E&P Decarbonization: A New Imperative in Driving Toward Net Zero

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The world must limit global temperature increase to 1.5 C to avoid the worst effects of climate change, according to the International Energy Agency (IEA) and climate science, and to achieve this, it must reach net-zero emissions by 2050. Simultaneously, energy needs to sustain a forecasted 40% growth in the global economy over the next decade. With no realistic scenario for an immediate transition to nonhydrocarbon energy sources—and with oil and gas operations today representing almost 10% of all global greenhouse-gas (GHG) emissions—how can the oil and gas industry play its part in addressing climate change while meeting short- and long-term energy demand, sustainably?

As sustainability quickly becomes the industry’s key value driver, it needs to harness its history of innovation and collaboration to meet rising energy demand while balancing future concerns and impacts—environmentally and economically. This journey requires of key stakeholders an emissions reduction plan addressing near- and long-term decarbonization goals as society transitions toward a sustainable future.

Industry imperative enablers

Following years of detailed analysis, Schlumberger has developed a science-based decarbonization plan aligned to the U.N. Sustainable Development Goals (SDGs), leveraging short- and long-term opportunities, to achieve net-zero emissions by 2050. The plan addresses the company’s scopes 1, 2 and 3 sources, comprising reduced emissions in operations at its facilities and phase emissions of its products and services in customer operations and carbon-negative actions. A full scope 3 emissions accounting exercise helps the company understand at a granular level where it can influence decarbonization efforts from its upstream and downstream supply chain and operations.

To help its customers address sustainability across the E&P value chain, Schlumberger recently introduced its Transition Technologies* portfolio, offering solutions backed by science-based impact quantifications to help drive high performance, sustainably. Impact quantification is enabled by a broad ranging internally developed framework which incorporates existing protocols such as GHG Protocol and Oil and Gas Methane Partnership (OGMP) together with methodologies specific to its products and services. 

By combining this impact quantification with a value chain analysis and scope 3 emissions inventory, it’s possible to focus emissions reduction efforts within the E&P space. Some of the most compelling opportunities to decarbonize customer operations lie within production operations and methane emissions—of which the latter contributes over 50% of oil and gas related GHG emissions today. 

Digital, Collaboration and Quantification are King

The E&P industry has a long history of technical collaboration between operators and service companies to overcome challenges that previously seemed impossible. 

To maximize the effectiveness of industry decarbonization efforts, innovation, collaboration and digital enablers will be critical. Increasingly, digital technologies enable fast, scalable solutions and effective collaborative partnerships. Cloud- and edge-based solutions alike are now the norm within the oilfield where solutions like subsurface modeling software, integrated drilling and remote collaboration are now considered standard operating practice.

Technologies alone can have a strong impact, but to maximize decarbonization effectiveness, industry stakeholders will need to partner to address entire value chains and processes from an emissions sustainability perspective, in addition to traditional efforts that drive cost and efficiency. Digital solutions will drive collaboration and simplify complex workflows, maximizing sustainability efforts.

For example, technologies that reduce waste generated offshore during drilling operations consequently reduce emissions from both supply vessels transporting it onshore and the treatment process itself. However, what if the collaborative partnership started earlier, before the project began? Digital tools could model the end-to-end well construction process from an emissions perspective, and the optimal choice of well design and technology solutions could be combined to minimize impact. Actual emissions could be quantified and compared to the plan, driving future decarbonization decisions—just like the industry is doing now with other key operational metrics such as cost and efficiency.

Finally, it’s essential that E&P decarbonization is rooted in credibility and that sustainability impacts are consistently quantified using a scientific approach. Doing so will ensure transparency and substantiate the effectiveness of industry efforts. So far, the industry has adopted a base framework aligned to U.N. SDGs and must now adapt to science-based impact quantification. The next step is to work together to identify where the biggest near- and long-term impact reduction opportunities lie and quantify the impacts of technologies and solutions.

Schlumberger’s quantification framework for Transition Technologies aligns with this objective of impact quantification and links the U.N. SDGs most applicable to its technology solutions with specific, measurable attributes such as emissions, energy consumption, and/or waste reduction. 

Quantifying environmental impact of technologies

During the process of quantifying the impact of Transition Technologies, Schlumberger recognized key themes related to decarbonization opportunities across the value chain: 

• Full field development solutions;
• Addressing methane emissions;
• Minimizing well construction CO₂ footprint;
• Reducing or eliminating flaring; and
• Electrification of infrastructure.

Focusing on production operations, full field development solutions and electrification of infrastructure present opportunities to reduce emissions throughout the life of the asset. Addressing methane emissions offers compelling opportunity for near-term impacts on a potent greenhouse gas.

For example, full field development solutions include production systems that reduce energy consumption, such as subsea boosting and compression. This reduction in energy consumption can drive huge emissions reductions compared with traditional topside systems, potentially avoiding > 1M T CO₂e throughout the asset life. Technologies such as rapid multilateral systems maximize the use of existing facilities, and reduce emissions associated with manufacturing additional hardware and overall, well construction. In addition to maximizing impact of digital integration, electrification of infrastructure enables access to renewable power and further minimizes footprint and emissions during manufacturing, installation, operations, and maintenance. 

Methane is a potent GHG that has over 80 times the global warming potential over 20 years compared with CO₂. Using today’s satellite technology, methane is estimated to contribute 57% of all GHG emissions within oil and gas operations. 

Methane emissions are largely grouped into two categories. Vented methane is emitted by design. Fugitive methane is that which leaks, for instance, through a leaky valve. In addition to hardware solutions, such as low-emissions valves, the key to addressing fugitive methane and accurately quantifying volumes of vented methane is detecting the leaks and quantifying their size. Today, there are many exciting innovations in both methane detection capabilities and end-to-end emissions management solutions.

Whether related to full field development solutions, electrification or addressing methane, the maximum impact on emissions reduction will be achieved by addressing integrated work scopes with early stakeholder engagements and partnerships to develop unique technical solutions or combinations thereof.

Conclusion 

Reducing GHG emissions to net zero by 2050 is critical to avoid the worst effects of climate change. Today, there is no immediate option for a transition to low-carbon energy; therefore, decarbonization of our industry, just as it is with other industries, is critical in moving toward this goal. The oil and gas industry has a rich history of technical partnerships and innovation, and as we progress through the energy transition, these qualities will be the key to maximizing our impact toward the goal of decarbonization and net zero. Digital solutions will be fundamental in facilitating these partnerships and effectively scaling the industry’s efforts to maximize emissions reductions across a broad scope of operations and complex workflows. Finally, credibility is essential and is the foundation on which all these efforts need to be built. The industry must work together to consistently and openly quantify sustainability efforts, to ensure transparency, share learnings effectively and drive continuous decarbonization across the entire value chain.

Simon Edmundson serves as low-carbon technology marketing manager at Schlumberger.