Remya P, Senior Electrical, Control and Instrumentation (EC&I) Design Engineer, Nuclear and Power Business, GTC, AtkinsRealis, India.

The journey to Net Zero has several obstacles. How are the oil & gas companies preparing to face the evolving challenges in this energy transition?

The journey to Net Zero presents several obstacles for oil and gas companies, which contribute significantly to global greenhouse gas emissions. These companies are responsible for around 15% of total energy-related emissions, equivalent to 5.1 billion tonnes of greenhouse gases. This includes emissions from extraction, processing, and transportation. Additionally, the use of oil and gas products results in further emissions, contributing to around 40% of total energy-related emissions.

To tackle these challenges and achieve a net zero future, oil and gas companies are implementing several key changes:

1. Carbon Capture and Storage (CCS): Investing in CCS technologies to capture and store CO₂ emissions from industrial processes and power generation.

2. Electrification of Upstream Facilities: Electrifying upstream facilities and using renewable electricity for operations to significantly lower carbon emissions.

3. Investment in Renewable Energy: Increasing investments in renewable energy sources such as wind, solar, and bioenergy to diversify energy portfolios and reduce reliance on fossil fuels.

4. Decarbonisation of Operations: Adopting cleaner technologies, improving energy efficiency, and minimising methane leaks to reduce emissions from operations.

5. Research and Development: Investing in research and development to create new solutions for cleaner energy production and consumption.

Despite these efforts, several obstacles remain:

• Financial Burden: Significant upfront investment is required, which can be challenging for small and medium-sized enterprises (SMEs).

• Technological Limitations: Access to and implementation of advanced technologies can be difficult due to a lack of necessary expertise or resources.

• Supply Chain Emissions: Managing and reducing emissions across the entire supply chain is complex and requires collaboration with suppliers.

• Coordination Challenges: Effective decarbonisation requires coordination across all levels of an organisation.

• Data and Measurement: Accurate carbon accounting and emissions data are crucial for making informed decisions, but many businesses lack the necessary tools and systems.

Addressing these obstacles requires a comprehensive approach, including financial support, robust data systems, regulatory clarity, and a culture of sustainability within the organisation. By overcoming these challenges, oil and gas companies can contribute to a sustainable and low-carbon future.

What policies or regulations could be most effective in driving decarbonisation in the industry in general, the oil & gas industry in particular?

Several policies and regulations that could effectively drive decarbonisation in the oil and gas industry include:

1. Carbon Pricing: Implementing carbon taxes or cap-and-trade systems is crucial. These mechanisms create financial incentives for companies to reduce their emissions, making it economically viable to lower their carbon footprint.

2. Emissions Standards: Setting stringent emissions standards for industrial processes and transportation is essential. These standards compel companies to adopt cleaner technologies and practices, ensuring that emissions are minimised.

3. Subsidies and Incentives: Providing financial support for renewable energy projects, energy efficiency improvements, and carbon capture and storage (CCS) technologies can significantly encourage investment in sustainable solutions. These subsidies make it easier for companies to transition to greener practices.

4. Methane Regulations: Establishing regulations specifically targeting methane emissions from oil and gas operations is vital. Methane is a potent greenhouse gas, and reducing its emissions can have a substantial impact on overall decarbonisation efforts.

5. Renewable Energy Mandates: Mandating a certain percentage of energy to come from renewable sources drives the transition towards cleaner energy. This ensures that companies diversify their energy portfolios and reduce reliance on fossil fuels.

6. Research and Development Funding: Allocating funds for clean energy technologies accelerates innovation and the adoption of sustainable solutions. Investing in R&D is crucial for developing new technologies that can further reduce emissions.

7. Transparency Requirements: Requiring companies to report their emissions and progress towards decarbonisation goals enhances accountability. Transparency in reporting ensures that companies are held responsible for their environmental impact and encourages continuous improvement.

Countries like Sweden, the UK, Germany, and China, along with companies like BP, Shell, ExxonMobil, and TotalEnergies, are leading the way by implementing these policies and strategies. Their efforts are paving the path towards a sustainable and low-carbon future.

Which emerging technologies show the most promise for reducing emissions in oil & gas operations? How feasible is hydrogen that is seen as a possible solution?

Decentralising the existing renewable energy sources like wind energy, solar energy, and nuclear energy-based businesses will reduce the dependency on oil and gas for energy and running businesses. Fusion-based energy production, if successfully commercialised from the current experimental setup, will also be efficient and promising for reducing dependency on the oil and gas industry, and thereby help in reducing carbon emissions. Along with these, Carbon Capture and Storage (CCS) technologies capture CO₂ emissions from industrial sources and store them underground, preventing them from entering the atmosphere. CCS is promising for oil and gas (O&G) companies. Along with these, methane leak detection and prevention methods, using digital analytics to optimise and predict issues and identify inefficiencies, will be helpful to implement corrective measures promptly.

Hydrogen is a promising alternative for reducing carbon emissions in the oil and gas industry or any industry that is trying to shift from the conventional method of energy production, for that matter. The versatility of uses hydrogen provides within the O&G industry is one of the main reasons that makes it an attractive option. In addition to this, the O&G industry has extensive experience in handling gases and managing large-scale infrastructure projects, and hence this expertise is transferable to the various stages of hydrogen production, storage, and distribution, making the transition smoother and more cost-effective.

What are the key strategies for reducing emissions in upstream, midstream, and downstream operations?

Before defining the key strategies for reducing emissions in the operations, let’s assess the main contributing factors/processes with regard to the carbon emissions:

Emissions are primarily due to the use of diesel engines and other equipment during exploration and drilling processes. Additionally, the extraction and initial processing of oil and gas involve significant energy consumption, leading to methane emissions through venting, flaring, and fugitive emissions.

The main contributors to carbon emissions are fuel combustion and methane leaks from pipelines during transportation. Emissions also arise from evaporation and leaks during the storage phase. The energy required for compressing and pumping natural gas and oil through pipelines is often dependent on non-renewable sources, leading to CO₂ emissions. Refining processes are energy-intensive and produce significant CO₂ emissions. Additionally, emissions occur during the distribution of refined products to end-users. Finally, the major source of CO₂ emissions is from consumer activities, such as vehicles, industrial processes, and power plants.

Key strategies in the upstream segment include the use of Carbon Capture and Storage (CCS) technologies to capture CO₂ emissions from extraction and processing sites and store them underground, replacing diesel-powered equipment with electric alternatives powered by renewable energy sources, detecting methane leaks using advanced sensors, and optimising drilling techniques and streamlining operations to reduce energy waste and emissions.

In the midstream segment, strategies such as regular inspections and maintenance to prevent leaks and ensure efficient transportation, using renewable energy sources to power compression and pumping stations, employing real-time monitoring systems to detect and address emissions promptly, and enhancing storage facilities to minimise evaporation and leaks would be beneficial.

In the downstream segment, strategies to improve energy efficiency in refining processes, transition to lower-carbon fuels and feedstocks, scale up CCS to capture CO₂ emissions in refining operations, and promote energy-efficient products and practices among consumers to reduce emissions from the combustion of oil and gas products would be beneficial.

What incentives or funding mechanisms are available to support the transition to net zero?

To support the transition to Net Zero, the oil and gas sector can leverage various incentives and funding mechanisms:

• Green Bonds: These can be used to raise capital for low-carbon and environmental projects, such as renewable energy and CCS.

• Government Subsidies and Tax Breaks: Financial support from the government for companies investing in decarbonisation technologies, including hydrogen and CCS.

• Public-Private Partnerships: Collaboration between the government and industry to share the costs of decarbonisation and scale low-carbon technologies to help ease the burden on companies.

What role do cross-industry partnerships (e.g., with renewables and carbon markets) play in decarbonisation efforts?

Cross-industry partnerships are essential for the decarbonisation process. Enabling collaboration between oil and gas companies, renewables, technology firms, and carbon markets is crucial for a sustainable future. These partnerships drive knowledge sharing, technological advancements, and new market opportunities for low-carbon solutions. Integrating offshore wind farms with oil platforms can provide low-carbon power to both sectors. Companies can offset their emissions by investing in carbon credits and carbon removal technologies in the carbon markets.

In summary, a combination of strategic investments, regulatory support, and technological innovation will help the oil and gas sector reduce its carbon footprint, with cross-industry collaboration playing a key role in overcoming decarbonisation challenges.

(The views expressed in interviews are personal, not necessarily of the organisations represented)

Remya P holds a degree in Electrical and Electronics Engineering from Government Engineering College, Trivandrum, and a master's in Instrumentation and Control Systems from NIT Calicut. With 10.5+ years of experience, she has spent 3.5+ years at AtkinsRealis (Global Technology Centre (GTC)) in Nuclear & Power projects and 7 years at L&T Construction in Nuclear, Ports, and ELV System design. At Atkins, she leads and reviews C&I designs, PLC/relay-based control systems, and predictive maintenance templates. A Digital Transformation champion, she aligns digital capabilities with engineering needs.

Major clients worked for include UKAEA, EDF, NAWAH, British Steel, NWKG Germany, ITER-IN, Cochin Shipyard Limited, NPCIL India, MAHSR (High-Speed Rail) India, Cochin Naval Base, RDE Indonesia.

Remya has authored two international research papers in Networked Controlled Systems in IFAC-online Elsevier and IEEE international conferences. She is a member of IET India and is preparing for an IET Chartership (UK). She is also a certified Exida-India Functional Safety Practitioner (FSP).

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