- Electrifying oil and gas infrastructure can cut CO2 emissions by up to 80%, and Norway, with its abundant renewable resources, is leading the charge.
- If 50% of identified Premium Energy Basins adopt electrification, global emissions could decrease by 5.5 gigatons of CO2 by 2050.
- Transitioning to renewable energy lowers emissions, reduces long-term operating costs, and creates potential new revenue streams from surplus energy.
A recent study by Rystad Energy shows that electrifying oil and gas infrastructure can reduce production-related CO2 emissions by up to 80%. This strategy emerges as a critical solution in an industry still heavily reliant on fossil fuels.
The analysis indicates that electricity from renewable sources or previously flared gas can significantly cut emissions. On the Norwegian continental shelf, electrified installations emit only 1.2 kg of CO2 per barrel of oil equivalent (boe). Before conversion, emissions stood at 8.4 kg. This reduction highlights the energy transition’s potential benefits.
Norway leads this transformation. The country boasts abundant renewable resources, primarily hydroelectric power. Many production sites sit near green electricity infrastructures, making the switch easier. By 2040, Norway expects a 70% reduction in emissions from offshore platforms, achievable with continued investment.
In contrast, major oil-producing nations like the USA and Saudi Arabia face more significant challenges. These countries encounter logistical hurdles, such as remote onshore electricity infrastructure and limited renewable energy capacity, which slow the energy transition. However, Rystad Energy suggests that even partial electrification can significantly reduce emissions.
The firm identifies 30 Premium Energy Basins (PEBs) that account for over 80% of global oil and gas production. If 50% of these basins adopt electrification, global emissions could drop by 5.5 gigatons of CO2 by 2050. This change would greatly assist in decarbonising the sector.
Beyond electrification, better management of gas flaring offers another path to emissions reduction. Approximately 140 billion cubic meters of gas flare annually, generating nearly 290 million tonnes of CO2.
Flaring is a common practice in Africa, the Middle East, and North America, and it poses a significant challenge. Introducing economic incentives and stricter regulations can help reduce flaring’s environmental impact.
In identified basins like Rub al Khali and Central Arabian, limiting flaring and electrifying operations could prevent the release of 370 million and 251 million tonnes of CO2, respectively, from 2025 to 2030.
Electrifying oil installations addresses environmental issues and offers financial benefits. Renewable energy can lower emissions and cut long-term operating costs. Electrified sites could even sell surplus energy, creating new revenue streams.
However, the transition demands substantial investment and careful planning. Electricity infrastructure must adapt, especially in remote areas. The economic feasibility of these projects relies on collaboration between governments and companies to overcome technical challenges.
Despite the hurdles, Rystad Energy’s projections show that partial electrification can reduce emissions. These initiatives will likely become essential as regulatory and economic pressures to decarbonize the energy sector increase.
In conclusion, electrifying oil and gas infrastructure presents a significant opportunity for emissions reduction. While Norway leads the way, other countries can also benefit from this shift. The industry can move toward a cleaner, more sustainable future with targeted investment and collaboration. Electrifying oil installations is critical in addressing climate change and achieving global decarbonization goals.