Technology pathway 1: Methane abatement and zero-gas flaring Methane abatement in the oil and gas industry is a cost-effective strategy for reducing GHG emissions, due to methane’s potency and the potential to monetize captured gas. It is estimated that 40% of global methane emissions from oil and gas operations could be eliminated at no net cost. Addressing large leaks is a priority, with initiatives like the Methane Alert and Response System (MARS) using satellite technology to detect significant leaks and notify operators. The Oil and Gas Climate Initiative is piloting satellite monitoring in Iraq, Kazakhstan, Algeria and Egypt, with plans for expansion.538 Companies are employing various technologies to reduce or eliminate flaring. For instance, ExxonMobil announced in January 2023 that it had ceased routine gas flaring in the Permian Basin, aligning with its goal of net-zero emissions in the region by 2030. Portable compressed natural gas (CNG) and mini-LNG facilities can compress gas on-site for transport, potentially eliminating up to 89% of flaring, according to the US EPA in the Bakken field. Additionally, small-scale gas- to-methanol or gas-to-liquids plants are being developed with modular equipment. Upgrading flare tips and stacks can further enhance combustion efficiency and reduce emissions.539 Oil & Gas Decarbonization Charter (OGDC) signatories aim to achieve near-zero methane emissions in upstream operations and eliminate routine flaring in all operations by 2030. The initiative also plans to influence partners to adopt similar practices, where applicable.540 Technology pathway 2: Electrification Electrification in upstream oil and gas operations is at a mature stage (TRL10), while in downstream operations (i.e. refining operations), it remains in the prototype stage (TRL 5). Various technologies enable electrification in upstream processes, enhancing efficiency and reducing emissions. Centralized grid connections enable access to existing electricity infrastructure, which is a preferred option in North America and Eurasia. Alternatively, decentralized renewable energy systems (such as wind and solar power with battery storage) facilitate on-site generation, particularly in regions like the Middle East and North Africa. Operators can choose between direct and alternating current (DC/ AC) technologies and implement hybrid systems for reliability. For instance, companies operating in the North Sea have collaborated to develop shared clean electricity infrastructure.541 Upgrading to more efficient equipment, like combined-cycle turbines, can further enhance efficiency. Technology pathway 3: CCUS The oil and gas industry has invested in over 90% of operational CCUS capacity and contributed more than 40% of total CCUS investment since 2010 in projects linked to oil and gas value chains. Currently, approximately 45 Mt of CO2 is captured annually across 11 countries, with around 75% of this being used for enhanced oil recovery (EOR). However, EOR typically lacks the stringent monitoring needed to ensure permanent CO2 storage. Around 30 Mt is captured from natural gas processing in the US, Brazil, Australia, the Middle East and China, while refineries and upgrading facilities in Canada and the US capture around 3 Mt per year.542 CCS with permanent storage effectively captures CO2 from refining processes, allowing for safe reuse and storage.543 Technology pathway 4: Clean hydrogen Globally, around 42 million tons of hydrogen is used for refining oil, comprising almost half of the world’s hydrogen demand and resulting in about 380 million tons of CO2 emissions each year.544 The processes of hydrotreating and hydrocracking consume over 90% of this hydrogen.545 Refineries are well-equipped to adopt low-emission hydrogen technologies without needing new equipment. They can act as key sources of demand, helping to grow the supply of low-emission hydrogen and reducing risks for nearby operations that depend on coordinated investments. Net-Zero Industry Tracker: 2024 Edition 125

Net Zero Industry Tracker 2024