Upstream electrification can cut oil and gas production emissions by more than 80%, report says

(Reuters) - Oil and gas production facilities could reduce associated emissions by more than 80% by switching to electricity generated from renewables or natural gas designated for burning, a report from research firm Rystad Energy said on Thursday.

The report said oil-producing rigs and other assets in the Norwegian Continental Shelf emit 86% less carbon dioxide per barrel of oil equivalent after fully electrifying.

Though other producing countries may face logistical hurdles, even partial electrification will significantly cut emissions, analysts said.

WHY IT'S IMPORTANT

Scientists estimate that the world needs to cut greenhouse gas emissions by around 43% by 2030 from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 Fahrenheit) above pre-industrial levels.

About 140 billion cubic meters per annum of gas has been flared, a process where excess gas is burned off, globally in the last 10 years, equaling about 290 million tonnes of CO2 emissions annually.

CONTEXT

Oil companies around the world opted to burn off the most natural gas in five years in 2023, according to a World Bank report.

Top oil and gas companies are aiming to cut their emissions at a rapid pace to reach their goals of achieving net zero by 2050 in terms of greenhouse gas discharge.

NUMBERS

If the production assets at top oil and gas-producing regions of the world cut their emissions by 50%, the CO2 reduction would equate to about 0.025 degrees Celsius of global warming avoided by 2050, according to the report.



KEY QUOTE

"Where it's possible and economically viable, electrification has great potential to lower the industry's emissions while maintaining production output," says Palzor Shenga, vice president of upstream research with Rystad.

Source: Investing.com