Decarbonization and Net Zero Goals will Stimulate Renewable Energy Investment and Process Electrification
Alongside major trends such as carbon capture, hydrogen production and usage, and energy efficiency, the electrification of oil and gas (O&G) operations using renewable energy sources will be a major area of opportunity for decades to come.
Globally, governments are looking for solutions across sectors to mitigate climate change and support decarbonization, and the O&G industry holds the biggest opportunities. The route to decarbonization requires supportive regulatory frameworks that mandate energy efficiency and emission reduction measures across all sectors. To achieve a low-carbon future, significant economic investment in renewables; hydrogen; bioenergy; carbon capture, storage, and utilization (CCUS); and electrification are required.
Despite the significant potential to reduce carbon emissions, the electrification of O&G operations remains nascent. However, innovation among suppliers and supporting policies and regulatory frameworks from governments will boost adoption.
Most electrification technologies are commercially available, yet the high capital costs associated with replacing existing fossil fuel-based infrastructure, high electricity prices, lack of government incentives, and poor awareness are significant barriers to O&G electrification. But these restraints are changing as decarbonization goals become more urgent and a period of growth for electrification looms.
This study explores electrification in the transition to decarbonization of upstream O&G operations. It examines the key enablers of electrification and opportunities segmented by renewable energy (wind and solar) technology and platform (onshore and offshore) type. A comprehensive analysis of existing electrification technologies across these sectors is included.
KEY ISSUES ADDRESSED
- What role will electrification play in the energy transition and decarbonization of O&G operations?
- What needs to happen in the O&G industry to enable large-scale electrification?
- What can O&G companies do to reduce their scope 2 emissions?
- What technological developments are needed to achieve this electric transition?
- What will be the most attractive growth opportunities?
