Guest Editorial: Pathways to Transforming Energy Demand in the Oil and Gas Sector
Authors: Nunoo Nii Ahele 
Published: February 2025

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The energy world is rapidly changing. The pressure to address climate change, ensure reliable energy supplies, and manage costs is greater than ever.

During this shift, the oil and gas industry, one of the world’s biggest emitters of greenhouse gases, has an opportunity to take the lead in transforming energy use. With its global resources and expertise, the sector could become a key player in making the energy transition sustainable and efficient.

From a wider view, a new study from the World Economic Forum found that cutting energy use by 31% could save trillions of dollars each year while significantly reducing environmental harm.

Oil and gas companies, given their scale and impact, are well-positioned to take advantage of this opportunity, but it will require innovations both big and small along with incremental changes in day-to-day operations.

One of the most effective ways to reduce energy demand is to focus on energy efficiency. This may mean implementing energy management systems across facilities to drive significant reductions in energy use.

Chevron, for example, has saved millions of dollars by introducing energy management systems in its refineries that optimize energy consumption and reduce greenhouse gas emissions. Such systems provide real-time data that allow companies to make informed decisions that save energy and cost and could similarly be applied to a variety of upstream facilities in the field.

Technology advancements such as this one are crucial, but smaller changes can also have a big impact. For instance, reducing business travel in favor of virtual meetings can help companies reduce carbon emissions and operational costs.

Digitalization and AI: The Future of Oil and Gas

Digitalization and artificial intelligence (AI) are already found throughout the oil and gas value chain and offer new ways to optimize operations and reduce energy consumption.

AI can be used for predictive maintenance to help companies reduce downtime, extend machinery life, and eliminate unnecessary repairs.

In addition, companies such as Shell are leveraging AI to monitor equipment in real time. Adopters claim the advanced software is preventing breakdowns and reducing the need for on-site maintenance, reducing the knock-on effect of increasing energy use from inefficient operations.

Advanced monitoring and automation also allow for more tasks to be performed remotely, reducing the need for travel to isolated or offshore locations. The adoption of such solutions results in measurable energy savings, and for large-scale operations, even small operational shifts are quickly translated into meaningful gains.

The Role of Hybrid Work in Sustainability

The shift toward hybrid work is one of the most significant, yet often overlooked, incremental changes.

The COVID-19 pandemic demonstrated that many oil and gas workers could operate remotely without sacrificing productivity. Some companies, such as BP and Shell, have adopted hybrid work models where employees split time between the office and home.

This approach reduces the need for commuting and cuts the energy demands of running large office spaces at full capacity. Companies can significantly lower their energy consumption and emissions with this hybrid model, which maximizes in-office time while allowing the convenience of remote work on predetermined days.