Wireline Issue 46 - Autumn 2019

Operators are responsible for the emissions that result from the production of oil and gas. It is imperative that companies consider all options for lowering their emissions, including collaborating with others. Tackling emissions, together

T he energy transition and the need for drastic change is at the centre of almost every public conversation operators and policy makers are having — and rightly so. The special report presented by the Intergovernmental Panel on Climate Change (IPCC) last year highlighted the need to hold global warming to 1.5°C rather than 2°C; currently, we are on course to exceed a 2°C carbon budget as soon as 2037. In May 2019, the Committee on Climate Change (CCC) published its formative report titled, Net Zero: The UK's contribution to stopping global warming . In this report, the CCC — an independent body established under the Climate Change Act 2008 that advises the government on setting and meeting carbon budgets and preparing for climate change — outlines the actions that need to be taken to ensure the UK achieves net-zero carbon emissions by 2050. The extraction, stabilisation and export of hydrocarbons requires processes that result in the emission of greenhouse gases (GHGs) like CO 2 , methane, and oxides. These processes include combustion to provide electrical power and drive compressors and pumps, the flaring of excess gas for safety or during well testing and tank loading. Incidental releases of GHGs also occur from other platform equipment such as refrigeration. The CCCs analysis considers four technologies for lowering industry emissions: electricity or hydrogen connections to offshore platforms; flare gas recovery; on-site carbon capture; and leak detection and repair (LDAR) for reducing methane leakage. In 2018, emissions resulting from the production of oil and gas at offshore installations in the UK accounted for 3% of total UK GHG emissions, or 14.63 million tonnes of carbon dioxide equivalent (CO 2 e). The recommendation from the CCC is that, if we are to achieve the goal of being carbon neutral in 2050, this figure needs to fall to under 0.5 million tonnes CO 2 e by 2050. Many operators in the North Sea have begun deploying and trialling new technologies to reduce emissions from the two activities that contribute the most to production-related emissions: offshore power generation and gas venting/flaring. Powering offshore activity The biggest contributor to offshore emissions is power generation, which is responsible for 74% of emissions on the UKCS. As such, it is one of the areas where the greatest impact can be had.

Power is needed offshore to run operations and support crew living quarters. This power is typically supplied via a small power plant (usually a gas turbine) on the offshore platform. Connecting platforms to the onshore power grids (supplying power from existing infrastructure on land), removes the need to generate power separately offshore. Connecting to the grid also enables access to more efficient power plants and to other, lower-carbon sources of electricity such as natural gas or renewable energy from wind and solar. Norway is leading the way in this area, having pushed for electrification from shore on many of the newer platforms on the Norwegian Continental Shelf, maintaining its status as one of the world’s most carbon-efficient oil and gas producers. This change came as a result of a Norwegian carbon tax introduced in 1991 on CO 2 emitted from the production of oil and gas. As a result of this tax, Norwegian companies were driven to introduce technology like carbon capture and Production of oil and gas in the UK accounted for 3% of total UK GHG emissions, or 14.63 million tonnes CO 2 e. This figure needs to fall to under 0.5 million tonnes CO 2 e by 2050.

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