The energy transition is driving the oil and gas industry to explore new directions

Recently, countries have introduced carbon emission reduction plans, and ESG (environmental, social and corporate governance) has also attracted more attention under the common goal of carbon neutrality
.
(Note: ESG is an evaluation system that focuses on the environment, social responsibility and corporate governance, and evaluates the value of
a company from the perspective of sustainable development.
) ）

As the energy transition progresses, oil and gas companies are beginning to embrace ESG strategies as a hub
for future investments.
Whether it is Shell's dismantling into two, changing its name to "Du", or the global industrial giant General Electric (GE) dismantling into three, you can see the "imprint"
of ESG.
Data analytics firm GlobalData believes that the following 12 technologies will be key trends
influencing ESG topics in the oil and gas industry.
For oil and gas industry practitioners, these trends also mean new opportunities for
future development.

1.
Renewable energy

Oil and gas giants are actively restructuring their businesses to include renewable energy capacity in their portfolios
.
These big companies are investing heavily in renewable energy projects, especially solar and wind
.

Total Energy has said it intends to be a leader
in renewable energy.
The company has also set a target of 35 GW of installed renewable power generation capacity by 2025, many of which are already under construction
.
In addition, Total Energy recently announced an ambitious target to increase installed renewable energy generation capacity to 100 GW
by 2030.

BP sets a target of 50 GW of installed renewable power generation capacity by 2030; Both Eni and Repsol have set a target of 15 GW of installed renewable energy generation capacity for 2030; Equinor plans to reach 4 to 6 GW of installed renewable energy generation capacity by 2026 and 12 to 16 GW
by 2035.

2.
Carbon capture and storage (CCS)

CCS technology is to collect the greenhouse gases produced and store them in various ways to avoid their release into the
atmosphere.
CCS is effective, but complex and expensive, and is currently at the heart of
many national net-zero strategies.
In addition, the oil and gas industry utilizes CCS technology more than other industries, and this technology is an attractive long-term opportunity
for oil and gas companies.

Turan, General Manager of Communications at the Global CCS Institute, said, "Whether as a driver of business development and growth, or as a means to reduce the carbon footprint of products, CCS offers many synergies
for the oil and gas industry.
It is a versatile tool in the Energy Transition Toolkit for Oil & Gas Corporations.
"

3.
Electric vehicles

Electric vehicles threaten the demand for hydrocarbons, and their substitution of fuel vehicles will weaken the demand for hydrocarbons in
the transportation industry.

By entering the electric vehicle market, oil and gas companies can leverage their strong brand, global operational infrastructure and retail network to lay the foundation for the mobility of the
future.
Electric vehicle projects will connect oil and gas companies with a new, growing consumer base and involve them in the development of
smart cities and infrastructure.

4.
Liquefied natural gas (LNG)

According to BP's latest edition of the World Energy Outlook report, under the rapid transition and net-zero scenarios, global gas demand will peak in the mid-2030s and mid-20s, respectively, and fall to 2018 levels and one-third below 2018 levels
by 2050.
In the usual scenario, gas demand will continue to grow over the next 30 years, increasing by 1/3
of 2050 from 2018 levels.

GlobalData believes that as governments seek to reduce their carbon footprint, natural gas use will rise
compared to coal and oil.
LNG provides a way to transport natural gas through LNG carriers, allowing natural gas to enter markets where building natural gas pipelines is costly
.

5.
Artificial intelligence

Artificial intelligence, especially predictive analytics, can reduce the environmental hazards of oil and gas activities, and early interruptions allow operators to take precautions before they cause environmental damage
.

AI can also help companies improve safety on site: use AI robots to automate dangerous human tasks and reduce workers' exposure to hazardous environments; The use of artificial intelligence to analyze historical accident records can clarify the cause of accidents and avoid future accidents; Prevent equipment failures with predictive analytics and reduce the frequency and difficulty
of required personnel deployments.

6.
Hydrogen energy

Hydrogen will become a source
of clean energy (zero-emission fuel) on a large scale.
It is rich in reserves, light in weight, can be stored, has good combustion performance, has many forms of utilization, has a high calorific value, and does not directly produce greenhouse gas emissions
.
Hydrogen is
widely used in industries such as oil refining, ammonia production, methanol production and steel production.
The use of hydrogen in transportation, construction, power generation and other fields will increase
.

In the short to medium term, hydrogen technology could replace compressed natural gas (CNG) in some areas with minimal changes
to existing infrastructure.
Since many downstream oil and gas companies already have extensive experience in the hydrogen energy sector, this is a reasonable strategic priority
in the transition process.

According to a report jointly released by the International Hydrogen Energy Commission and energy consultancy Wood Mackenzie, by 2050, hydrogen energy will contribute more than 20% to global carbon reduction, which can cumulatively help reduce carbon emissions
by 80 billion tons.

7.
Industrial Internet

The Industrial Internet improves operations and increases security
.
Installing smart sensors on field equipment, especially heavy machinery such as excavators, bulldozers, trucks, etc.
, can improve the human-robot collaboration capabilities of well sites and prevent accidents
.
In addition, remote monitoring, inspection, material handling, etc.
using autonomous or remote operation technology greatly reduces the need for workers to participate in dangerous operations and minimizes risks
.

A full implementation of the Industrial Internet can help oil and gas companies optimize operational water use and reduce energy consumption, minimizing their impact on
the environment.

8.
Energy Storage (ESS)

ESS technology is a key hub
for energy management and ensuring power quality and reliability.
Renewable energy is not as stable as hydrocarbons, and ESS technology will be in high demand
in ESG strategies as the global energy mix transitions to renewable energy.

9.
Wearable technology

Field workers are prone to health problems and accidents when working in industrial environments involving remote areas, extreme temperatures, pressure changes and heavy equipment
.

Wearables designed for field worker safety monitor health, protect workers from potential hazards, and provide support teams with real-time locations
for workers.
These devices also monitor external environmental conditions and send alerts
to wearers and other team members.

10.
Blockchain technology

The main benefit of blockchain technology for the oil and gas industry is the ability to execute transactions without a central regulatory authority and having a tamper-proof record
of transactions.
It allows transactions to be conducted without third-party control, improving the transparency and compliance
of transactions.
Other key applications of blockchain in the oil and gas industry ESG include: smart contracts, raw material tracking, quality control, trade reconciliation, and data security
.

11.
UAV technology

In 2013, BP received approval from the Federal Aviation Administration (FAA) to allow drones to fly
commercially.
Since then, the application of drones in the oil and gas industry has grown
steadily.

The measurement capabilities of drones have been used for several ESG projects
.
Equinor, ConocoPhillips and Shell use drone technology to inspect flare stacks and other infrastructure for defects and methane emissions; Chevron, Total Energy and ExxonMobil have used drones for disaster management
.

12.
Robots

Robotics can be used to automate repetitive field operational tasks such as reading instrument readings, cleaning and inspecting assets
.
Operators can also deploy robots to perform risky tasks that are not available to field personnel
.
The use of robotics reduces risk
when offshore rigs are being built, subsea pipelines are laid and drilled.
The robot can operate in harsh environments and collect data for non-destructive evaluation
of pipelines, valves, fittings, storage tanks and oil platforms.