Climate Action 2012-2013

ENERGY AND POWER
incorporating steps such as:
Accurate monitoring and reporting of GHG
emissions along the value chain;
Reduction in GHG emissions intensity in
operations through more efficient use of
energy (see box), reduced flaring, advances
in drilling and production techniques,
investment in co-generation facilities and the
use of natural gas for electricity generation;
Research, development and deployment of
carbon capture and storage (CCS) technology,
typically alongside enhanced oil recovery
(EOR). EOR improves the economics
of CCS and can facilitate the commercial
deployment of CCS;
Development of conventional fossil fuel
reserves and other sources such as gas from
shale and crude oil from oil sands using
increasing knowledge to extract these
resources efficiently;
Investment in renewable energy and other
low emission technologies including
hydrogen, biofuels and fuel cells, and
cleaner fuels such as liquefied natural gas
(LNG). Technological innovation will play
a central role in the energy industry’s ability
to increase supply, improve efficiency and
reduce emissions;
Consumer education to use energy more
efficiently. An example is EUROPIA’s ‘Save
more than fuel’ campaign that provides
drivers with tips to improve their fuel
efficiency, saving them money while cutting
GHG emissions.
COMPANY FOCUS ON ENERGY
SAVINGS
Finding ways to use energy more efficiently can
make a major contribution to moving the world
onto a more sustainable energy path. Oil and gas
companies have a strong financial incentive to
save energy, because of the large share of energy
in the overall cost of operating their facilities.
Efficient energy use reduces costs along the
whole supply chain and makes energy more
affordable to consumers (see box). In fact, the
industry manages to keep energy consumption
from the production and supply of a standard
gasoline or diesel product to less than 18 per cent
of that delivered throughout their life. Efficiency
per unit of output, a broader term that includes all
petrochemicals produced, is greater still.
Investments in energy efficiency are not always
reflected fully in the wider trends for energy
3%
16%
11%
Coal
Oil
Gas
Nuclear
8%
21%
16%
25%
Hydro
Biomass
Other
renewables
Figure 1. World primary energy demand in 2035
under a 450 parts per million CO 2
-equivalent scenario
(IEA World Energy Outlook 2011)
Source: World Energy Outlook, IEA, 2011
PRODUCTION EFFICIENCY:
SAVING ENERGY ALONG THE
SUPPLY CHAIN
Industry efforts to improve the efficiency of
oil and gas supply processes, combat waste
and reduce emissions include:
Energy systems management, involving
the use of information technology
to analyse and control energy
consumption in production and
refining processes;
More efficient exploration, through
improved drilling success rates thanks
to advances in seismic surveying and
analysis, and drilling techniques;
Co-generation of heat and power
and the recovery of waste heat from
production units using heat exchangers;
Reduced flaring and venting of
associated gas, through investment in
gas processing and distribution;
Improved process operations and
equipment, such as more efficient
pumps and compressor turbines; and
High pressure pipelines, which require
less energy input per unit of oil or gas
transported per kilometre.
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