Energy Transition

New research from Rystad Energy highlights the potential of electrification in reducing emissions in the upstream oil and gas industry

Converting upstream oil and gas production facilities to run on electricity powered by renewables or natural gas that would otherwise be flared could cut more than 80% of associated emissions, according to Rystad Energy.

The energy consultancy notes the success of Norway in reducing emissions from rigs and other assets by 86% through electrification, with plans to cut emissions from the continental shelf by 70% by 2040, thanks to its abundant renewable energy resources.

Other producing countries may face logistical barriers when converting assets, including significant distances from the mainland, a lack of power grid infrastructure and limited renewable power capacity.

The role of premium energy basins

‘Premium energy basins’ (PEB) – a term coined by Rystad Energy to describe oil and gas basins with ample hydrocarbon reserves and the potential to incorporate environmentally friendly practices – could play a major role in reducing upstream emissions, with the Middle East home to the top two PEBs. If PEB assets electrify and reduce emissions by 50%, a total of 5.5 gigatonnes of carbon dioxide (Gt of CO2) would be avoided by 2050. The 28 PEBs identified in the report offer estimated total emission savings of about 1.3 billion tonnes of CO2 between 2025 and 2030. The top 10 PEBs (by emissions savings) alone account for over 80% of these savings with the Middle Eastern Rub al Khali (370 million tonnes of carbon dioxide equivalent [CO2e]) and Central Arabian (251 million tonnes of CO2e) leading the rankings. Electrification in these predominantly onshore basins, if adopted more widely, would largely be driven by drawing power from a clean onshore grid.

Electrification requires careful planning, including the selection of optimal technologies, assessment of total costs and strategies to ensure a continuous energy supply, particularly in remote locations with limited grid access.

Economic and financial viability must also be prioritised. A proactive approach to electrification can enhance operational efficiency and open new revenue streams through the sale of excess renewable energy.

“As the world confronts the pressing issue of climate change, the oil and gas industry is under increasing pressure to minimise its carbon footprint and align its practices with global sustainability objectives. Where it’s possible and economically viable, electrification has great potential to lower the industry's emissions while maintaining production output,” said Palzor Shenga, vice president of upstream research with Rystad Energy.

Reducing flaring could also be an effective way of reducing upstream emissions for both electrified assets and assets with limited electrification potential, Rystad notes. Around 140bn cubic metres per annum of gas has been flared globally in the last 10 years, equivalent to around 290mn tonnes of CO2e emissions annually, mainly accounted for by major producers in North America, the Middle East and Africa.

Viking's Cut to Release Packer. (Image source: Viking Completion Technology).

Dubai-based Viking Completion Technology, a leading supplier of well completion equipment and services, has completed a gas storage project in Germany and sees promising opportunities in this growing new energy sector

Viking’s in-house engineering team designed a bespoke 13-3/8” x 9-5/8” (11.600” OD) API 11D1 V0-R Cut to Release Packer suitable for 0-100C temperature range, to address the challenge of the large bore and low-temperature requirements of underground gas storage applications. The specialised packer was then delivered and installed in Germany, the first time the UAE-based team has delivered equipment to Europe’s utilities and energy market.

Viking is looking to build on this success by focusing on gas storage by engaging and supporting new customers in non-traditional energy markets. The company sees potential for a variety of similar projects in Germany, as well as parallel projects across Europe, Oceania, and Asia, aligning with evolving industry trends following an increased demand for suitably validated completion equipment for gas storage applications.

Viking managing director Willie Morrison commented, "As more businesses across the globe focus on energy security and balancing energy demands that vary with environmental conditions, this landscape will continue to expand. Viking is ideally placed to provide the level of excellence and flexibility that these applications and customers require."

Technical Support manager Simon Leiper added, "These projects bring their own unique considerations and challenges. In the past, end users for gas storage applications may have opted for a two-trip completion, utilising a permanent packer and anchor latch, with no validation. Our solution of an API 11D1 V0-R validated Cut to Release packer significantly levels up the specifications and improves operational efficiency, by removing a run, while giving the flexibility to retrieve the completion later.”

CarbonEdge delivers real-time data on CO2 flows across CCUS infrastructure. (Image source: Adobe Stock)

Baker Hughes has launched CarbonEdge, powered by Cordant, an end-to-end, risk-based digital solution for CCUS operations that provides comprehensive support for regulatory reporting and operational risk management

With an intuitive, integrated dashboard, CarbonEdge delivers precise, real-time data and alerts on CO2 flows across CCUS infrastructure, from carbon capture and compression to pipeline transportation, as well as subsurface storage. Offering connectivity across the entire CCUS project lifecycle, it enables customers to identify and manage risk, improve decision-making, enhance operational efficiency, and simplify regulatory reporting.

The solution is integrated with Baker Hughes' subsurface and autonomous modelling solutions,  delivering storage site characterisation workflows and comprehensive monitoring and verification (MMV) frameworks.
Applicable to any CCUS infrastructure applied across multiple industries, CarbonEdge is expected to be fast to deploy and easy to scale, ensuring seamless connectivity, data synchronisation and interoperability across various components of the digital ecosystems of Baker Hughes and its customers.

Baker Hughes is working with Wabash Valley Resources (WVR), which produces low-carbon ammonia fertiliser, to further develop the CarbonEdge platform. As a launch customer for this platform, WVR will leverage CarbonEdge to measure monitor and verify the volumes of CO2 collected, transported and sequestered underground.

“CCUS technology solutions are essential for driving decarbonisation of the energy and industrial sectors on our path to solving for climate change,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “With the launch of CarbonEdge, we not only expand our portfolio of digital solutions to support new energies and empower our customers’ ability to mitigate risk while enhancing operational efficiency, but also take a bold step toward a future with more sustainable energy development. We look forward to working alongside Wabash Valley Resources to refine and evolve CarbonEdge, ensuring it continues to meet the dynamic needs of a rapidly changing industry.”

CarbonEdge is the first fully integrated digital offering within Baker Hughes' Climate Technology Solutions portfolio.

The agreement was witnessed by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council. (Image source: ADNOC)

ADNOC has signed an agreement to acquire a 35% equity stake in ExxonMobil's proposed low-carbon hydrogen and ammonia production facility in Baytown, Texas

The facility is expected to be the world’s largest of its kind upon startup, capable of producing up to one billion cubic feet (bcf) daily of low-carbon hydrogen and more than one million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated startup in 2029. The facility will help reduce greenhouse gas emissions across hard-to-abate sectors, including industry, energy and transportation, meet rising demand for lower-carbon fuels, and support both companies' net zero ambitions.

The facility will leverage advanced carbon capture and storage technologies to reduce emissions associated with hydrogen production. The project will also support US job creation and community development initiatives, bringing substantial economic benefits to Baytown, the Houston area and Texas.

Strategic investment

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, "This strategic investment is a significant step for ADNOC as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy. We look forward to partnering with ExxonMobil on this low carbon-intensity and technologically advanced project to meet rising demand and help decarbonise heavy-emitting sectors.”

Darren Woods, ExxonMobil Chairman and CEO, added, “This is a world-scale project in a new global energy value chain. Bringing on the right partners is key to accelerating market development, and we’re pleased to add ADNOC’s proven experience and global market insights to our Baytown facility.”