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As the world accelerates its path to achieving net-zero goals, it\u2019s becoming clearer than ever that the oil and gas industry will have a critical role to play. Amid this realization, there is also growing optimism that the oil and gas industry is well on its way to developing the technologies and capabilities needed to realize a low-carbon future, according to a panel discussion at the 2022 Offshore Technology Conference (OTC). The session examined the different pathways for companies in the traditional oil and gas space to restructure their businesses so they can better align with the energy transition.
\u201cWe\u2019ve never seen such a strong, growing commitment from the oil and gas industry to decarbonize operations. It\u2019s just not well known enough out in the world,\u201d said Amy Chronis, Vice Chairman, US Oil, Gas and Chemicals Lead at Deloitte, at the 3 May OTC session. \u201cWe think this commitment\u2019s only going to get stronger due to the improving financial health of the industry and the growing commercialization of green technologies. There\u2019s a lot going on.\u201d
Nabors, for example, is taking a three-step approach to decarbonization, said Guillermo Sierra, VP Strategic Initiatives \u2013 Energy Transition. One step deploying technologies to lower emissions of operations, like various energy storage systems and engine management software. The next step is to identify opportunities to apply these solutions beyond drilling to the broader upstream segment and potentially other industries. And finally, Mr Sierra said, Nabors is making investments in adjacent low-carbon segments or technologies. Nabors has invested in four geothermal companies over the past year.
Through its ventures group, the company seeks to create \u201cecosystems\u201d of complementary clean-energy technologies that can either be used on Nabors\u2019 own operations or that can benefit from the company\u2019s competencies, Mr Sierra said.
\u201cAs we think about how to create engine efficiencies, as you think about how to hybridize assets, how to be able to manage energy across an asset base, spending time on energy storage solutions is of paramount importance to us,\u201d he commented. \u201cWe can be a customer, we can be a pilot test, we can be something to these guys on the energy storage side for example. Ultimately, the goal is to figure out a way to use who we are today, use our skills, use our engineering capabilities, use our global scale to make investments.\u201d
Schlumberger has been working on optimizing power usage on rigs through its Intelligent Power Management solution, which consists of an automated software program and a battery energy storage system. The software has an adaptive stop\/start feature based on rig engine load \u2013 when the power demand is low, it diverts excess energy to the battery system, optimizing fuel consumption and reducing emissions.
Paul Sims, VP of Marketing as Schlumberger, said the company is currently working on expanding the system\u2019s capabilities by incorporating alternative fuels, namely hydrogen. The ultimate goal is to replace the diesel generator sets entirely with hydrogen fuel cells, he said, creating a zero-emission drilling solution. However, he acknowledged the challenges in making this a reality.
\u201cWe need either a hydrogen supply or the ability to generate power through electrolysis or through steam generation on site. In certain parts of the country, that\u2019s becoming a reality, particularly on the West Coast. There\u2019s already enough hydrogen in the US to power 16,000 drilling rigs, far more than the fleet that\u2019s active, and this will only increase,\u201d Mr Sims said.
Mr Sierra questioned the viability of pure hydrogen-fueled rigs in the foreseeable future, but he said it could \u201cpotentially be used to enhance engine performance when combined with diesel.\u201d He also said it would be important to develop low-carbon solutions that do not place additional strain on the environment. While battery energy storage systems provide a short-term solution for reducing emissions, to develop those systems at scale could require large volumes of lithium to be mined. That could introduce further complications, as lithium mining is a source of pollution.
\u201cAs we think about energy storage and batteries, we\u2019ve got to be conscious about what we\u2019re doing and what need we\u2019re trying to solve,\u201d he said. \u201cIt\u2019s very hard to replace lithium when it comes to a lot of the electronics we use, but on the industrial scale, we\u2019re trying to think outside of the box and look at other things that we could be using to store energy that don\u2019t necessarily require going down the mining path and creating all of these other problems for ourselves and humanity.\u201d
The panelists also discussed how the energy transition will affect workforce development in the near future. Ms Chronis said that building sufficient labor with the skills needed to develop low-carbon solutions will be critical for the oil and gas industry. This means the industry will need to attract new talent from non-traditional backgrounds, such as mathematicians, statisticians, design engineers and environmental advisors. Because these skills are also in high demand by other industries, oil and gas companies will need to better market themselves as offering viable long-term career options.
\u201cThe oil and gas industry offers a lot more than just working on a rig,\u201d she said. \u201cWe need a lot more skills to enable decarbonization and digitalization across the value chain\u2026 but it\u2019s not just in energy where those skills are needed. They\u2019re needed across sectors, so it really comes back to our need to do a much better job of telling the story that this industry can power the future.\u201d
The energy transition is going to play a critical role in recruiting moving forward. Mr Sims said companies that engage in renewables will be better positioned to illustrate their long-term viability to potential recruits.
\u201cI think that some of the new employment possibilities are different,\u201d he said. \u201cWe have a lot more partnerships with academia, other industry partners and governments. People can see that they can have a rich career working in a lot of different sectors within the same company, and that\u2019s quite unique as we go into a new energy space.\u201d<\/p>\n\n\n\n
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As the world accelerates its path to achieving net-zero goals, it\u2019s becoming clearer than ever that the oil and gas industry will have a critical role to play. Amid this realization, there is also growing optimism that the oil and gas industry is well on its way to developing the technologies and capabilities needed to …<\/p>\n