Reducing energy consumption is the most cost-effective strategy for lowering greenhouse gas (GHG) emissions. According to the International Energy Agency (IEA), enhancing energy efficiency could contribute up to 40% of the emissions reductions needed under the Paris Agreement.

Given that the extraction and transformation of hydrocarbons consume substantial energy, improving energy efficiency is a critical initiative for the oil and gas industry.

Ipieca members work to improve energy conservation or efficiency in their operations. The industry is making significant investments in new technologies and research, including the energy-efficient design of plants, advanced computer controls, sophisticated reservoir modelling to increase production efficiencies, innovative extraction and processing methods, and improved technologies for monitoring equipment efficiency in the field.

Furthermore, there is a financial incentive for reducing energy losses for both energy companies and consumers by decreasing energy costs in refining, processing, transmission, and distribution.

Member progress

All members
Have GHG emissions reduction initiatives*
78% of members
Have set ambitions for net-zero emissions (Scope 1 and 2) by or around 2050)*

Examples of member action

  • Connecting electrical submersible pumps substations to Gamba Power Plant
    Map-pinGabon

    Assala Energy uses electrical submersible pumps (ESP) on its wells to improve its efficiency and increase its production, and ESP substations to direct energy to these pumps. At its Gamba-Ivinga field, these pumps were powered by diesel generators, which generate GHG emissions.

    The Gamba Power Plant (GPP) was completed in September 2021, providing gas-powered energy and the capacity to start replacing some of these diesel generators. By year-end 2021, three ESP substations were connected to GPP. By the end of Q1 2022, 14 ESP wells were connected to these substations. The new power system has a capacity to handle up to 30 ESP wells.

    Outcomes:

    • Reduced need for gaslift: compression capacity is freed up either to decrease Assala's reliance on high-pressure gas from gas fields, or to reinject gas into the reservoir, meaning less gas flaring
    • Reduced greenhouse gas emissions resulting from ESP operations: some diesel generators were replaced with gas turbines
    • Reduced diesel consumption: connecting 13 ESP wells to GPP equates to a saving of approximately 450m of diesel per month
    • Reduced requirement for diesel transportation: less diesel is transported to our remote sites, resulting in an overall reduction in our carbon footprint

    Learn more

  • Waste heat recovery
    Map-pinUnited Arab Emirates

    A US$ 600 million (AED 2.2 BN) waste heat recovery project will revolutionise power and water generation at ADNOC's General Utilities Plant in Ruwais. By using heat generated at the site to propel two new steam-powered turbines, ADNOC will be able to produce an additional 62,400 cubic meters of distillate water per day and 230 megawatts of power.

    Upon completion in 2023, the innovation will increase the thermal efficiency of the site by nearly 30% and reduce dependence on the national grid. The General Utilities Plant provides electricity and water to the entire Ruwais industrial complex. It is vital to the ongoing expansion of Ruwais as part of ADNOC's 2030 smart growth strategy.

    Learn more

  • Advanced artificial lift systems for enhanced efficiency
    Map-pinUnited States of America

    SLB has launched two advanced artificial lift systems: The Reda™ Agile™ compact wide-range electric submersible pump (ESP) system and the rodless Reda PowerEdge™ electric submersible progressing cavity pump (ESPCP) system. Their breakthrough designs deliver enhanced reliability and efficiency.

    These technologies improve operational stability, enabling faster installation, optimised production, and enhanced recovery, while reducing operating costs. Connecting the systems to digital services provides continuous live surveillance and real-time optimisation to maximise uptime and extend equipment life.

    The PowerEdge ESPCP system is a more energy-efficient rodless alternative for low-flow production rates in mature conventional and unconventional wells. The system lowers power consumption and related CO2 emissions by up to 55%.

    The agile ESP system provides unparalleled operational flexibility, improving economics and efficiency while reducing the overall cost of operation.

    The wide-range capabilities of these two systems enable continuous operation over a broader range of production conditions than any artificial lift systems currently on the market. Their innovative designs also bring new efficiency to deployment through reduced installation time and improved proximity to the reservoir.

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  • Improving energy efficiency at OxyChem plants
    Map-pinUnited States of America

    OxyChem operates a billion pound-per-year capacity ethylene cracker at its plant in Ingleside, Texas.

    OxyChem incorporated significant energy efficiency features, such as the use of byproduct hydrogen gas as fuel and recovery of surplus heat from the process and flue gas outlet of the cracking furnaces. Another unique aspect of this project is the use of two thermal oxidisers equipped with boilers to combust low pressure gases from process equipment and storage vessels. These thermal oxidisers are designed to provide high emissions control and generate steam from the surplus heat.

    OxyChem estimates that it is eliminating approximately 970,000 metric tons per year of total CO2e due to the highly efficient design.

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  • Education and investment in energy efficiency
    Map-pinRomania

    România Eficientă' is a unique initiative in Romania, aimed to create a culture of energy efficiency in the building sector. The project has two major dimensions: on the one hand, a dimension of information, education and public awareness and, on the other hand, one of major renovation works at nZEB standards, in public schools in Romania. Both perspectives open new paths in an area of great potential for Romania and strongly emphasised in the energy-climate policies of the European Union, centered around the principle of 'energy efficiency first'. The project becomes all the more important in the context of the European Green Deal, which places great emphasis on energy efficiency, one of the main pillars of the new European policies, and on building renovation

    This is the largest private project of national interest dedicated to energy efficiency in buildings and has entered 2022 the stage of renovation of partner schools ('Elie Radu' High-School in Ploieşti, Liliești Secondary School – Băicoi, Prahova County) and technical documentation of a kindergarten (Ovidiu, Constanța County). In 2022, OMV Petrom granted for 'România Eficientă' approximately EUR 8 million for the renovation of 6 other educational units until 2026. In 2022, 'România Eficientă' received the external recognition as 'Energy Efficiency Programme of the Year', within the Energy Gala Awards – The Diplomat Bucharest.

    Learn more

Related resources

Good practice guidance, awareness briefings and webinars to support companies to implement energy efficiency technologies and practices.

TitleType
Compendium of energy and GHG efficient technologies and practicesViewArrow-right
Managing our emissions: Energy conservation and beyond (The Paris Puzzle)Fact sheetViewArrow-right
Saving energy in the oil and gas industry (2013)Awareness briefViewArrow-right

View the Ipieca Principles toolkit and Ipieca-WBCSD SDG Roadmap for more suggested actions, useful resources and reference points.

*Stats based on desktop research conducted on member companies April 2025.

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