With many countries and states setting ambitious targets for net-zero emissions within the next few decades, the need for carbon reduction has never been greater. Combined with the significant opportunities that exist for oil & gas companies to generate additional revenue in clean energy markets, many organizations are exploring how to reduce their emissions.
However, reducing carbon emissions isn’t as simple as flipping a switch. I recently sat down with several industry colleagues – Rob Minson, Managing Director at CarbonTP; Matthias Hartung, Executive Data and Digital Consultant, former VP of Technical Data for Shell; Josh Etkind, Upstream Deepwater Digital Transformation Manager at Shell and Torgeir Stordal, Director of Technology, Analysis and Coexistence for the Norwegian Petroleum Directorate – for a webinar with Oil & Gas Journal to discuss best practices oil & gas companies can follow to effectively reduce emissions and begin their net-zero journey.
We looked at the benefits of reducing emissions from multiple perspectives. In addition to the significant environmental benefits, there are opportunities to generate revenue, reduce the bottom line and drive organizational change through clean energy technologies. Below are a few key takeaways from our discussion:
- All stakeholders in an organization need to be open and transparent about what they want to achieve. Investors may be primarily interested in profit, but the community at large is concerned with energy security, while other stakeholders are focused on the environment first and foremost. All parties need to disclose the facts, interests and data up-front, which will help to create trust and transparency, and allow for an open discussion on the benefits and drawbacks of each individual project.
- There are several factors at play when evaluating data to determine the value and cost benefits of clean energy options. While clean energy options like solar and wind power have sufficient data and engineering capabilities, it’s much more difficult to understand how to de-carbonize existing operations. Technology must be integrated into existing assets, which requires understanding of the operational, safety and change management aspects to understand the economic benefits and costs. Also, renewable costs are hyper-localized, so companies must have a comprehensive understanding of their local requirements.
- Understand your own portfolio and which capabilities exist. Many oil & gas companies are seeking to diversify their offerings, including renewables and clean fuels. Which of your asset classes mesh with your desired outcomes? What capabilities do you need to acquire? This is crucial to understand.
- Identify transferrable skills within your organization. For example, oil & gas organizations have a long history of raw material extraction and energy storage of CO2, both of which are necessary for renewable development. Companies should explore these options and look for additional opportunities to transfer existing capabilities. Additionally, don’t underestimate the capability of your employees to learn new skills, even in entirely new technical arenas. With the emergence of advanced analytic capabilities such as AI and machine learning, lean into your digital savvy workforce to bridge these skill gaps and automate redundant processes and field tasks. Be confident that you have the skills needed to position you for an exciting clean energy future.
Ready to kickstart your carbon reduction journey? The full webinar is now available on demand to help your business navigate the challenge of reducing emissions. If interested in learning more about how Quorum Software’s solutions can aid in the process, contact us to get started.