Digitalization, Aqueduct Towards Zero Emission
Zero-emission, is it possible? A never-ending wrangle between the lobbies of activists or renewables and oil and gas players. Big shots like Baker Hughes & Equinor are committed towards the net-zero emission by 2050. The big oil players are dealing with the growing emphasis on net zero emissions and renewables from every periphery across the globe.
If we look at the US oil operators checkbox, they definitely have the transformation column after the regime change in the oval office, since the new administration is having some restriction policies for the energy sector in their political expedition which may dwindle up the market more, who knows let’s see? But one point is clear that replacing oil and gas, which has been fuelling the world economy for the past 100 years, is not going to be easy for anyone.
2020 not only proves to be devastating for oil and gas in terms of prices but also the 2 catastrophic oil spills of Norilsk & Mauritius and Baghjan blowout India, intensifying the heat of discussion once again. Digitalization is the way out that oil majors are looking to get rid of this conundrum and helps them to rebrand themselves as a trooper of the environment saver in the current scenario.
Big data analytics, IoT, cloud, robotics & drones, AI and ML technologies can be collaborated with the $3.4 trillion infrastructure of upstream to make it smarter and sustainable. The initial investment is surely like dropping a bombshell on the business in its crippling state, but this will ensure their business continuity, introduce new income ways and stored better returns with a plus of cutting short the carbon emission, as such companies are aiming for net-zero decarbonizing but if they reduce it up to 80% it is more than sufficient hydrocarbon related sectors.
Over the coming time technological innovation not only helps them in neutralising the carbon footprint but also helps in increasing asset utilization and cost reduction. According to the report of the McKinsey & Company that the cost of the decarbonization is not more than $50 per metric ton and by optimizing assets they reduce emission by 4% on every 10% increase on the production efficiency by following the pragmatic plan.
Directly and indirectly Oil and gas is the major contributor in the global emission with a share of nearly 42% as per the McKinsey & Company report. The investment in this transformation will bring the fortune back as well as cut an estimated 20 million tonnes of carbon dioxide, reduce the upstream operations spills by 66,000 barrels and pipeline oil spill by 43,000 barrels according to the World Economic Forum 2017 report.
The upstream sector is lagging behind in implementing the innovative digital solutions in respect to other industries, currently the industry is in its weekend state than ever before and cornered by every possible rival. The stains of lobbying against the climate policies by spending millions are not old and increasing catastrophes put the sector in centre stage and digitalization is the galleon that can help them to sail through this rough patch of the sector. Contact Us