This paper will focus on the application of lithium-ion energy storage solutions (ESS) for offshore oil and gas (O&G) installations. It will discuss the benefits that can be achieved by integrating energy storage in hybrid power plants, using the West Mira semisubmersible installation in the North Sea as a representative case study. West Mira will be the world's first modern drilling rig to operate a low-emission hybrid (dieselelectric) power plant using lithium-ion batteries. The integration of energy storage with the power supply and distribution system of a drilling rig represents an important step towards improving the environmental sustainability of the offshore oil and gas industry by reducing emissions and paving the way to harnessing clean but intermittent renewables, such as offshore wind. Offshore rigs have highly variable power consumption for drilling and dynamic positioning. By incorporating energy storage, it is possible to reduce the runtime of combustion engines and also keep them operating on an optimized combustion level. The installation of an ESS on West Mira will result in an estimated 42% reduction in the runtime of on-platform diesel engines, reducing CO2 emissions by 15 percent and NOx emissions by 12 percent, which is equivalent to annual emissions from approximately 10,000 automobiles. The batteries on West Mira will be charged from the rig's diesel-electric generators and used for supplying power during peak load times. In addition, they will serve as backup to prevent blackout situations and provide power to the thrusters in the unlikely event of loss of all running machinery.
The realization that fossil fuels are a limited resource, and the growing awareness of the negative impact their emissions have on the planet, has impacted every oil and gas major. The global challenge is expressed in the "energy trilemma" of: Enough Energy, Affordable Energy and Sustainable Energy.
The industry must adapt, in terms of cost and environmental footprint. In this paper we discuss how digitalization and renewable sources can drive innovation to meet these challenges.
We will use current long-range forecasts to understand how the global energy mix is expected to change over time, and illustrate how different scenarios are likely to affect the offshore industry. We also study how digitalization and hybridization with technologies like offshore wind and power-from shore, can reduce costs, energy consumption and emissions.
There are many trends accelerating the introduction of new energy sources These include: Global population growth and changing dynamics: "Millennials" bring with them their own expectations about technology, the pace of work and accountability. Equally influential, is the challenge to feed and power the 2 billion poorest and the extra 2 billion people expected by 2050. Transportation changes: Road, aviation and shipping account for more than 60 percent of the world's oil consumption and key to limiting the impact on the climate. Energy generation revolution: The grid needs to cope with the increased power demands and to incorporate and expand the contribution of renewables Rise in distributed generation: Hybridization pilot projects to use offshore wind turbines to power e.g. water injection systems.
Global population growth and changing dynamics: "Millennials" bring with them their own expectations about technology, the pace of work and accountability. Equally influential, is the challenge to feed and power the 2 billion poorest and the extra 2 billion people expected by 2050.
Transportation changes: Road, aviation and shipping account for more than 60 percent of the world's oil consumption and key to limiting the impact on the climate.
Energy generation revolution: The grid needs to cope with the increased power demands and to incorporate and expand the contribution of renewables
Rise in distributed generation: Hybridization pilot projects to use offshore wind turbines to power e.g. water injection systems.
There are a range of technologies described, which will provide the transformational step change to enable companies to transition into the broader energy ecosystem. However, the real game changer lies in integrating these technologies in a way that drives the evolution from connected operations, to collaborative operations and ultimately autonomous operations to achieve maximum value.
We will describe how, by properly using digital technologies, the sector can not only reduce capital and operating expenditures by up to 30 percent but also use energy optimization and hybridization with renewable energy sources to reduce emissions and help oil and gas operators do their part in addressing "The Energy Trilemma".
We all identify the need to integrate climate change into corporate strategy, with a profitable Carbon Capture Utilisation & Storage (CCUS) business model the elusive goal. Today, CCUS forms 10% of the R&D program of Total, a founding contributor to the OGCI Climate Investments fund. Here in the North East of Scotland, UK and Scottish Governments, along with project developer Pale Blue Dot Energy and Total are providing match funding to the European Commission’s Connecting Europe Facilities fund to progress feasibility work on the Acorn CCS project. As society continues to drive an expectation beyond hydrocarbons, what proposal might the North East of Scotland offer in response?
To meet ambitious emissions reduction targets, the UK must envisage radical changes to the energy economy. Already affecting power generation, these changes must drive further into transport and domestic/industrial energy consumption. Two technologies which may play a part in the decarbonisation of the UK energy business are CCUS and the use of Hydrogen as an energy carrier and energy store, with several studies showing that clean hydrogen is potentially the lowest cost route to meeting UK emission targets in multiple sectors. This builds on the UK’s world class gas network infrastructure, which can be repurposed to avoid becoming stranded, avoiding the enormous expense of increasing the capacity of the electricity transmission network, much of which would lie idle during the summer. The UK gas network carries approximately three times more energy than the electricity network, at one third the unit cost to consumers, and meets winter peaks that are five times greater.
Different to previous CCUS projects, and having the Oil and Gas Authority (OGA)’s first carbon dioxide appraisal and storage licence award, ACORN is an opportunity to evaluate a brownfield CCUS solution to capture, transport and store post-combustion CO2, combined with an upside through emerging pre-combustion CO2 capture technology relating to the production and sale of bulk hydrogen produced from natural gas with a zero-emission target. Located at the St Fergus Gas Terminal – an active industrial site where around 35% of all the natural gas used in the UK comes onshore. ACORN is designed as a "low-cost", "low-risk" CCUS project, to be built quickly, taking advantage of existing oil and gas infrastructure and well understood offshore storage sites. The Acorn Hydrogen project undertakes to evaluate and develop an advanced reformation process which will deliver the most energy and cost-efficient industrial hydrogen production process whilst capturing and sequestering CO2 emissions. An initial phase offers a full-chain demonstration project, an essential step toward commissioning the concept and subsequent commercialisation of large-scale CCUS and Hydrogen deployment in the UK.
SPE Offshore Europe represents an ideal opportunity to update both the region and industry on results, observations, and conclusions with respect to the evolving development architecture, selected process technologies, Government and gas transportation regulatory engagement as this, the leading Scottish CCS project continues its journey toward a final investment decision.
The interest in on Carbon Capture and Storage (CCS) has increased over the last years with recognition of the ability of CCS to achieve a great reductions in CO2 emission as the fossil fuels will continue to be the main supplier for the world energy demand for the upcoming decades with no other alternatives are forecasted to replace them. The comparison between CCS and the other future alternatives or options relies mainly on the CCS cost -which is the main focus of this paper- removal of CCS deployment barrier in addition to the barriers and costs for the alternative options for CO2 emission reduction.
This study gives an insight comparison between the electricity cost for five different options of power generation including Combined Cycle Gas Turbines (CCGT) without and with CCS, coal and finally the nuclear power plants. In addition, it determines the ranges of fuel and carbon prices at which each option can be economically deployed
The recent coal CCS for Nth of a kind power generation plant cost estimates lie in the region of 60 to 100 $/ton of avoided CO2 which is higher than the previous CCS cost estimated and also greater than the accepted range of the forecasted carbon prices in the upcoming years. The higher costs of coal CCS would suggest the following: Coal CCS power generation plants is way less economical than gas ones for the range of carbon prices less than 60-100 $/ton of avoided CO2 Even at carbon prices higher than 100 $/ton of CO2, coal CCS power plants still produces higher cost electricity when compared to the gas CCS ones as long as the natural gas prices are still lower than 9 $/MBTU Coal CCS electricity costs are still higher when compared to a nuclear power plant option
Coal CCS power generation plants is way less economical than gas ones for the range of carbon prices less than 60-100 $/ton of avoided CO2
Even at carbon prices higher than 100 $/ton of CO2, coal CCS power plants still produces higher cost electricity when compared to the gas CCS ones as long as the natural gas prices are still lower than 9 $/MBTU
Coal CCS electricity costs are still higher when compared to a nuclear power plant option
It is widely believed that the CCS power plants (Gas or Coal) are not expected to be economical over the upcoming years, however introduction of subsidized forms of CCS are likely to take place. Also, CCS technology components are expected to be economically implemented in operations like Enhance Oil recovery (EOR), so, in this paper, an economic evaluation is provided for using of CO2 extracted from natural gas plant into EOR operations. CO2 separation cost in the natural gas processing industry is less than the capture cost of CO2 in power plants as a result of its high gas pressure and the fact that CO2 removal is mandatory to increase the value of a natural gas resource
On the other hand, this is not the case for the CCS of the most industrial emissions, as they are expected to be higher than those of power plants as a result of the smaller scale and wider distributed CO2 streams compared to power generation plants. This shows the importance of the realistic CCS cost estimation as a significant factor in the R&D projects and implementation trials that try to overcome the tackles that face the application of such promising technologies.
As a result of the 2016 Paris agreement, the challenge of climate change and the imperative of moving to a low carbon economy has intensified. This challenge has been added to the traditional objectives of affordable and secure energy sources. These three criteria are the basis for the Energy Transition. Increasingly, investors, consumers and policy makers are looking to energy businesses to reflect all these criteria as the basis of their company culture and objectives.
This paper looks to explore opportunities for the UK oil and gas industry to further align itself with the drivers set out above and continue to promote investment into a sector that is key to delivering the Energy Transition:
Improved communication of carbon reduction and mitigation efforts at both a national and global level Increased collaborative efforts aimed at reducing emissions resulting from exploration and production offshore The potential for UKCS oil & gas companies’ involvement in carbon mitigation and storage
Improved communication of carbon reduction and mitigation efforts at both a national and global level
Increased collaborative efforts aimed at reducing emissions resulting from exploration and production offshore
The potential for UKCS oil & gas companies’ involvement in carbon mitigation and storage
Over recent years, the offshore UKCS oil and gas sector has focused on improving cost efficiency in its offshore operations. This implies a commitment to continuously improve environmental performance despite the challenges of doing so in a maturing oil and gas basin, where maximising economic recovery from fields requires greater effort. Notwithstanding these challenges, the overall long-term trends in environmental performance are improving as a result of efforts by the industry.
Moving forwards, the benefits of effective emissions management will continue to intensify, beyond the regulatory requirements of environmental protection, as a result of two key drivers:
To maintain investor and public confidence – reducing both the carbon footprint of operations and carbon intensity of products used by consumers, will help position companies for a lower carbon economy. The business case - EU ETS Phase IV is modelled to cost the sector £2.2 billion from 2021 to 2030 as the cost of allowances is projected to increase combined with the reduction in free allowances. Therefore, reducing emissions at installations will continue to be imperative for improved environment performance as well as the continued economic viability of the installation.
To maintain investor and public confidence – reducing both the carbon footprint of operations and carbon intensity of products used by consumers, will help position companies for a lower carbon economy.
The business case - EU ETS Phase IV is modelled to cost the sector £2.2 billion from 2021 to 2030 as the cost of allowances is projected to increase combined with the reduction in free allowances. Therefore, reducing emissions at installations will continue to be imperative for improved environment performance as well as the continued economic viability of the installation.
The sector must therefore continue to adapt to these ongoing fundamental changes that are taking place in energy supply more widely. As with any industry, businesses need to respond to shifting economic and societal demands and the consequent changes in energy needs. Hence, the effective management of emissions must proliferate through both operations (exploration, production and transportation of hydrocarbons), and use of the products delivered.
Ritz, Sebastian (Technical University of Berlin) | Golz, Matthias (Technical University of Berlin) | Boeck, Florin (Technical University of Berlin) | Holbach, Gerd (Technical University of Berlin) | Rentzow, Erik (University of Rostock) | Kurowski, Martin (University of Rostock) | Jeinsch, Torsten (University of Rostock) | Wehner, Willem Hendrik (thyssenkrupp Marine Systems) | Richter, Nicolas (thyssenkrupp Marine Systems) | Voß, Thomas (thyssenkrupp Marine Systems)
The joint research project "MUM - Large Modifiable Underwater Mothership" targets the development of a highly modular, unmanned underwater vehicle, which allows a mission dependent module assembly to fulfill a wide spectrum of underwater tasks. The paper presents a case study for the deployment and recovery of ocean bottom nodes (OBN) for seismic surveys. Therefore, a specific vehicle configuration and its functionality is introduced. The advantages of MUM are presented in terms of its cost efficiency and non-monetary benefits, as crew safety, carbon footprint and others. In addition, business aspects for potential customers are discussed.
The major challenge facing society in the 21st century is to improve the quality of life for all citizens in an egalitarian way, by providing sufficient food, shelter, energy and other resources for a healthy meaningful life, whilst at the same time decarbonizing anthropogenic activity to provide a safe global climate. This means limiting the temperature rise to below 2 C. Currently, spreading wealth and health across the globe is dependent on growing the GDP of all countries. This is driven by the use of energy, which until recently has mostly derived from fossil fuel, though a number of countries have shown a decoupling of GDP growth and greenhouse gas emissions from the energy sector through rapid increases in low carbon energy generation. Nevertheless, as low carbon energy technologies are implemented over the coming decades, fossil fuels will continue to have a vital role in providing energy to drive the global economy. Considering the current level of energy consumption and projected implementation rates of low carbon energy production, a considerable quantity of fossil fuels will still be used, and to avoid emissions of GHG, carbon capture and storage (CCS) on an industrial scale will be required. In addition, the IPCC estimate that large scale GHG removal from the atmosphere is required using technologies such as Bioenergy CCS to achieve climate safety. In this paper we estimate the amount of carbon dioxide that will have to be captured and stored, the storage volume and infrastructure required if we are to achieve both the energy consumption and GHG emission goals. By reference to the UK we conclude that the oil and gas production industry alone has the geological and engineering expertise and global reach to find the geological storage structures and build the facilities, pipelines and wells required. Here we consider why and how oil and gas companies will need to morph into hydrocarbon production and carbon dioxide storage enterprises, and thus be economically sustainable businesses in the long term, by diversifying in and developing this new industry.
Alkadi, Nasr (Energy Innovation Center, BHGE) | Chow, Jon (Measurement and Sensing, BHGE) | Howe, Katy (Energy Innovation Center, BHGE) | Potyrailo, Radislav (GE Research) | Abdilghanie, Ammar (Energy Innovation Center, BHGE) | Jayaraman, Balaji (Oklahoma State University) | Allamraju, Rakshit (Oklahoma State University) | Westerheide, John (Energy Innovation Center, BHGE) | Corcoran, John 6 (Measurement and Sensing, BHGE) | Di Filippo, Valeria (Energy Innovation Center, BHGE) | Kazempoor, Pejman (Energy Innovation Center, BHGE) | Zoghbi, Bilal (Energy Innovation Center, BHGE) | El-Messidi, Ashraf (Measurement and Sensing, BHGE) | Zhang, Jianmin (Energy Innovation Center, BHGE) | Parkes, Glen (Measurement and Sensing, BHGE)
This paper presents our progress in developing, testing, and implementing a Ubiquitous Sensing Network (USN) for real-time monitoring of methane emissions. This newsensor technology supports environmental management of industrial sites through a decision support system. Upon detection of specific inputs, data is processed before passing it on for appropriate actions
The oil and gas major has set aside $100 million to fund projects that will deliver new greenhouse gas emissions reductions in its upstream oil and gas operations. The emissions intensity of upstream Canadian oil sands production will continue to decline in coming years, falling to 30% below 2009 levels by 2030, a new report by business information provider IHS Markit says. On 26 April 2018, Canada's minister of environment and climate change announced new regulations under the Canadian Environmental Protection Act, 1999, to reduce methane emissions in the oil and gas sector by almost half.
Emissions of methane from the industrial sector have been vastly underestimated, researchers from Cornell University and the Environmental Defense Fund have found. Proposed changes would modify EPA's August 2016 final rule, "Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources." The proposal has been submitted for publication to the Federal Register. Following that publication, the EPA will accept comments for 60 days.