The oil and gas industry, which is under pressure from investors and governments to reduce emissions, relies on new technologies and investments to achieve its goals, said the chairman of the Oil and Gas Climate Initiative.
OGCI, an industry body representing some of the world’s largest energy companies, including BP, Chevron, ExxonMobil, Saudi Aramco, Shell and Total, is using a billion dollar fund to invest in technologies and business models that may significantly reduce greenhouse gases. emissions.
One of the investments made is to detect and monitor natural gas leaks through infrared monitors, the deployment of drones, planes and satellites.
“You can immediately stop any leakage and it will be a game changer,” Bob Dudley, chairman of OGCI and former head of BP, said at a panel discussion at the Citizens Energy Congress on Wednesday. “The OGCI has a satellite there and sometimes we call countries and say:”[do] Do you realize you got a leak there? ‘, which helps. “
Listed oil majors around the world are under increasing pressure from activist investors, governments, courts and large institutional investors who are promoting ESG standards to reduce their carbon footprint and switch to clean energy.
ExxonMobil recently lost three of its board seats to a small activist investor Engine No. 1, which pushed the company to cut emissions.
Royal Dutch Shell was ordered by a Dutch court in the same week to cut emissions harder and faster than expected, dealing a blow to the oil company and a move that could have far-reaching consequences for the rest of the world. ‘industry. However, many of the major players in the industry have already made great strides in reducing their own carbon footprint.
“New technology is coming in all the time and there is a lot of it,” Dudley said.
One thing that can transform the energy industry “outside of renewables is hydrogen,” he said.
“It’s kind of a colorful miracle fuel … Hydrogen burns very, very efficiently with no emissions.”
Globally, the size of the hydrogen industry is expected to reach $ 183 billion by 2023, up from $ 129 billion in 2017, according to Fitch Solutions.
French investment bank Natixis estimates that investments in hydrogen will exceed $ 300 billion by 2030.
The UAE and other countries in the region are making plans to produce hydrogen and harness the potential of clean fuel.
The OGCI also invests in carbon capture, use and storage technologies to reduce emissions.
“One of the 20 investments he made is in a cement company. Cement gives us very large amounts of carbon dioxide – up to 11% of industrial carbon dioxide comes from cement. We invested in a business where you put carbon dioxide around it and it attracts it and sequesters it, ”he said.
The industry, however, faces a more difficult environment in which to invest. Oil and gas companies had to write off billions of dollars in assets during the pandemic, Dudley said.