Decarbonizing the Upstream Oil and Gas Industry – Assessing Trends, Technologies, Challenges and Case Studies

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Decarbonizing the Upstream Oil and Gas Industry Report Overview

According to IEA, oil and gas production, transport, and processing resulted in 5.1 billion tonnes (Gt) CO2-eq in 2022. Accounting for and addressing Scope 1 and 2 emissions from oil and gas is comparatively easier than tackling Scope 3 emissions. However, identifying the most impactful intervention will be key to reducing the total GHG emissions in 2030. Electrification in the upstream sector will help to significantly reduce operational emissions, however it is still in the early phases of development within upstream oil and gas operations. In 2023, gas flaring released approximately 381 million tonnes of carbon dioxide equivalents (CO2e), including a substantial amount of methane, a potent greenhouse gas. This was equivalent to adding five million cars to the roads

The ‘Decarbonizing the Upstream oil and gas Industry – Assessing Trends, Technologies, Challenges, and Case Studies’ report provides an overview of the upstream oil and gas industry including production and carbon emission. The report also covers the technologies for achieving carbon reduction as well as the challenges faced while decarbonizing the industry. It also gives insights into the decarbonization process of both the mining and manufacturing of upstream oil and gas.

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Decarbonizing Technologies ·       Improving Efficiencies

·       Flaring Mitigation

·       Electrification

·       CCS

·       Renewables

Leading Players ·       TotalEnergies

·       Shell

·       BP

·       Equinor

·       Petrobras

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Upstream Oil and Gas Industry – Decarbonizing Technologies

The top five energy transition interventions for the upstream oil and gas industry are improving efficiencies, flaring mitigation, electrification, CCS, and renewables.

Improving Efficiencies: Innovation and modernization of equipment to increase efficiency and prevent leakages. Efficiency improvements would reduce the energy demand for upstream equipment and processes, reducing the emissions intensity of operations. It upgrades to equipment including adopting digital solutions minimizes the risk of equipment shutdown and leakage events.

Upstream Oil and Gas Industry –  Decarbonizing Technologies

Upstream Oil and Gas Industry –  Decarbonizing Technologies

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Decarbonizing the Upstream Oil and Gas Industry – Key Challenges

  • The cost of raw materials and availability of skilled technicians remain a barrier to installation of energy transition technologies in the upstream oil and gas.
  • Decarbonization costs will reduce as renewable energy takes up a greater share of the global power generation mix. However, retrofitting older production sites with carbon capture technology will remain expensive.

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Decarbonizing the Upstream oil and gas Industry - Competitive Landscape

A few companies associated with the decarbonization of the upstream oil and gas industry are:

  • TotalEnergies
  • Shell
  • BP
  • Equinor
  • Petrobras

Total Energies have active and upcoming capacities of about 26.8GW for offshore wind, 14.0GW for onshore wind, and 16.9GW for solar PV projects. It aims to achieve 100 gigawatts of gross installed renewable power generation capacity by 2030.

Decarbonization of Upstream oil and gas Industry Analysis by Companies

Decarbonization of Upstream oil and gas Industry Analysis by Companies

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Scope

Identifies the decarbonization opportunities in the upstream oil and gas sector.

Discusses long-term benefits of decarbonization avenues such as CCS, electrification, and shifting towards renewable power.

Discusses challenges to the decarbonization efforts being taken by oil and gas companies in the upstream sector.

Discusses case studies of oil and gas companies in decarbonizing upstream sector.

Evaluates competitive position of oil and gas companies in their decarbonization efforts.

Key Highlights

  • Electrification and other energy transition technologies are highly dependent on readily accessible renewable electricity, which can encounter permitting issues and grid connection delays.
  • Streamlining inefficient processes in the upstream sector of the oil and gas industry can be achieved through machinery upgrades, process optimization and digitalization.
  • In the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario, the emissions intensity of oil and gas operations falls by 50% by the end of the decade.

Reasons to Buy

  • Evaluates decarbonization opportunities for oil and gas companies in the upstream oil and gas sector.
  • Presents oil and gas case studies for upstream decarbonization.
  • Benchmarks select oil and gas companies on the basis of their decarbonization efforts.

Table of Contents

Executive Summary

Upstream carbon emissions

Oil and gas production outlook

Upstream sector’s progress towards net-zero

Company emission reduction targets

Introduction to decarbonization technologies

Five key decarbonisation technologies for the upstream sector

Assessing decarbonization technologies

Macroeconomic challenges that will pose a barrier to decarbonization

Improving upstream process efficiency

Upstream oil and gas segments

Improving process efficiency – examples

Electrification in the upstream sector

Electrification opportunities

Shift towards renewable energy

Renewables growth outlook

Oil and gas companies: renewables commitments

Gas flaring mitigation

Impact on climate change

Gas flaring data

Mitigation strategies and commitments

Gas flaring targets of leading oil and gas companies

CCS in upstream sector

CCS capacity in upstream oil and gas

Examples of oil and gas companies using CCS technology

Involvement of oil and gas companies in global upcoming CCS capacities

Key takeaways

Frequently asked questions

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