Significance Of The Oil And Gas Industry For The Energy Transition

The oil and gas industry has the experience, skills, and understanding to develop and scale up hydrogen production from natural gas as a low-carbon, low-cost energy source.

Fremont, CA: Transforming the energy system to meet the growing energy requirement of a rising global population – set to achieve 10 billion by 2035 – while reducing global discharge in line with the Paris Agreement goals will need a broad energy mix unparalleled collaboration across every sector and country.

The oil and gas industry plays a considerable role in the energy transition by presenting the affordable and dependable energy required to fuel fair progress and enhanced living conditions for all, generating this energy with lessening emissions to help a net-zero world.

It is conducive to a net-zero future in several ways:

Lessening greenhouse gas emissions from their activities with energy efficiency, flare diminution, and addressing methane emissions, as well as gradually powering their operations with low-carbon or renewable energy sources. Several companies are also supporting their consumers to lessen their emissions through the greater use of natural gas, improved efficiencies in engine-fuel systems, and the development of low-carbon mobility technologies like electric vehicles, liquefied natural gas, biofuels, ammonia, and hydrogen fuel cells.

Hydrogen will be a major enabler of the energy transition. Low-carbon hydrogen can support hard-to-abate sectors such as heavy industry and heavy-duty transport, commonly the drivers of evolving economies, to lower emissions and offer large-scale, long-term backup for renewables. The oil and gas industry has the experience, skills, and understanding to develop and scale up hydrogen production from natural gas as a low-carbon, low-cost energy source.

One of the major technologies that can allow large-scale, cost-effective reduction of CO2 within the industry and across other areas is carbon capture, utilization, and storage (CCUS). Of the 26 large-scale CCUS projects in 2020, 24 are akin to the oil and gas sector. Most of these projects are developed through industry-government cooperation.

With emissions lesser than other fossil fuels and a prompt energy source, natural gas will be a crucial element of the energy changeover if methane emissions can be governed across the value chain. The industry is functioning through numerous cross-sector initiatives to scale up cutting-edge technology to support global and local methane emission detection, quantification, and resolution.

A growing number of oil and gas companies are part of the development in the renewable energy sector and have been increased through investing in and producing energy through renewable technologies, particularly wind, solar power, and biofuel.