|Publisher||Society of Petroleum Engineers||Language||English|
|Content Type||Conference Paper|
|Title||Energy and Environment: The Ultimate Test of E&P "Intelligence"|
Pieter Kapteijn, SPE, Maersk Oil, Copenhagen, Denmark
SPE Intelligent Energy Conference and Exhibition, 23-25 March 2010, Utrecht, The Netherlands
2010. Society of Petroleum Engineers
|5 Production and Operations
In the next few decades the E&P Industry will face a unique confluence of two major challenges: it must continue to provide the world with sufficient oil and gas to support global development, while at the same time help it reduce the environmental impact of fossil fuel use, with a focus on the reduction of green-house gas CO2 emissions. This calls for innovative technical solutions and new approaches to the design and management of increasingly interdependent energy- and CO2 value chains.
The “intelligent” capabilities that the industry has developed over the past
decade can be leveraged to meet these twin challenges. The combination of
CO2 EOR with Carbon Capture and Sequestration (CCS) in particular,
offers attractive opportunities to combine enhanced oil- and gas recovery with
GHG reduction, in a profitable way. This can be done at the level of individual
field developments but also at the level of integrated energy/CO2
It is concluded that eco-efficient and intelligent technical and commercial design will have to become a core capability of the E&P Industry.
How much can the Industry contribute to GHG reduction?
It is estimated that global CO2 emissions will have to come down to 10-11 Gt/yr by 2050, to limit the increase of average global temperatures to 2 deg C1. This represents a reduction of 70-80% from 2009 emission levels of some 26 Gt/yr.
The concept of “reduction wedges” 2 representing 1 Gt/yr of carbon helps put into perspective what it would require from the E&P industry, to deliver a single wedge of CO2 reduction -equivalent to 3.7 Gt/yr- out of a total of seven.
Geological CO2 storage could go a long way to achieving this target but the required investments in infrastructure within E&P, power generation, steel and other industries would be huge. To illustrate the point: if the Groningen gas field in the Netherlands -the largest in Western Europe- would be fully utilized for CO2 sequestration, it could provide only about 1 to 2 years of storage for a single GHG reduction wedge of 3.7 Gt/yr 3. Worldwide there are only 20 gas fields in the Groningen size class. So this is a daunting task but, as has been shown by Bryant4, it is not beyond the Oil and Gas industry’s capacity or capability.
The required investments in CCS would be additional to the $100-150 bln/yr the E&P industry spends to maintain oil and gas production at current levels of some 83 mln bopd and 295 Bcf/d of gas. Another $300-400 bln/yr would be required to increase global production to meet a projected 1.2–1.4% annual increase in demand up to 2050.
It is still unclear how developments in the global economy, energy and ecology will play out in concert, but some overall long-term trends can be distinguished:
Whether the E&P industry can meet these challenges depends on the global regulatory frameworks, emission trading systems and taxation schemes that may result from the Copenhagen COP15 Conference agreements.
|File Size||144 KB||4|