Decarbonizing the Downstream Oil and Gas Industry
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Decarbonizing the Downstream Oil and Gas Industry Report Overview
The downstream sector contributed to approximately 41% of the total emissions in oil operations in 2022. The integral nature of carbon to its processes means it has fewer options for decarbonization, making it an important focus area. Electrification can be used within the downstream sector to help reduce operational emissions and energy consumption as well as to improve operations. However, electrification is not easily applicable to high-energy intensity processes and needs to be adopted in combination with other energy transition technologies.
The ‘Decarbonizing the Downstream Oil and Gas Industry’ report identifies the requirements for meeting emissions targets and introduces the energy transition interventions most suited to decarbonizing the downstream oil and gas industry. The measures discussed include process efficiency, low-carbon hydrogen, electrification, carbon capture, and alternative feedstocks.
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| Decarbonization Technologies | · Process Optimization
· Low-Carbon Hydrogen · CCS · Electrification · Alternative Feedstock |
| Leading Companies | · BP
· Shell · Chevron · Exxon Mobil · TotalEnergies |
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Downstream Oil and Gas Industry - Decarbonization Technologies
The decarbonization technologies in the downstream oil and gas industry are process optimization, low-carbon hydrogen, CCS, electrification, and alternative feedstock. Emission reduction within the downstream sector can take place by increasing efficiencies as well as by diversifying products into low-carbon refined and chemical products through technology adoption. However, all of these measures will carry a significant cost implication.
Low-Carbon Hydrogen: Using low-carbon hydrogen will help downstream companies reduce their emission footprint by averting the embedded emissions from grey hydrogen. The adoption of blue hydrogen would require downstream companies to apply a CCUS retrofit to their existing grey hydrogen production setup.
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Decarbonizing the Downstream Oil and Gas Industry - Optimizing Downstream Processes
Downstream oil and gas operations add significant carbon emissions to the overall oil and gas value chain. Streamlining inefficient processes in the downstream sector of the oil and gas industry can be achieved through machinery upgrades and digitalization. Digitalization through combinations of technologies such as the Internet of Things (IoT) and artificial intelligence are enabling the oil and gas industry to improve productivity and profitability by identifying the inefficiencies within operations. These technologies can also deliver actionable insights to extend the life of an existing oil and gas asset which will be key in managing aging assets.
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Decarbonizing the Downstream Oil and Gas Industry – Competitive Landscape
A few companies involved in decarbonizing the downstream oil and gas industry are:
- BP
- Shell
- Chevron
- Exxon Mobil
- TotalEnergies
BP, Shell, and TotalEnergies aim to achieve net zero emissions by 2050. Additionally, Exxon Mobil aspires to achieve scope 1 and 2 net zero emissions by 20250.
Decarbonizing the Downstream Oil and Gas Industry Analysis by Companies
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Scope
- Identifies the decarbonization opportunities in the downstream oil and gas sector.
- Discusses long-term benefits of decarbonization avenues such as low-carbon hydrogen, electrification, carbon capture, and alternative feedstocks.
- Discusses challenges to the decarbonization efforts being taken by oil and gas companies in the downstream sector.
- Discusses case studies of oil and gas companies in decarbonizing the downstream sector.
- Evaluates competitive position of oil and gas companies in their decarbonization efforts.
Reasons to Buy
- Evaluates decarbonization opportunities for oil and gas companies in the downstream oil and gas sector.
- Presents oil and gas case studies for downstream decarbonization.
- Benchmarks select oil and gas companies on the basis of their decarbonization efforts.
Table of Contents
Frequently asked questions
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What are the decarbonization technologies in the downstream oil and gas industry?
The decarbonization technologies in the downstream oil and gas industry are process optimization, low-carbon hydrogen, CCS, electrification, and alternative feedstock.
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Which companies are associated with decarbonizing the downstream oil and gas industry?
A few companies associated with decarbonizing the downstream oil and gas industry are BP, Shell, Chevron, Exxon Mobil, and TotalEnergies.
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Which companies aim to achieve net zero emissions by 2050?
BP, Shell, and TotalEnergies aim to achieve net zero emissions by 2050.
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Which technologies are enabling the oil and gas industry to improve productivity and profitability?
Internet of Things (IoT) and artificial intelligence are enabling the oil and gas industry to improve productivity and profitability.
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