Decarbonisation - Act Now: An Accessible Pathway for All Upstream Operators to Reduce Direct Emissions
Authors: Jones Sam , Joyce Adam , Balasubramanian Nikhil 
Published: September 2021

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.