Wireline Issue 44 - Spring 2019

of climate change policies; globally, CCUS is expected to deliver about 14% of total emission reductions. Traditional fossil fuels may also, in future, be decarbonised using carbon capture and storage technologies. “Using existing expertise and technologies, we can develop and incorporate newer technologies like hydrogen and carbon capture to help take us to the next phase after 2035. From a Member perspective, we need a continuous process of adjustment: ensuring we have enough energy, alongside investing in new technology,” he adds. Demand for gas is also likely to grow to enable a hydrogen economy. Potentially an effective fuel for low-carbon heating and transport, hydrogen could play a key role in the global energy transition. At present, steam methane reformation — the reaction of natural gas with water to produce hydrogen and carbon dioxide — is the most common way to produce the gas hydrogen and carbon capture to help take us to the next phase after 2035.” “Using existing expertise, we can develop newer technologies like

Changes within the industry Many oil and gas companies are diversifying their outlook to become ‘energy’ suppliers. This has seen industry take steps towards exploring and investing into alternative energy, funding research and development while also reducing their respective carbon footprints. In many cases this is in response to the wishes of investors and consumers, but it is also a strategic opportunity. For example, Ørsted (previously DONG Energy) divested its oil and gas assets and rebranded to become a purely renewable energy company; Equinor, previously Statoil, changed its name to reflect a shift towards being a broader energy supplier beyond hydrocarbons alone. An increasing number of supply chain companies are working in renewables. For example, Wood Group — a company which designs, modifies, constructs and operates industrial facilities primarily for the oil and gas sector—has supportedonshore andoffshore renewables projects around the world for the last 14 years. Alternative fuels and carbon-capture technology A successful transition to a low-carbon future will therefore require sustained investment in oil and gas. “By 2035, there will be an increased presence of renewables and potentially after that there could be an acceleration. But if we do not meet the energy needs with oil and gas in the meantime, it could derail the whole process of advancing in renewable and other low carbon energy,” explains Oil & Gas UK energy policy manager Will Webster. It has been suggested that facilities in the North Sea could be used to enable further decarbonisation by being converted to carbon capture and storage facilities. This technology will play a part in fulfilling the objectives

Global Gas Demand by Sector, IEA Sustainable Development Scenario (bcm)

47

4,184

277

349

9

3,752

-250

2016

2040

Power Industry Building Transport Other Total Demand

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