Emission mitigation technologies will play a key role in reducing the environmental impact of oil & gas operations as the industry’s energy transition takes place. Methods and alternatives such as biofuels, carbon capture, electric vehicles, and hydrogen, will be adopted by oil & gas companies to mitigate their net emissions.
Biofuels (or ‘renewable fuels’) are essentially fuels produced from biomass and have similar physiochemical properties as conventional fossil fuels. Biomass, through chemical processing, is converted into fuels such as biodiesel, which has lower emissions.
Carbon capture and storage (CCS) technology has gained considerable attention in the last few years. The technology has the potential to mitigate CO₂ emissions from various sectors, including energy, metallurgy, and chemicals. Oil & gas companies have used CCS in the past, mostly in gas processing plants. However, lately, the technology has gained rapid adoption in refining and petrochemical units for blue hydrogen production.
Electrification is a major threat to the oil & gas industry, as electric vehicles directly compete with the transportation segment of the oil & gas value chain. Oil & gas players are therefore reorienting and expanding their portfolios to include the electric vehicles market within their fold.
Hydrogen has been an important ingredient in industrial processes for a long time, with vital applications in petroleum refining, fertilizers, and pharmaceutical production. The growing shift towards energy transition has rendered hydrogen a vital prospect as a fuel for the future, with this depending on technologies for the production of low-carbon hydrogen and its transport and use. Further details of oil and gas companies’ energy transition strategies can be found in GlobalData’s new report, ‘Energy Transition in Oil & Gas’.