Guest Editorial: Brownfield Optimization The Key To Unlocking Sustainable Oil and Gas?

Abstract

The topic of sustainability within the oil and gas industry has dominated news agendas in recent years. As ‘Net Zero by 2050’ goals loom closer, the sector is under greater pressure than ever to decarbonize operations and source oil and gas via more sustainable methods. With the energy transition continuing at pace, the growth of renewable energy has been exponential. Energy sources such as nuclear and wind are set to account for a greater portion of the energy mix. Renewables expenditure is also expected to double over the next 10 years to more than $1,300 billion per year, and grid expenditure is likely to exceed $1,000 billion per year in 2030. However, oil and gas will undoubtedly play a crucial role in meeting global energy demand for the foreseeable future. A recent industry report highlighted that conventional hydrocarbons are set to comprise 49% of the energy mix in 2050, emphasizing the sustained requirement for traditional hydrocarbons. It is no secret the oil and gas sector is a high producer of carbon emissions, and according to the International Energy Agency, global production, transportation, and processing of oil and gas emitted the equivalent of 5.1 billion tons of CO2 in 2022. That’s almost 15% of total energy-related greenhouse gas emissions. So, how do we as an industry continue to extract this much needed energy source in a more-sustainable manner? Methods to curb this emission are already in practice, with operators utilizing new technology to reduce waste-gas production, return the gas to on-site product streams, and reinject methane into reservoirs. A notable example came from ExxonMobil in January of this year with the company announcing it had stopped routine flaring of natural gas from production in the top US shale basin, using compressors to push natural gas to a pipeline. It has also allocated $17 billion through 2027 to lower its greenhouse gas emissions globally. Electrification is also a hot topic, with operators investigating methodologies for how to reduce emissions from offshore assets. bp, Equinor, and Ithaca Energy recently signed a memorandum of understanding to explore electrification options for their offshore production facilities in the West of Shetland area in the North Sea. Electrification solutions could include power from shore, potentially from onshore wind, or from offshore wind. Full electrification would require in the region of 200 MW of power. If successful, the fields would become the first oil and gas developments on the UK Continental Shelf to be powered by electricity delivering a fully renewable solution. These latest industry moves are bold. They certainly show that much-needed action is now taking place and that industry is responding to social and environmental pressures to make changes.