Energy efficiency as an accelerator to environmental and operational performance

Abstract

As oil and gas operators continue to enhance and start implementing their plans to meet their regulators’ and customers’ net-zero related demands, the industry should not overlook those low-hanging fruit that will bear results in the short term and, if done well, also contribute to long-term objectives. An effective approach to energy management will contribute to environmental, operational and financial outcomes, by addressing resource scarcity and price volatility, delivering on licence-to-operate considerations, complying with regulations, and delivering a competitive advantage through greater efficiency and enhanced reputation. Key considerations are as follows. Data quality: fuel, power, steam, condensate balances will highlight data gaps and inconsistencies. Energy usage: inefficiencies in operations such as boilers, turbines, as well as systemic issues, such as cycle efficiency and steam and condensate losses, can be identified. Emissions monitoring and reporting: clear and consistent data about fuel and power consumption directly feeds into greenhouse gas corporate reporting schemes. Quality assurance of monitoring and reporting processes: review and challenge dashboards and reports for completeness, accuracy and clarity. Management operating system: redesign management processes to improve workflows and optimise operations. Loss accounting: Production and Energy Loss Accounting (PELA) improves staff collaboration and effectively tackles hidden losses. In this paper, dss⁺ will share how, using a mix of operational efficiencies and capex, an integrated oil and gas company active in 30 countries identified potential to reduce its emissions by 38 m tonnes of CO₂ leading to over US$6 m in savings per annum over 4 years for just four of its assets.