Reading sample

 

 

 

 

CLIMATE STRATEGIES FOR THE UPSTREAM OIL AND GAS SECTOR

 

 

 

 

 

TABLE OF CONTENT:

❖Chapter 1: Understanding the Climate Challenge

❖Chapter 2: The Role of Upstream Oil & Gas

❖Chapter 3: The Regulatory Landscape

❖Chapter 4: Emission Reduction Pathways

❖Chapter 5: Industry Case Studies and Best Practices

❖Chapter 6: Digitalization and Decarbonization Synergies

❖Chapter 7: Economic and Financial Implications of Climate Action

❖Chapter 8: Policy Engagement and Stakeholder Relations

❖Chapter 9: Innovation, R&D, and the Future of Low-Carbon Upstream Technologies

❖Chapter 10: Case Studies in Climate Leadership from the Upstream Sector

❖Chapter 11: Financing the Upstream Climate Transition

❖Chapter 12: Climate Scenario Planning and Resilience in the Upstream Sector

❖Chapter 13: Regulatory and Policy Trends Impacting Upstream Decarbonization

❖Chapter 14: Integrating Digital Technologies in Upstream Climate Strategy

❖Chapter 15: Collaborative Pathways — Partnerships, Alliances, and Industry-Led Initiatives

❖Chapter 16: Talent, Culture, and Organizational Change for Climate Readiness

❖Chapter 17: Metrics, KPIs, and Climate Performance Tracking in Upstream Operations

❖Chapter 18: Scenario Planning and Strategic Foresight for Climate Resilience

❖Chapter 19: Supply Chain Decarbonization and Climate-Aligned Procurement

❖Chapter 20: Nature-Based Solutions and Biodiversity in Upstream Climate Strategies

❖Chapter 21: Financing the Upstream Transition – Green Bonds, Carbon Markets, and Investment Models

❖Chapter 22: Workforce Transition and Climate-Aligned Talent Strategy in Upstream Oil & Gas

❖Chapter 23: Digital Transformation as a Catalyst for Upstream Decarbonization

❖Chapter 24: Regional Pathways – Decarbonizing Upstream in the Middle East, North America, Africa, and Beyond

❖Chapter 25: Scenario Planning and Risk Modelling for a Net-Zero Future

❖Chapter 26: Redefining Capital Allocation for Low-Carbon Upstream Growth

❖Chapter 27: Talent, Culture, and Organizational Transformation in the Low-Carbon Upstream

❖Chapter 28: Engaging Communities and Stakeholders in a Just Energy Transition

❖Chapter 29: Climate Litigation and Regulatory Risk in the Upstream Sector

❖Chapter 30: The Future of Carbon Markets and Upstream Participation

❖Chapter 31: Scenario Planning and Long-Term Climate Resilience for Upstream

❖Chapter 32: Metrics, KPIs, and Climate Performance Management in Upstream

❖Chapter 33: Organizational Change and Workforce Transformation for the Low-Carbon Era

❖Chapter 34: Innovation Ecosystems and Technology Partnerships for Decarbonization

❖Chapter 35: Leveraging Carbon Markets and Offsets in Upstream Climate Strategy

❖Chapter 36: Nature-Based Solutions and Blue Carbon Opportunities in Offshore and Coastal Upstream Assets

❖Chapter 37: Climate-Resilient Infrastructure and Adaptation Planning in Upstream Assets

❖Chapter 38: Circular Economy and Materials Efficiency in Upstream Supply Chains

❖Chapter 39: Climate-Conscious Innovation and R&D in Upstream Operations

❖Chapter 40: Building a Climate-Aligned Workforce and Culture in Upstream Organizations

❖Chapter 41: Integrating ESG and Climate Reporting for Upstream Operations

❖Chapter 42: Financing Low-Carbon Projects in the Upstream Sector

❖Chapter 43: Climate Policy Engagement and Advocacy by Upstream Companies

❖Chapter 44: Scenario Planning and Future-proofing in a Decarbonizing World

❖Chapter 45: Strategic Talent Development for a Low-Carbon Upstream Workforce

❖Chapter 46: Leveraging Artificial Intelligence for Emissions Optimization

❖Chapter 47: Financial Innovation and Climate-Aligned Investment in Upstream Oil and Gas

❖Chapter 48: Policy Advocacy and the Role of Oil and Gas in Climate Diplomacy

❖Chapter 49: Resilience Planning and Climate Adaptation in Upstream Operations

❖Chapter 50: The Road Ahead—A Strategic Blueprint for Net-Zero Upstream Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 1: Understanding the Climate Challenge

 

 

 

 

 

 

 

 

1.1 Introduction

Climate change is no longer a distant threat—it is a present-day crisis affecting every sector, every region, and every community. Rising temperatures, shifting weather patterns, melting glaciers, and extreme events like floods and droughts all point to a world struggling to remain in balance. At the center of this disruption lies a persistent and growing buildup of greenhouse gases (GHGs), largely from the burning of fossil fuels. The upstream oil and gas sector—responsible for extracting and processing hydrocarbons before they reach consumers—plays a pivotal role in this equation.

Understanding the scope and scale of the climate challenge is the first step toward developing effective strategies for mitigation. In this chapter, we explore the science of climate change, the global response, and the upstream sector’s contribution to the problem and its potential to be part of the solution.

 

1.2 The Science of Climate Change

The Earth's climate system is driven by energy from the sun. Greenhouse gases in the atmosphere trap a portion of this energy, keeping the planet warm enough to sustain life. However, since the Industrial Revolution, human activity—particularly the combustion of fossil fuels like oil, gas, and coal—has significantly increased the concentration of GHGs, especially carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O).

According to the Intergovernmental Panel on Climate Change (IPCC), human activities have caused approximately 1.1°C of global warming above pre-industrial levels. Without deep reductions in emissions, the world is on track to exceed 1.5°C between 2030 and 2052, triggering irreversible environmental damage.

Key Greenhouse Gases:

1. Carbon Dioxide (CO₂): Produced by burning fossil fuels; long atmospheric lifetime.
   

1. Methane (CH₄): Highly potent over short timescales; released during natural gas production and transport.
   

1. Nitrous Oxide (N₂O): Emitted from combustion and industrial processes.
   

 

1.3 The Carbon Budget

To limit global warming to 1.5°C, the IPCC estimates that humanity can emit only about 500 gigatonnes of CO₂ from 2020 onward. At current emission rates (about 40 GtCO₂ per year), this budget would be exhausted within 12–15 years.

The implications for the fossil fuel industry are stark. To stay within this carbon budget, a substantial portion of known oil and gas reserves must remain unexploited. This introduces the concept of stranded assets—fossil fuel resources that cannot be profitably developed if climate goals are to be met.

 

1.4 Emissions by Sector: Where Oil and Gas Fits

The global emissions landscape is diverse, but energy production and use remain the largest contributors. The oil and gas sector contributes to emissions in two ways:

1. Direct emissions (Scope 1): From operations—combustion, flaring, venting, and fugitive methane emissions.
   

1. Indirect emissions (Scope 2 and 3): From purchased energy and especially from end-use combustion (e.g., gasoline burned in cars).
   

Breakdown of Global GHG Emissions (approximate):

1. Electricity and Heat Production: 25%
   

1. Industry: 21%
   

1. Transportation: 14%
   

1. Agriculture, Forestry: 24%
   

1. Buildings: 6%
   

1. Other Energy (including upstream O&G): 10%
   

The upstream segment specifically contributes to about 5–7% of global GHG emissions through operational processes, but it enables a much larger share through the supply of fuels that generate Scope 3 emissions downstream.

 

1.5 Global Climate Agreements

International climate governance has evolved significantly in recent decades:

The Kyoto Protocol (1997)

1. First binding international treaty to reduce GHGs.
   

1. Focused mainly on developed nations.
   

The Paris Agreement (2015)

1. Aimed to limit warming to well below 2°C, ideally 1.5°C.
   

1. Countries submit Nationally Determined Contributions (NDCs).
   

1. Emphasizes common but differentiated responsibilities.
   

COP26 and Beyond

1. Emphasis on net-zero targets by mid-century.
   

1. Growing pressure on fossil fuel producers to phase out unabated production.
   

1. Emerging global carbon pricing frameworks.
   

 

 

1.6 Climate Change and the Oil & Gas Sector: A Critical Juncture

The upstream oil and gas sector is uniquely positioned. It is both a significant emitter and a potential source of solutions. Many operators now face a dual mandate:

1. Continue meeting global energy demand, especially in developing countries.
   

1. Rapidly reduce carbon intensity, adopt new technologies, and prepare for a low-carbon future.
   

This transition is not only about environmental responsibility—it is about business continuity. Investors, regulators, and consumers are increasingly aligning their choices with climate-conscious principles. Companies that fail to adapt may face existential risks.

 

1.7 Key Concepts for This Book

Before diving into strategies, it's important to understand the core ideas that will be used throughout this book:

1. Scope 1, 2, 3 Emissions: Emissions from operations, energy consumption, and end-use of products.
   

1. Carbon Intensity: Emissions per unit of energy produced.
   

1. Flaring and Venting: Practices that release GHGs directly into the atmosphere.
   

1. CCUS: Technology to capture and store CO₂ emissions from production.
   

1. Transition Risk: Financial risks from shifts toward a low-carbon economy.
   

1. Net-Zero: A state in which all GHGs emitted are balanced by removals.
   

 

1.8 Conclusion

The climate challenge is vast, urgent, and deeply interconnected with the oil and gas industry. The upstream segment, while historically a significant contributor to emissions, also has the technical expertise, capital, and infrastructure to lead the transition. Whether it will do so swiftly and seriously remains to be seen. The next chapters explore the pathways available—and the consequences of inaction.

 

 

 

 

Chapter 2: The Role of Upstream Oil & Gas

 

 

 

 

 

 

 

 

2.1 Introduction

The oil and gas industry is typically divided into three sectors: upstream, midstream, and downstream. Among these, the upstream sector—encompassing exploration, drilling, and production—is the critical first link in the hydrocarbon value chain. It is also one of the most carbon-intensive phases of fossil fuel development.

This chapter examines the unique characteristics of the upstream sector, how it contributes to greenhouse gas (GHG) emissions, and why any meaningful climate strategy must begin at the source.

 

2.2 Defining Upstream Operations

Upstream oil and gas refers to the initial stages of energy development:

1. Exploration: Geophysical surveys, seismic imaging, and testing to locate hydrocarbon deposits.
   

1. Drilling: Creation of wells to extract oil or natural gas.
   

1. Production: Extraction and separation of crude oil, natural gas, and water; transport to processing or pipeline systems.
   

This sector is capital-intensive, technologically advanced, and highly sensitive to geopolitical, geological, and price-related risks.

Key Facility Types:

1. Onshore production fields
   

1. Offshore platforms
   

1. Floating Production Storage and Offloading (FPSO) units
   

1. Shale/tight oil fields (unconventional)
   

1. Gas processing plants (where applicable)
   

 

2.3 GHG Emissions from Upstream Activities

While the upstream sector does not directly emit as much as the transportation or power sectors, its emissions are significant—and preventable. Upstream emissions are primarily Scope 1 and Scope 2, and they also enable Scope 3 emissions.

Major Emissions Sources:

 

Methane, in particular, is a potent GHG—more than 80 times as warming as CO₂ over a 20-year timeframe. Because methane is the main component of natural gas, leaks and venting are serious concerns.

 

2.4 Emissions by Lifecycle Stage

Understanding where emissions occur in the upstream lifecycle is essential for targeting reduction strategies.

Lifecycle Emissions Breakdown:

1. Pre-production: Land clearing, seismic surveys, drilling pad construction
   

1. Drilling & Completion: Fuel combustion, hydraulic fracturing
   

1. Production: Gas separation, pumping, flaring, venting, fugitive emissions
   

1. Processing & Transport to Midstream: Compression, dehydration, electricity use
   

On average, upstream operations account for:

1. ~5–10% of total lifecycle emissions for oil
   

1. ~10–20% for natural gas (higher if methane leakage is unaddressed)
   

In heavy oil or shale plays, these percentages are even higher due to greater energy requirements per barrel.

 

2.5 Unconventional vs Conventional Production

Conventional oil and gas is extracted using traditional vertical wells from reservoirs where hydrocarbons flow naturally. Unconventional methods involve more complex, energy-intensive processes—such as horizontal drilling and hydraulic fracturing (fracking)—to access tight formations.

 

Oil sands, ultra-deepwater fields, and shale gas are often considered “carbon-heavy” sources due to their resource-to-emissions ratios.

 

2.6 Regional Emissions Patterns

Different producing regions exhibit vastly different emissions profiles, depending on infrastructure, regulations, and technological adoption.

Examples:

1. Middle East: Low carbon intensity per barrel due to large conventional reserves, but flaring remains a challenge.
   

1. North America: Higher emissions from shale, but better LDAR and satellite monitoring practices.
   

1. Russia: High flaring volumes, aging infrastructure.
   

1. Africa: Underregulated fields, often with high methane venting.
   

Benchmarking carbon intensity by geography and operator is now an emerging ESG practice.

 

2.7 Scope 3: The Elephant in the Room

While upstream companies primarily focus on reducing Scope 1 and 2 emissions, the Scope 3 emissions—those produced when the oil or gas is ultimately burned—are much larger. For many upstream producers, Scope 3 accounts for over 80–90% of total emissions associated with their products.

Although traditionally considered beyond the control of upstream firms, pressure is mounting for companies to take responsibility—either through:

1. Product decarbonization (e.g., blue hydrogen, carbon offsets)
   

1. Carbon-neutral crude initiatives
   

1. Investments in renewable energy
   

 

2.8 Why Upstream Matters for Climate Action

The upstream sector is at the frontline of opportunity for climate mitigation. Why?

1. Early interventions are cheaper: Emissions prevented at the source avoid cascading downstream effects.
   

1. Infrastructure is long-lived: Decisions made today will lock in emissions profiles for decades.
   

1. High leverage on methane: Methane abatement offers a fast path to climate impact.
   

1. Technology exists: From electrification to flaring minimization, proven solutions are available now.
   

 

2.9 Industry Trends and Stakeholder Pressure

Investor Demands:

1. Emissions disclosure (TCFD, SASB, CDP)
   

1. Climate risk integration
   

1. Low-carbon investment preferences
   

Regulatory Trends:

1. Carbon pricing schemes expanding (EU ETS, Canada, China)
   

1. Mandatory methane monitoring (e.g., US EPA rules, OGMP 2.0)
   

1. Limits on flaring and venting
   

Social License to Operate:

1. Public scrutiny of oil projects
   

1. Youth-led climate activism
   

1. Community resistance to new developments
   

 

2.10 Conclusion

The upstream oil and gas sector holds both responsibility and potential in the climate fight. It is uniquely positioned to reduce emissions through better design, technology adoption, and operational discipline. While the scale of the problem is large, so too is the opportunity for transformation.

Strategic climate action must begin upstream.

 

 

 

 

 

 

 

 

Chapter 3: The Regulatory Landscape

 

 

 

 

 

 

 

 

3.1 Introduction

No discussion of climate strategies in the upstream oil and gas (O&G) sector can ignore the growing web of international, national, and regional regulations. Regulatory frameworks increasingly define how, where, and under what conditions fossil fuel operations can proceed. Climate-aligned policies—from carbon pricing to methane regulations—are reshaping the economic calculus for upstream operators.

This chapter explores the evolving regulatory landscape that governs climate and environmental performance in the upstream sector, highlighting key global agreements, national policies, and emerging compliance mechanisms.

 

3.2 Global Climate Agreements and Frameworks

3.2.1 United Nations Framework Convention on Climate Change (UNFCCC)

The UNFCCC, adopted in 1992, laid the foundation for global climate governance. Though initially voluntary in approach, it paved the way for binding agreements later on.

3.2.2 The Kyoto Protocol (1997)

1. First legally binding treaty to reduce GHGs.
   

1. Focused primarily on developed countries.
   

1. Introduced market mechanisms (e.g., Clean Development Mechanism).
   

3.2.3 The Paris Agreement (2015)

1. Landmark treaty signed by nearly 200 countries.
   

1. Aims to limit global temperature rise to well below 2°C, ideally 1.5°C.
   

1. Countries submit Nationally Determined Contributions (NDCs) every 5 years.
   

1. Emphasizes net-zero emissions in the second half of the century.
   

3.2.4 COP Summits (e.g., COP26, COP28)

1. Platforms for negotiation, progress updates, and new commitments.
   

1. Recent outcomes emphasize methane reduction, fossil fuel phase-down, and carbon market rules under Article 6.
   

 

3.3 National and Regional Climate Policies

3.3.1 United States

1. EPA Methane Rules: Tightening requirements on flaring, venting, and leak detection.
   

1. Inflation Reduction Act (IRA): Allocates billions for clean energy and methane abatement.
   

1. Social Cost of Carbon: Incorporated into federal permitting.
   

1. Subnational efforts: California cap-and-trade, state-level zero-emissions goals.
   

3.3.2 European Union

1. EU Emissions Trading System (ETS): Cap-and-trade scheme covering heavy industry and power.
   

1. Methane Strategy: New regulations for monitoring and reporting methane.
   

1. Carbon Border Adjustment Mechanism (CBAM): Will tax embedded emissions in imports—including refined fuels.
   

3.3.3 Canada

1. Carbon Tax: National minimum price on carbon.
   

1. Methane Regulations: Mandated 45% reduction from 2012 levels by 2025.
   

1. Net-Zero Emissions by 2050 Act: Binding target with sectoral strategies.
   

3.3.4 Middle East

1. Countries like UAE and Saudi Arabia launching national net-zero targets (UAE by 2050; KSA by 2060).
   

1. Focus on flaring reduction, carbon capture (CCUS), and hydrogen.
   

3.3.5 China

1. National ETS (initially covering power sector; expected to expand to O&G).
   

1. Five-Year Plans emphasize clean energy and efficiency in industrial sectors.
   

3.3.6 Africa & Latin America

1. Often constrained by limited institutional capacity.
   

1. Growing participation in carbon markets, nature-based offsets, and adaptation finance.
   

 

3.4 Carbon Pricing Mechanisms

Carbon pricing is a key tool to internalize the cost of emissions and influence upstream investment decisions.

3.4.1 Carbon Taxes

1. A fixed price per ton of CO₂ equivalent emitted.
   

1. Predictable but doesn’t guarantee reductions.
   

1. Adopted in countries like Canada, Norway, and South Africa.
   

3.4.2 Emissions Trading Systems (ETS)

1. A cap is set on emissions; allowances are traded in a market.
   

1. Creates a financial incentive to emit less.
   

1. EU ETS is the largest and most mature system globally.
   

3.4.3 Hybrid Systems

1. Combine taxes and trading schemes (e.g., UK, Mexico).
   

3.4.4 Internal Carbon Pricing

1. Voluntary internal price used by corporations for investment planning.
   

1. Used by Shell, BP, Equinor, and others.
   

 

3.5 Methane-Specific Regulations

Methane is a primary concern for upstream operations. Its regulation is intensifying.

Examples of Methane Policy Instruments:

1. OGMP 2.0: UN-led voluntary program for robust methane reporting.
   

1. EPA's Clean Air Act Section 111: Covers new and existing methane sources in the U.S.
   

1. EU Methane Strategy: Includes mandatory MRV (Monitoring, Reporting, Verification).
   

1. Satellite Monitoring Mandates: Expected in multiple jurisdictions by 2030.
   

 

3.6 Disclosure and Transparency Requirements

Investors, regulators, and the public are increasingly demanding transparent climate disclosures.

Major Frameworks:

1. Task Force on Climate-related Financial Disclosures (TCFD)
   

1. Sustainability Accounting Standards Board (SASB)
   

1. International Sustainability Standards Board (ISSB)
   

1. Global Reporting Initiative (GRI)
   

Reporting Trends:

1. Scenario analysis (aligned with IEA, NGFS, or IPCC pathways)
   

1. Emissions intensity metrics (per barrel of oil equivalent)
   

1. Physical vs. transition risk disclosures
   

Regulatory adoption is accelerating, with jurisdictions like the EU, UK, and Canada mandating TCFD-aligned disclosures for large firms.

 

3.7 Legal and Fiduciary Risks

Fossil fuel companies now face increasing legal risks related to climate:

1. Climate litigation: Lawsuits against oil companies for climate damage or misleading shareholders.
   

1. Greenwashing accusations: Risk of reputational and legal damage for unsubstantiated climate claims.
   

1. Fiduciary duty: Growing expectation that boards and executives manage climate-related risks as material financial risks.
   

 

3.8 Compliance Challenges for Upstream Operators

Key Pain Points:

1. Data accuracy: Especially for fugitive emissions and methane.
   

1. Cross-border inconsistency: Complex compliance for multinational firms.
   

1. Technology deployment: Monitoring tools, LDAR systems, and CCUS are capital intensive.
   

1. Cost competitiveness: Especially for smaller operators and NOCs.
   

 

3.9 Moving Toward Standardization

There is a growing movement to harmonize and standardize climate regulation across borders and sectors:

1. International Organization for Standardization (ISO 14064, 50001) for GHG measurement and energy management.
   

1. GHG Protocol: Widely used framework for corporate emissions accounting.
   

1. Carbon accounting digital platforms: Automating emissions tracking (e.g., Aker Carbon Capture, GHGSat, Project Canary).
   

 

3.10 Conclusion

The regulatory landscape for upstream oil and gas is becoming more complex, stringent, and globally interconnected. Climate-aligned regulation is no longer a theoretical risk—it is an operational and financial reality. Leading companies are embracing not just compliance but regulatory shaping: participating in policy development, piloting early solutions, and exceeding minimum standards.

In the chapters to come, we turn from the rules to the strategies—what companies can do to stay competitive, compliant, and climate-responsible.

 

 

 

 

 

 

 

 

 

 

 

Chapter 4: Emission Reduction Pathways

 

 

 

 

 

 

 

 

4.1 Introduction

While regulations and international frameworks set the direction for climate action, it is the execution—what companies actually do—that determines progress. In the upstream oil and gas (O&G) sector, reducing emissions is both a technical challenge and a strategic imperative. Fortunately, a wide array of emission reduction pathways exist, many of which are technologically mature and economically viable.

This chapter provides a detailed look at the practical strategies available to upstream companies to lower greenhouse gas (GHG) emissions, including operational efficiencies, electrification, methane abatement, carbon capture, and beyond.

 

4.2 Emissions Reduction Hierarchy

Before diving into specific measures, it’s helpful to frame emissions reduction in terms of a hierarchy of action:

1. Avoid emissions (e.g., eliminate flaring)
   

1. Reduce emissions intensity (e.g., through efficiency)
   

1. Substitute with lower-carbon energy (e.g., electrify from renewables)
   

1. Capture and store residual emissions (e.g., CCUS)
   

1. Offset unavoidable emissions (e.g., through verified carbon credits)
   

 

4.3 Methane Mitigation

Methane (CH₄) is the upstream sector’s most immediate climate opportunity. Because of its potency and short atmospheric lifetime, tackling methane delivers fast climate benefits.

4.3.1 Leak Detection and Repair (LDAR)

1. Regular inspections using infrared cameras, drones, satellites, and IoT sensors.
   

1. Industry best practice: Quarterly LDAR programs using Tier 3 technology.
   

4.3.2 Pneumatic Equipment Replacement

1. Pneumatic controllers and pumps powered by natural gas often leak methane.
   

1. Electrification or compressed air alternatives can eliminate these emissions.
   

4.3.3 Vapor Recovery Units (VRUs)

1. Capture and compress volatile organic compounds (VOCs) and methane from storage tanks for resale or use.
   

4.3.4 Flaring and Venting Minimization

1. Use of flare gas recovery systems.
   

1. Pressure management to prevent over-venting.
   

1. Zero Routine Flaring initiative (World Bank target: 2030).
   

Cost-effectiveness: Many methane mitigation options have negative or near-zero abatement cost, meaning they pay for themselves by capturing and selling gas.

 

4.4 Energy Efficiency Improvements

Improving energy efficiency in upstream operations reduces both emissions and operating costs.

Common Measures:

1. Variable speed drives on pumps and compressors.
   

1. Waste heat recovery systems.
   

1. Advanced analytics to optimize energy use per barrel.
   

1. Improved insulation and process design in facilities.
   

Digital Tools:

1. Artificial intelligence (AI) for predictive maintenance.
   

1. Digital twins to simulate operations and identify inefficiencies.
   

Energy efficiency often delivers immediate ROI, especially in mature fields or aging infrastructure.

 

4.5 Electrification of Operations

Switching from fossil-fuel-based onsite generation to grid-supplied or renewable electricity can significantly cut emissions.

Types of Electrification:

1. Electrified drilling rigs
   

1. Electric submersible pumps (ESPs)
   

1. Battery-electric vehicles (BEVs) for onsite transport
   

1. Grid-connected offshore platforms
   

The effectiveness depends on grid carbon intensity—electrification in Norway (hydropower grid) has far greater benefits than in regions reliant on coal-fired electricity.

 

4.6 Carbon Capture, Utilization, and Storage (CCUS)

CCUS is critical for hard-to-abate emissions, particularly in gas processing and high-pressure operations.

Applications in Upstream:

1. Natural gas sweetening (CO₂ removal from raw gas).
   

1. Post-combustion capture on turbines and compressors.
   

1. Injection into depleted reservoirs or saline aquifers.
   

Utilization Options:

1. Enhanced Oil Recovery (EOR)
   

1. Use in concrete, carbonates, or polymers (less mature markets)
   

Challenges:

1. High capital cost.
   

1. Need for robust monitoring and long-term liability frameworks.
   

1. Often requires regional or government partnerships to be viable.
   

 

4.7 Renewable Integration

While upstream facilities are not usually associated with renewables, they can integrate them in several ways:

1. Solar panels at remote sites for telemetry and lighting.
   

1. Wind power to supplement grid demand.
   

1. Hybrid microgrids for off-grid operations (e.g., solar

   Imprint

   Publisher: BookRix GmbH & Co. KG

   Publication Date: 07-11-2025
   ISBN: 978-3-7554-8144-7
   

   All Rights Reserved