scholarly journals Carbon intensity of oil and gas production

2021 ◽  
Author(s):  
Omran Al-Kuwari ◽  
Dan Welsby ◽  
Baltazar Solano Rodriguez ◽  
Steve Pye ◽  
Paul Ekins
Keyword(s):  
Climate Policy ◽  
Internal Combustion Engines ◽  
Oil And Gas ◽  
Gas Production ◽  
Carbon Intensity ◽  
Oil Companies ◽  
Climate Targets ◽  
Future Production ◽  
The Impact ◽  
Oil And Gas Sector

Abstract This report focuses on reviewing the types of carbon intensity metrics, and the use of such metrics across the oil and gas sector, to monitor progress towards transitioning away from fossil fuel production. Producers are under pressure to respond to challenging conditions resulting from increasing climate policy, tightening markets and a move away by investors. A number of commentators are suggesting that production may have peaked, given these emerging trends, and the ongoing Covid-19 pandemic.From a combination of review and modelling, this report provides some key insights on carbon intensity metrics and the impact of different carbon intensities on future production, which are pertinent to the future strategies of the oil and gas sector -·Narrow-scoped metrics that only include upstream emissions are insufficient for producers reporting on progress towards climate goals. The carbon intensity of the final product also needs to be considered, given that it is increasingly subject to increased demand-side policy e.g. in relation to carbon pricing, bans on the sale of internal combustion engines (ICEs) etc.·Given that climate targets are expressed in absolute terms, the relative measure of progress provided by carbon intensity metrics is insufficient to guide progress towards net-zero emissions. As shown by the modelling, there is a significant decline in the levels of production permitted under climate targets by 2050. ·Given the need for diversification, metrics that account for scope 3 emissions will be important, to help monitor the transformation away from oil and gas. As discussed in this report, a number of IOCs appear to be making small steps in this direction, although their key business focus very much remains on oil & gas. As the IEA (2020a) has reported, less than 1% of capital expenditure is being spent outside of core business areas.·However, cleaner operations are also important. Therefore, scope 1&2 metrics are still useful for minimising upstream emissions. The modelling highlights the impact for example of high carbon intensity gas resources (due to methane emissions) on their production levels. Unconventional resources, which tend to require more energy input per unit of extraction, and are more costly, appear unlikely to be exploited in our Paris-aligned case.·Any assertion that higher carbon intensity production upstream can be offset by lower emissions downstream (e.g. via higher vehicle efficiency standards) is not supported by the modelling. This is particularly the case where these oil products are exported abroad to regions with low efficiency forms of transportation/limited environmental regulation.·National oil companies (NOCs) have more potential to achieve emission reduction from operational emissions, although the incentives to do so might be lower (with far less scrutiny and reporting). Diversification is also likely to be more of a challenge for NOCs, due to the reliance of public budgets on revenues gained. However, a number of high-producing countries are vigorously exploring diversification strategies. Such strategies could include massively increasing support for renewable industries, and focusing on areas such as hydrogen production and CCS applications.·For the large NOC producers, with the lowest-cost conventional reserves, it is likely that they may be able to continue producing for the longest time, as climate policy stringency increases. However, given that NOCs hold the largest reserves, risks of stranding will be greater in absolute terms.

Who Is Winning in Energy Transition?

2021 ◽  
Vol 73 (06) ◽  
pp. 34-37
Author(s):  
Judy Feder
Keyword(s):  
Alternative Energy ◽  
Oil And Gas ◽  
Peer Group ◽  
Energy Transition ◽  
Oil And Gas Industry ◽  
Gas Production ◽  
Business Strategies ◽  
Field Energy ◽  
Carbon Intensity ◽  
Oil Companies

We talk about “the energy transition” as if it were some type of unified, global event. Instead, numerous approaches to energy transitions are taking place in parallel, with all of the “players” moving at different paces, in different directions, and with different guiding philosophies. Which companies are best positioned to survive and thrive, and why? This article takes a look at what several top energy research and business intelligence firms are saying. What a Difference a Year Makes Prior to 2020—in fact, as recently as the 2014 bust that followed the shale boom—the oil and gas industry weathered downturns by “tightening their belts” and “doing more with less” in the form of cutting capital expenditures and costs, tapping credit lines, and improving operational efficiency. Adopting advanced digitalization and cognitive technologies as integral parts of the supply chain from 2015 to 2019 led to significant performance improvements as companies dealt with “shale shock.” Then, in 2020, a strange thing happened. Just as disruptive technologies like electric vehicles and solar photovoltaic and new batteries were gaining traction and decarbonization and environmental, social, and governance (ESG) issues were rising to the top of global social and policy agendas, COVID-19 left companies with almost nothing to squeeze from their supply chains, and budget cuts had a direct impact on operational performance and short-term operational plans. To stabilize their returns, many oil and gas companies revised and reshaped their portfolios and business strategies around decarbonization and alternative energy sources. The result: The investment in efforts toward effecting energy transition surpassed $500 billion for the first time in early 2021 ($501.3 billion, a 9% increase over 2019, according to BloombergNEF) despite the economic disruption caused by COVID-19. According to Wood Mackenzie, carbon emissions and carbon intensity are now key metrics in any project’s final investment decision. And, Rystad Energy said that greenhouse-gas emissions are declining faster than what is outlined in many conventional models regarded as aggressive scenarios. In Rystad’s model, electrification levels will reach 80% by 2050. A Look at the Playing Field: Energy Transition Pillars In a February 2021 webinar, Rystad discussed what leading exploration and production (E&P) companies are doing to keep up with the energy transition and stay investable in the rapidly changing market environment. The consulting firm researched the top 25 E&P companies based on their oil and gas production in 2020 and analyzed how they approach various market criteria in “three pillars of energy transition in the E&P sector” that the firm regards as key distinguishers and important indicators of potential success (Fig. 1). The research excludes national oil companies (NOCs) except for those with international activity (INOCs). Rystad says these 25 companies are responsible for almost 40% of global hydrocarbon production and the same share of global E&P investments and believes the trends within this peer group are representative on a global scale.

scholarly journals The Concept of Sustainable Development of the Oil and Gas Sector as One of the Subsystems of Noonomics

2020 ◽  
Vol 6 (4) ◽  
pp. 278-286
Author(s):  
A. S. Fomenko
Keyword(s):  
Sustainable Development ◽  
Oil And Gas ◽  
Time Factors ◽  
Oil And Gas Industry ◽  
Gas Production ◽  
Oil Refining ◽  
Gas Industry ◽  
Oil And Gas Production ◽  
Oil Companies ◽  
Oil And Gas Sector

This work is devoted to the study of a new way of development of the oil and gas industry, which is due to the influence of many factors of our time. Factors such as limited resources, an increase in the anthropogenic and technological load on the environment, and the risks associated with the complexity of the oil refining process itself, require a fundamentally different solution, which is fully provided by noonomics. It is shown that sustainable development based on the principles of noonomics reduces the role and significance of material factors in the production process of vertically integrated oil companies and the oil and gas industry as a whole, highlighting scientificand technological progress in oil and gas production and their processing.

scholarly journals Russian NFG, TNC and SOC of the oil and gas complex on the regional and world markets

2020 ◽  
Vol 186 (11-12) ◽  
pp. 21-27
Author(s):  
Violetta Kuzmina ◽  
◽  
Marina Parhomchuk ◽  
Irina Minakova ◽  
◽  
...  
Keyword(s):  
Russian Federation ◽  
Oil And Gas ◽  
Gas Production ◽  
The European Union ◽  
Oil And Gas Production ◽  
Oil Companies ◽  
Macroeconomic Analysis ◽  
The Russian Federation ◽  
The Government ◽  
Oil And Gas Sector

The most powerful Russian NFG (national financial group) (Lukoil, Tatneft, Sibur Holding), transnational companies (TNCs) (Gazprom, Rosneft) and small oil companies (SOCs) (Sibir Energy PLC, West Siberian Resources) operate in the oil and gas complex. The oil and gas complex traditionally acts as a guarantor of the country’s energy security. The new economic conditions in 2021 are associated with a decrease in demand for oil and products from it, high dependence on imports, and the suspension of wells to complete a deal under OPEC ++, which will lead to a market drop by 3-10%. The purpose of the paper is to conduct a comparative analysis of Russian NFG, TNCs and SOCs in the regional and global oil and gas markets. The initial materials used to conduct the research were statistical data from the Center for Macroeconomic Analysis and Short-Term Forecasting, the Ministry of Economic Development of the Russian Federation, the Analytical Center under the Government of the Russian Federation and world rating reports. The pandemic and self-isolation of 2020 have led to a decrease in the intensity of global supply chains, affecting Russian NFGs, TNCs and SOCs in the oil and gas sector. The Russian oil and gas sector has lost 50-60% of its proceeds from the export of hydrocarbons, which is more than 50% of its capitalization. To support the industry, the Ministry of Industry and Trade of the Russian Federation will have allocated RUB 35 billion by 2024. Today, Russian NFGs, TNCs and SOCs operate in conditions of a negative damper, contraction of the domestic market, reduction of crack spreads and restrictions on production growth. Therefore, the following is relevant for them: for NFGs - search for new sales markets (for example, Asia), for TNCs - the use of innovative technologies to maintain the profitability of oil and gas production, for SOCs - development of small deposits and deposits with hard-to-recover reserves. For TNC net importers of oil from the European Union, Japan, and Korea, the electromobilization process is a potential source of economic growth. European majors, such as BP, Equinor, Shell and Total, have set decarbonization goals, transforming from oil and gas to diversified energy companies.

scholarly journals How Oil Contracts Affect Human Rights

2018 ◽  
Vol 3 (4) ◽  
pp. 30
Author(s):  
Maria João Mimoso ◽  
Clara da Conceição de Sousa Alves ◽  
Diogo Filipe Dias Gonçalves
Keyword(s):  
Human Rights ◽  
Oil And Gas ◽  
Social Issues ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
The Social ◽  
Oil Contracts ◽  
The 19Th Century ◽  
The Impact

Since the beginning of the 19th century, we have assisted major proliferation of the oil and gas industry. This phenomenon of exponential growth is due to the fact that oil companies hold the world’s oil monopoly on the extraction, processing and commercialization. Therefore, as being one of the most influential sectors in the world, is crucial to strictly regulate how oil and gas contracts concerns the potential environmental and social impacts arising from the conduct of petroleum operations and how such behavior affects the human rights. As a matter of fact, the social issues field is an emerging area, and despite such importance, oil contracts do not often deal with them in great detail, corresponding to an actual emptiness of the human rights provisions. In terms of responsibly, oil companies, have an inalienable obligation to ensure that their actions do not violate human rights or contribute for their violation. This study aims to trace a detailed analysis of the impact of the oil and gas agreements in human rights. In order to fully comprehend the deep effects of this industry, we will examine, in detail, numerous of published oil and gas agreements, as well as, decode which are the real standards and practices accepted by this industry. We will use a deductive and speculative reasoning. We will try to demonstrate how incipient and short protection is given to human rights and what responsible conducts must urgently be developed.

scholarly journals Effectiveness of Tax Incentives of Hard-To-Recover Oil Reserve Development

2019 ◽  
Vol 8 (10S) ◽  
pp. 399-403
Keyword(s):  
Oil And Gas ◽  
Tax Incentives ◽  
Gas Production ◽  
Market Development ◽  
Oil And Gas Production ◽  
Technological Breakthrough ◽  
Tax Incentive ◽  
The Usa ◽  
Geological Formations ◽  
Oil And Gas Sector

The present-day stage of the world hydrocarbon market development is characterized by the growing share of oil and gas production from the fields related to hard-to-recover reserves in terms of different criteria, which is a consequence of technological breakthrough in the USA. The strategic task of Russian oil and gas sector is to intensify the development of such fields with governmental support in the form of tax incentives. The goal of this research is to consider dynamics of oil production from the fields related to Bazhenov, Abalak, Domanic, and Khadumsk geological formations with enormous hydrocarbon potential thanks to tax incentives. The research method used is statistical analysis. The research results have shown the effectiveness of tax incentives, but due to absence of native development technologies, the effectiveness of incentives is evened, which requires different approaches to the tax incentive system.

scholarly journals Impact of changes in economic pressures on the activities of foreign oil and gas companies in Venezuela

2021 ◽  
Vol 29 (2) ◽  
pp. 312-323
Author(s):  
Elmira A. Chadaeva ◽  
Elvis Ojeda Kalluni
Keyword(s):  
Oil And Gas ◽  
State Regulation ◽  
Strategic Partnerships ◽  
Oil Companies ◽  
Foreign Companies ◽  
Slowing Down ◽  
Tax Legislation ◽  
Tax Regimes ◽  
Exxon Mobil ◽  
Oil And Gas Sector

The article discusses several new laws in the oil and gas sector of Venezuela, which appeared at the beginning of the 21st century. It also presents the tax regimes in this area of the country and the types of tax and economic burdens that apply to these regimes; highlights the main problematic aspects of changes in tax legislation and the consequences on the activities of foreign companies and the development of the oil and gas sector of the country as a result of such changes. It is concluded that the increase in state revenues not solve the problem of attracting investments in the oil and gas sector of the country, and only scare off a large company in the future (Exxon Mobil and ConocoPhillips have left the Venezuelan market), resulting in a fall in production at the country, its government revenues, and then slowing down economic growth in the country. As an alternative approach to improving state regulation and the conduct of the oil business in the country, the options for improving this situation are presented: to increase the share of foreign companies in strategic partnerships; review the tax system for oil companies; allow some programs to be implemented directly by foreign companies; and propose new distribution and profitability schemes that will adapt to the current international hydrocarbon market.

scholarly journals Analisis Curse Theory pada Sumber Daya Alam Migas Bagi Warga Madura

2018 ◽  
Vol 14 (1) ◽  
pp. 12
Author(s):  
Mohammad Hidayaturrahman
Keyword(s):  
Oil And Gas ◽  
Gas Production ◽  
Community Empowerment ◽  
Government Programs ◽  
Oil And Gas Production ◽  
Oil And Gas Exploration ◽  
Exploration And Production ◽  
State Income ◽  
The Government ◽  
Oil And Gas Sector

Government policies in natural resource management, especially in the oil and gas sector face a lot of problems. However, the government also has a responsibility to improve the life of people affected from oil and gas exploration and production activities. This research was aimed at investigating how the implementation of policies run by the central and local government toward the oil and gas management and community empowerment, especially the community located closely  to oil and gas exploration and production activity in Madura, East Java. This research method is phenomenological research using descriptive qualitative approach. Therefore, this study is conducted through direct observation on the object during the research time. The data collection is done through observation and interview. The results of this study revealed that it is needed an integrated step done by the government, vertically, whether central, provincial, district, and village to synchronize oil and gas management and community empowerment programs. By doing so, the ideas and desires to improve the welfare and increase the state income will be realized, especially in focusing corporate and government programs improving citizen’ economic and education, whose area becomes the location of oil and gas production.

Environmental liability and asset retirement obligations

2011 ◽  
Vol 51 (2) ◽  
pp. 697
Author(s):  
Michael Clark ◽  
John Claypool
Keyword(s):  
Oil And Gas ◽  
Operating Conditions ◽  
Federal State ◽  
Operating Life ◽  
Oil Companies ◽  
Oil And Gas Producers ◽  
State And Local ◽  
Well Abandonment ◽  
The Cost ◽  
The Impact

Oil companies, partnerships and entities developed for the exploration and/or production of hydrocarbons typically invest for a reasonably certain period of time, with the assets projected to have little or no value at the end of their life cycle. Historically, production facilities were decommissioned as cost effectively as possible, with limited consideration of the cost of this practice being factored into the initial costs or operating budgets, and the salvage value of the scrap metal was applied to cover the cost of the demolition. Today, most oil and gas producers are required to account for the estimated future cost of dismantling and removing facilities and equipment, as well as restoring land to its previous condition. The estimated costs for future dismantling, removal, and restoration are different to other costs associated with the acquisition and use of productive assets. The impact of potential environmental expenses associated with these practices typically occurs after an asset has ceased production. Planning for environmental costs for asset retirement obligations (AROs) is ideally conducted during the asset's operating life. This is so that compliance costs and other operating expenses are recorded consistently in conformance with accounting policies and regulations. Tentatively identified AROs include: asbestos, batteries, PCB transformers, underground or above ground storage tanks, well abandonment, waste impoundments, mercury, and other components of an active producing facility. Operators need to identify specific performance requirements that may impose obligations on their organisation. Federal, state and local requirements need be considered, as they apply to specific operating conditions.

Wet Gas Impeller Test Facility

2010 ◽  
Author(s):  
Trond G. Gru¨ner ◽  
Lars E. Bakken
Keyword(s):  
Oil And Gas ◽  
Fluid Dynamic ◽  
Open Loop ◽  
Gas Production ◽  
Test Facility ◽  
Atmospheric Conditions ◽  
Oil And Gas Production ◽  
Wet Gas ◽  
Inlet Conditions ◽  
The Impact

The development of wet gas compressors will enable increased oil and gas production rates and enhanced profitable operation by subsea well-stream boosting. A more fundamental knowledge of the impact of liquid is essential with regard to the understanding of thermodynamic and fluid dynamic compressor behavior. An open-loop impeller test facility was designed to investigate the wet gas performance, aerodynamic stability, and operation range. The facility was made adaptable for different impeller and diffuser geometries. In this paper, the wet gas test facility and experimental work concerning the impact of wet gas on a representative full-scale industrial impeller are presented. The centrifugal compressor performance was examined at high gas volume fractions and atmospheric inlet conditions. Air and water were used as experimental fluids. Dry and wet gas performance was experimentally verified and analyzed. The results were in accordance with previous test data and indicated a stringent influence of the liquid phase. Air/water tests at atmospheric conditions were capable of reproducing the general performance trend of hydrocarbon wet gas compressor tests at high pressure.

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