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Over the last hundred years, global energy demand has risen 10-fold. This massive growth has been fueled almost exclusively by coal, oil, and natural gas and fossil fuels comprise 80% of today's energy supply (Figure 1). To date, low- or zero-carbon energy from nuclear, solar, and wind remains a small but growing fraction of the global energy mix. Global carbon capture, utilization, and storage (CCUS) projects are being developed, but existing capacity is three orders of magnitude lower than current emissions levels. The number of projects will need to rise substantially to help offset emissions from fossil fuels used to sustain economies around the world.
SPE and International Association of Drilling Contractors (IADC) University of North Dakota student chapters built a strategic partnership to host two collaborative events in the past 3 months. Energy transition and net-zero became the main subject of the sessions. In January, the team organized an integrated virtual workshop on Carbon Capture Utilization and Storage (CCUS). The event hosted 12 workshop presentations from 11 distinguished speakers covering theoretical and practical aspects of CCUS as part of the efforts to net-zero CO2 emissions. The virtual workshop discussed current CCUS initiatives and challenges, including subsurface geologic storage; CO₂-EOR/EGR; reservoir monitoring and risk assessment; case studies; policy and infrastructure; and non-technical considerations.
The NFCI quality-control metric is used to benchmark in real-time every stimulated stage and well against the best producing wells of a similar geological and reservoir profile. The NFCI targets, trained with a database of more than 15,000 stage measurements and a production repository, are tuned for the localized acreage and continually recalibrated as new production data becomes available. Sensor and monitoring company Seismos is partnering with Liberty Energy on real-time quality control of reservoir stimulation. Liberty will be bundling Seismos' measurements-while-fracturing (MWF) analytics system with its completions services. "Every stage counts," said Panos Adamopoulos, the CEO of Seismos.
The US Interior Department (DOI) has pulled the plug on three planned offshore oil and gas lease sales in Alaska and the Gulf of Mexico (GOM), effectively ending the program for 2022. DOI released a statement saying it would not move forward with the planned Cook Inlet, Alaska, Sale 258 due to "lack of industry interest in leasing the area." Additionally, GOM Sales 259 and 261 will be scrapped due to "conflicting court rulings." The decision to axe the lease sales comes at a time when high oil prices and concerns stemming from the Russian war in Ukraine have tightened global supply. The implications of the cancelations may go beyond just this year.
As oil and gas companies continue making net-zero declarations, Santos, an Australian-based oil and gas company, may have set in motion a new industry practice by including and declaring its CO2 storage resources (100 million tons capacity) along with its reserves statement. This pivotal revelation, made recently, raises the following question: Will CO2 storage resources for carbon capture and storage (CCS) increase the valuation of oil and gas companies and counterbalance environmental, social, and governance (ESG) pressure? After all, an oil and gas company's reserves are a key factor in its valuation, but through the lens of the energy transition, such reserves can be viewed as problematic. On the other hand, CCS is endorsed by the UN, the unifying body for the 2015 Paris Agreement. Thus, CCS is a component, much like renewables, of the energy transition, despite renewables being incapable of capturing CO2.