Meeting the challenge
This section describes the actions IPIECA and its members are taking to address the risks and challenges of climate change.
The International Energy Agency (IEA) estimates that in 2030 oil and gas will account for 50% of all primary energy needs. In a sustainable energy future, industry will continue to improve the energy efficiency of its operations and products and minimize GHG emissions. The industry is working to develop its understanding of climate change and produce solutions that will reduce its greenhouse gas (GHG) emissions while meeting the growing need for energy. Improving the energy efficiency of our operations continues to be a priority, as is the development of new technologies such as carbon capture and storage (CCS).
The IPIECA Climate Change Working Group (CCWG) has established a GHG Emissions Task Force, which will identify operational and management best practices. It will initially focus on two areas: energy efficiency, and flaring and venting.
IPIECA has produced a report which summarizes IPIECA activities on climate change and highlights efforts of IPIECA member companies, illustrated by select representative case studies and related industry-led partnership projects:
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Reducing emissions, extending the life of natural resources, reducing investment and energy costs
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Preventing unplanned emissions into the atmosphere
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Preventing emissions from entering the atmosphere
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Switching to fuels with a lower carbon content
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Using fuel to generate both electricity and heat simultaneously
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Solar, wind, biomass, clean fuels and fuel cell technologies
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Example member initiatives around climate change research and actions
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Energy efficiency
Energy efficiency and conservation can make a major contribution towards moving the world onto a more sustainable energy path and will help to reconcile economic development with energy security and environmental protection. Our industry continues to invest in further improving the energy efficiency of its own operations, reducing waste and helping final consumers to use less fuel. Major challenges remain, however, including the increased energy use involved in exploiting less accessible crude oil resources and meeting tougher fuel-quality standards.
Recent studies have shown that investment in more efficient energy technologies is often the most cost-effective way of cutting demand for fossil fuels and reducing emissions of GHG and other air pollutants. Energy efficiency within the industry itself has clear commercial benefits: it reduces costs along the entire supply chain, improves suppliers’ competitiveness and makes energy more affordable for consumers. IPIECA is raising awareness of the benefits that energy efficiency will bring to the industry, and promotes the sharing of best practices.
IPIECA’s GHG Emissions Task Force is collating the industry's experiences of the technologies and practices some companies are already using to manage emissions. The TF will produce support documents, along with communicating the barriers and opportunities surrounding the implementation of various measures.
IPIECA has produced a report that examines energy use in the oil and gas industry, how the industry is saving energy, and future challenges:
The US Environmental Protection Agency’s (EPA) Natural Gas STAR programme is a voluntary partnership with our industry to adopt technologies and practices that improve operational efficiency and reduce methane emissions:
Flaring and venting
Oil production and refining operations generally use flaring (the burning of released gases) to prevent unplanned emissions into the atmosphere, and to protect equipment from dangerous levels of pressure. Venting (the releasing of gas into the atmosphere) is a less common practice - flaring is safer and achieves lower levels of GHG emissions. Flaring is closely regulated in developed countries, and is closely monitored on all new projects. But elsewhere, there are increasing numbers of projects to eliminate continuous flaring at existing installations. These have achieved significant reductions in GHG emissions. Industry partnerships with the work of the Global Gas Flaring Reduction Partnership (GGFR) in reducing flaring, and Methane to Markets (M2M) in creating demand for the gas, have been instrumental.
Carbon capture and storage
Carbon capture and storage (CCS) prevents CO2 emissions (primarily from large stationary sources such as power stations) from entering the atmosphere, and could therefore play a significant role in the effort to limit climate change. CCS collects CO2 emissions streaming from a stationary source and transports the CO2 to a storage location. A final process pumps the gas underground into a geological formation capable of isolating the CO2 from the atmosphere.
Governments and industry – especially the petroleum industry – are working to identify, develop and implement safe and secure practices for CCS operations on an industrial scale. Public acceptance will be key to the widespread application of this new technology. Projects will need to demonstrate that they can manage the risks and concerns associated with long-term CO2 storage.
IPIECA produced a report to help advance understanding of the role of CO2 capture and geological storage, and strategies to improve its performance and prospects:
Fuel switching
Oil and gas companies are large consumers of energy, for the production and transformation of our products. Fuel switching entails the use of a different fuel in combustion processes. Switching to fuels with a lower carbon content for power production, for example from coal to oil, or gas and oil to gas, can contribute to significant emissions reductions. Fuel switching projects may also include retrofit of burners, changes in the fuel supply system at the facility, or changes in the combustion air delivery system.
Cogeneration
Oil and gas operations tend to generate their own steam and heat. Cogeneration (also known as combined heat and power, CHP) is now used to improve energy efficiency at the plants. A fuel, usually natural gas, is used directly in a large power turbine that generates electricity for running the plant. The hot gases emitted from the turbine can then be used to produce hot water and steam (required to transform raw materials into consumer products) without consuming other fuel for that purpose. The overall efficiency of this process can be twice as high as older approaches, which burnt oil and gas to generate steam and bought electricity from outside companies. Cogeneration units save energy and thus both reduce carbon emissions and make economic sense.
Alternative energies
Despite the threat of climate change, worldwide demand for energy continues to grow. Society must therefore utilize all possible sources of energy. A number of oil and gas companies are already using low-carbon technologies and investing in new fossil and non-fossil fuel technologies, ranging from renewables to hydrogen, cleaner fuels, biofuels and fuel cell technologies. The biggest challenge in the race against climate change is the need to produce renewable energy on a large scale at an affordable price.
IPIECA has a selection of partnerships and case studies that illustrate actions our members, working with others, are taking in the area of alternative energies.
IPIECA’s Operations Fuels and Product Issues Committee is working on the issue of biofuels.
Case studies
Below are a number of case studies that provide an example of initiatives undertaken by IPIECA members.
- The Global Climate and Energy Project: An industry-academia partnership has established the Global Climate and Energy Project at Stanford University to research energy technology that addresses climate change.
- The CO2 Capture Project: An international group of energy companies, in conjunction with government agencies and in cooperation with educational institutions and NGOs, is pursuing technological breakthroughs for the capture and storage of CO2.
- The Global Gas Flaring Reduction Partnership: Launched at the 2002 World Summit on Sustainable Development, the Global Gas Flaring Reduction Partnership supports the efforts of the petroleum sector progressively to reduce flaring and venting of natural gas associated with crude oil production.
- The partnership for fuels and vehicles research: The European Council for Automotive R&D, the European Commission’s Joint Research Centre and CONCAWE formed a partnership in 2000 to carry out joint studies on automotive fuels and vehicles.
- The Carbon Mitigation Initiative: a partnership between BP, the Ford Motor Company and Princeton University, is seeking compelling and sustainable solutions to the carbon and climate change problem through a long-term research programme.
Categories:
- Climate change
