Abstract

To meet global climate targets, the oil and gas industry needs to address greenhouse gas (GHG) emissions attributable to its operations. According to the IEA, 15% of global energy-related GHG emissions arise from the process of hydrocarbon extraction and distribution.

Production facilities built today may operate for 20-30 years, by which time industries, governments and countries have committed to significant reductions in emissions. If facilities are not designed with carbon neutrality in mind, there is a risk that carbon pricing may cause projects to become uneconomic before their planned end-of-life - an expensive folly.

To meet GHG emission targets and de-risk projects it is essential that operators design and construct facilities with carbon neutrality in mind. This will future-proof their operations, ensuring that operators are active participants in a carbon neutral future.

This paper presents a pathway to the carbon neutral upstream facility. It is based on an unprecedented collaboration between McDermott, io consulting and Schneider Electric. The three partners have identified achievable actions that can reduce upstream operational greenhouse gas emissions by more than 70% with minimal cost increase over the life of the field.

The joint study on Net Zero Offshore Facilities develops the following tracks:

• Decarbonizing power

• Use of digital technology to remotely operate the facility

• Designing out fugitive emission sources and highly potent greenhouse gas usage in production equipment

• Designing out the flare systems

Introduction

According to the IEA, 15% of global energy-related GHG emissions arise from the process of hydrocarbon extraction and distribution. Production facilities built today may operate for 20-30 years, by which time industries, governments and countries have committed to significant reductions in emissions. Facilities today must be resilient in design. This entails meeting all the oil and gas codes and standards, but it also means it must meet the requirements of the global commitment to Net Zero by 2050, which is now less than 30 years away. McDermott, Schneider and Io consulting have developed an offshore platform that can reduce emissions by 76% with a minimal increase in total cost. There is also a pathway to get to zero emissions based on the implementation of new technology.

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