following a year of fruitful technical evaluations, demonstrating a renewed commitment to advancing Direct Air Capture (DAC) technology. This technology, which captures atmospheric CO2 directly from the air, stands out from traditional carbon capture methods that typically target point source emissions. This offers flexibility in deployment and the potential to significantly reduce atmospheric CO2 levels.

Industrial Symbiosis in Action: The Kalundborg Eco-Industrial Park Model

The Kalundborg Eco-Industrial Park in Denmark exemplifies how the oil and gas industry can implement industrial symbiosis effectively. At this facility, Equinor ASA's refinery works synergistically with entities like a power station and a pharmaceutical plant, leading to optimise resource utilisation and minimise waste. Key exchanges include using refinery by-products such as sulfur, which is processed into gypsum for plasterboard production, and transforming waste heat into communal district heating, thereby enhancing energy efficiency and reducing carbon emissions across multiple sectors.

AI-Driven Predictive Maintenance: Setting New Standards in Operational Efficiency

AI and machine learning are transforming predictive maintenance within the oil and gas industry. BP, for instance, utilises AI algorithms in conjunction with advanced sensor technology to anticipate maintenance needs on its offshore oil platforms. This proactive approach allows for timely interventions before equipment failures occur, significantly reducing downtime and associated emissions. The AI system analyses data from sensors to predict equipment malfunctions, enabling maintenance teams to address issues before they escalate, thereby optimising operational efficiency and sustainability.

Conclusion

As we look to the future, the oil and gas industry's role in shaping a sustainable global energy landscape is undeniable. The collaborative and innovative approaches discussed—from advanced blockchain applications to strategic cross-sector partnerships and industrial symbiosis—represent more than mere compliance or market adaptation. They signify a profound transformation within the industry, aligning with broader societal and environmental objectives.

The continuous evolution of technologies such as AI-driven predictive maintenance and Direct Air Capture, coupled with the commitment exemplified by initiatives like the Oil & Gas Decarbonisation Charter, underscores a significant shift. The industry is not only acknowledging its responsibility but is also actively deploying solutions that could fundamentally alter its impact on the planet. This proactive stance is crucial not just for mitigating the effects of climate change but also for ensuring that the industry remains vital and relevant in an increasingly carbon-constrained world.

Reference

1. https://industrialautomationindia.in/articles/decarbonisation-and-innovation-transforming-the-oil-gas-industry

Vijay Mathew is Director, Industrial Technologies, at Frost & Sullivan. With over 18 years of experience, Vijay is a seasoned advisor known for providing strategic, unbiased, and objective advisory services across a variety of industries. His areas of expertise include automation, process control, industrial sensors and instrumentation, and electronic test and measurement. Always on the forefront of technological evolution, Vijay is committed to tracking and understanding the latest trends in Industry 4.0, data analytics, predictive maintenance, smart factories, and blockchain technologies.