7 Ways the Oil and Gas Industry is Making Better Use of Sustainable Technologies
We see increasing evidence that oil and gas companies are strengthening their commitment to sustainability as they adapt to the shifting realities of the global energy landscape. With governments—from the Middle East to the rest of the world—setting targets to reduce carbon emissions and increase the presence of renewables in their national energy mix, the industry is actively seeking innovations in clean technologies to successfully navigate this future energy vision.
It is becoming common practice for oil and gas firms to test and find success with a growing array of technologies and solutions that help them become more sustainable, minimize costs, and ultimately reduce their carbon footprint. As many OPEC nations accelerate their economic diversification strategies, this is driving even greater and faster adoption of sustainability measures across the sector. Therefore, we can expect many more companies to explore the following eight areas:
1. Harnessing Data More Effectively
Late last year, McKinsey estimated a performance gap in the oil and gas industry of $200 billion. Their research indicates that, on average, offshore platforms only operate at 77% of their maximum production potential. Data analytics systems and tools, when implemented correctly, can cut through the operational complexity of oil and gas activities. They are capable of quickly generating returns of up to 30 to 50 times the initial investment while reducing environmental impact by minimizing waste, accidents, and operational bottlenecks.
2. Decreasing Fresh Water Consumption
Water is essential across various oil production processes, from hydraulic fracturing to separating oil from other components found in oil sands. Hundreds of millions of barrels of water are used daily. While the global oil and gas industry currently recycles the vast majority of this water (between 80% and 95%), companies are rethinking the extraction process to reduce fresh water consumption right from the start.
3. Improving Water Recycling Efforts
To cut down on fresh water usage, oil and gas companies are exploring more effective methods for recycling and reusing water in their operations. They are increasingly seeking to use 100% non-potable water by enhancing filtration and oxidation methods, as well as utilizing advanced chemical-free water treatment solutions to neutralize bacterial contaminants like sulfate-reducing bacteria and iron-oxidizing bacteria.
4. Reducing Methane Leaks
Finding ways to mitigate methane leaks represents a profitable opportunity for the industry. Recent data from the International Energy Agency suggests that it is financially viable to reduce methane emissions from the oil and gas industry using both current and emerging technologies.
5. Recycling Used Oil
A growing number of companies are utilizing small-scale used oil micro-refineries that transform used oil into diesel. This method not only provides fuel for ongoing operations but is also a relatively inexpensive alternative to traditional oil disposal methods.
6. Process Optimization and Improvement
Even innovations that do not specifically make oil and gas processing cleaner can still contribute to the sector’s overall sustainability by enabling more cost-effective processes. For example, new ultrasound technology allows companies to create 3D images of the inside of oil wells, enabling them to make more informed and profitable production decisions. Similarly, the Industrial Internet of Things (IIoT), data analytics, automation, reserve replacement/enhancement capabilities, and emerging artificial intelligence programs can help detect and eliminate operational inefficiencies.
By improving the efficiency of ongoing operational processes, even by a small fraction, oil and gas companies can achieve the same output with reduced costs and energy expenditure, leading to an overall smaller carbon footprint.
7. Creating Digital Oilfields
Beyond incremental operational improvements, the accelerated pace of digitalization in the oil and gas industry has enabled the creation of the "digital oilfield," a process that is gaining increasing importance. By using cloud and big data technologies, the digital oilfield allows for the monitoring, analysis, and utilization of all operational data in real-time, leading to safer and more sustainable decision-making.