Over the last couple of years, we have seen a significant increase in efforts to comply with carbon emissions reporting by oil and gas companies. This primarily has been led by some of the highest-profile companies publicly reporting their greenhouse gas (GHG) figures and committing to ambitious carbon reduction targets. In addition, the UK, EU, and other governments worldwide have increased their requirements regarding the number of sectors and businesses required to disclose carbon and energy information.
According to a Reuters report, while over half of respondents indicated they are using manual options and/or Excel spreadsheets to store sustainability data today, this share falls dramatically in the coming years, with a concerted move toward third-party platforms and customized internal solutions being recorded, especially among those reporting Scope 3 emissions. There is a concerted shift towards reporting Scope 1 – 3 emissions with external accounting firm assurance by 2027, driven primarily by regulatory requirements. Those reporting Scope 1 – 2 emissions, or not reporting any GHG emissions at all, can expect to be in the minority by 2027.
Accurate reporting is crucial to understanding the environmental impacts of oil and gas activities as it allows companies to identify areas for improvement and implement corrective action plans to abate carbon emissions. As well as being used for legal compliance, accurate GHG emissions data helps companies identify and address emissions "hot spots", implement energy efficiency improvements and optimize resource allocation. By providing accurate, transparent, and auditable data, stakeholders can make informed decisions about investments and partnerships. Accurate emissions tracking and monitoring allows companies to track waste management and water usage, enabling them to make informed decisions on resource conservation and assess the impact of operations on surrounding ecosystems.
Overall, “you cannot manage what you cannot measure”. Accurate greenhouse gas emissions measurement, tracking, and reporting across oil and gas operations is vital to any company’s decarbonization strategy. It's also key to meet commitments around sustainability and environmental responsibility.
Transparency and auditability of emissions reporting are crucial elements of a good data management system as they promote accountability and help build trust amongst stakeholders. Accurate and reliable data helps demonstrate commitments to environmental sustainability and also helps to identify areas of improvement to drive innovation within companies.
The large and complex datasets flowing through from multiple sources of spreadsheet-based reporting in the oil and gas sector pose serious risks to data integrity as they can be prone to human error, making reporting less accurate. The manual nature of spreadsheets makes them time-consuming and difficult to manage, especially when managing multiple spreadsheets from different sources. Spreadsheets are vulnerable to manipulations, whether intentional or not. This is a critical issue in the oil and gas industry, where data accuracy is essential for environmental reporting and compliance. Therefore, companies need to adopt a more robust and centralised database-driven solution that supports the management of large datasets and ensures the security and integrity of their data.
An emissions management software (EMS) supports the measurement, management, reporting, and reduction of GHG emissions. It provides a solution to the issues of manual spreadsheets as it offers a centralised database that ensures the accuracy, transparency, efficiency, and auditability of data. By consolidating all data into a single source of truth, companies can eliminate errors and inconsistencies that often arise when using spreadsheets. This centralisation allows multiple stakeholders to access the same data ensuring everyone is on the same page. Furthermore, by using a database-driven solution, companies can more accurately calculate, track, and report on their Scope 1, 2, and 3 GHG emissions at a more granular level. With the ability to handle large datasets, oil and gas companies can more comprehensively and efficiently perform analyses that were previously not possible, allowing for a more thorough understanding of environmental impacts.
A good EMS platform allows companies to set decarbonization targets, track progress and prioritize mitigation efforts. The solution should enable real-time monitoring of data allowing companies to leverage data analytics to drive efficiency, monitor project performance, and respond quickly to issues. This data-driven approach adds transparency and credibility to carbon reporting, instilling stakeholders' confidence. A database-driven EMS platform presents several benefits over spreadsheets, one of which is the automation of the reporting processes, increasing efficiency and reducing human error. Secondly, it allows for an integration of the various reporting standards such as OGMP 2.0, TCFD, making it easier to meet regulatory and reporting requirements.
Overall, an emissions management platform that consolidates and unifies data into a single source of truth is crucial for oil and gas companies to improve their environmental impacts and meet reporting requirements. By adopting this solution, companies can streamline their reporting processes, improve data accuracy and completeness.
The future of environmental reporting in the oil and gas industry looks positive. As the industry continues to evolve, exploring new energy sources and adopting new technologies, environmental reporting is also expected to change with time. Companies are already expected to publicly disclose their environmental performance, impacts, and targets. One such trend is the use of real-time monitoring to improve environmental reporting. This involves IoT devices and sensors to monitor and detect the presence of methane, volatile organic compounds, carbon, and more. Sensor technology enables companies to collect accurate and verifiable data in various situations easily, and quickly make decisions and take corrective measures.
To ensure that performance and targets are comparative and consistent amongst peers, the industry is moving towards more standardized reporting frameworks. For example, the recently released SEC ruling now includes changes to the climate disclosure rule that requires a standardization of climate-related disclosures. The SEC now requires companies to disclose certain climate-related information, including material climate-related risks and opportunities, material Scopes 1 & 2 GHG emissions, and certain climate-related financial metrics.
Our aim at Envana is to simplify the complex world of emissions reporting in the oil and gas industry and make it easy and accessible to all companies looking to embark on their sustainability journey. Envana Catalyst is a software solution that can simplify and streamline carbon accounting processes across different business operations, suppliers, and portfolios. Our cloud-based application integrates standards from the Greenhouse Gas Protocol to the International Petroleum Industry Environmental Conservation Association (IPIECA) and more, simplifying the collection of business activity data, accurately calculating emissions, monitoring, and managing performance. With an accessible cloud-based platform that integrates seamlessly into your existing tech stack, Envana ensures a reliable and efficient carbon reporting process that allows environmental data to be managed as rigorously as financial data is. Due to Envana’s experience and expertise, we understand the oil and gas industry. We can advise on strategic or legislative reporting requirements, providing economically sensible solutions for your business.
By centralizing your data on an auditable platform such as Envana, you're paving the way to optimize your gas product's commercial opportunities in international markets. Through Envana's partnership with EarnDLT, we help enable carbon data transparency on Quantified Emissions Tokens® (QET). QETs are blockchain-enabled Energy Attribute Certificates that store measured and verified emissions data – such as methane intensity and carbon intensity – from each segment of the entire value chain in a manner that fully complies with all leading global standards such as OGMP 2.0. Energy Attribute Certificates are tradable digital certificates that contain factual information about how a specific standard unit (e.g, MMBtu, MWh, Gallon, etc., of energy) was generated.
Envana is excited to extend ESG reporting transparency with EarnDLT, an integrated solution that enables oil and gas producers to confidently communicate and transact the ESG data they are measuring and managing to the downstream market. The EarnDLT solution facilitates data recording and independent verification. Connecting buyers and sellers, EarnDLT establishes the buyers' required trust factor to generate carbon reduction.
By providing critical greenhouse gas inventory value chain information, Envana facilitates emissions data governance. The Catalyst platform also enables optimal environmental attribute reporting, as well as, gas market pricing differentials. Described commonly as the "nutrition label for a gas molecule", EarnDLT QETs allow for every MMBtu of gas connected to the Envana data set to become a token.
Some of the high-level requirements on the QET include:
Production Information (e.g., pad time)
Environmental reporting in the Oil and Gas industry is moving towards a more data-driven and transparent future. Therefore, to meet these expectations, companies need to carefully assess their reporting needs and select the right management solution that will yield the best results. Companies must consider factors such as scalability, ease of use, and integration with current systems. The right emissions management platform will streamline reporting processes and ensure the success of environmental reporting efforts.
To speak to our team about your environmental requirements, please get in touch with Envana. Envana's team can help orient you on the most efficient solution for your company's current needs. Meet your sustainability goals, optimize your profitability, reduce your risks, and streamline your reporting with Envana's oil and gas bespoke oil and gas platform built for your use case. Learn how other industry leaders are acting on their data today to gain operational efficiencies and market advantages.
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