Net Zero Industry Tracker 2024 Oil and Gas

Infrastructure Decarbonization of the oil and gas sector relies on three key factors: clean power, CCUS and clean hydrogen. Sufficient clean power generation capacity is needed for facility electrification, with a target of 178 GW by 2030.546 As of 2022, oil and gas companies accounted for only about 1% of the total installed renewable energy capacity,547 which translates to approximately 34 GW of clean energy used.548 Additionally, effective infrastructure for CCUS is essential at processing plants and refineries, requiring a total of 390 MTPA of CO2 storage capacity by 2030,549 down from 400 MTPA last year. Currently, approximately 33 MTPA550 is already established for natural gas processing and LNG operations, an increase from 28 MTPA the previous year. The oil and gas industry possesses the necessary skills and expertise for CCUS, as it involves developing geological CO2 storage resources, managing above-ground CO2 handling facilities, monitoring gases underground and executing complex engineering projects. The CCUS Hub by the Oil and Gas Climate Initiative (OGCI) aims to help political decision- makers, industrial emitters, carbon transport and storage operators, and potential hub developers to set up their own CCUS hubs, learning from the experience of those already in advanced development.551 It is important to note that the planning and permitting process for storing CO2 is approximately 10 years, and could be a bottleneck in scaling up the use of CCUS. In addition to CCUS, expanding clean hydrogen production is important for decarbonization efforts. The goal is to achieve a hydrogen production capacity of 10 MTPA by 2030,552 which will support refining processes and contribute to overall emissions reduction.553 Currently, clean hydrogen production has yet to gain momentum due to high costs, with a capacity of 0 MTPA.554 Current capacity used Capacity required (2050) Clean hydrogen production CO 2 transport and storage 34 GW 178 GW 0 MTPA 10 MTPA 33 MTPA 390 MTPAClean power generationInfrastructure for decarbonization capacity FIGURE 68OIL AND GAS Source: Accenture calculations based on IEA. Net-Zero Industry Tracker: 2024 Edition 9