Excerpts of the CERA Week 2023 presentation by Nagaraj Srinivasan (Envana Board Co-Lead/Senior Vice President of the Landmark and Halliburton Digital Solutions Division) and Roxana Nielsen (VP of Products)
Today’s energy transition challenges are hitting oil and gas companies harder than anyone else.
Oil represents not just a commodity but a complex chain that intertwines with global economies and environmental concerns. A barrel of oil’s value chain, from reservoir to end use, is responsible for 20 to 100 kgs. of emissions, even up to 500 kgs. About six trees would be required to offset those emissions, and with an industry scale of 90–100 million barrels per day, the magnitude of this problem is more than considerable.
In light of the increased focus on reducing greenhouse gas (GHG) emissions across industries, let’s explore the pivotal role of oil and gas data management software in addressing the energy transition challenges that companies face today.
The move towards net zero compliant methodologies for emissions management has become crucial for operators, stakeholders, and other service companies responsible for GHG emissions. Outdated models must be replaced; a paradigm shift is necessary for many industries — especially oil and gas — to adapt successfully to the changes. This requires a fresh approach, leading companies to navigate energy transition challenges with cloud-based oil and gas data management software. These solutions empower their users with the ideal tools for digital emissions management.
Emissions management involves much more than simply reporting emissions. Now, a company’s carbon footprint is a key part of business operations — just as important as P&L and other operational metrics. Most companies are beginning to make this transition, viewing it as a strategic imperative.
Funding for emissions management has traditionally been categorized under climate or HSE, but it is now becoming more mainstream. Operations departments are taking ownership, and responsibility for emissions has shifted from the Chief HSE officer to an operational metric that is embedded within a company’s management structure.
By adopting digital emissions management, companies are poised for sustainability and innovation. Cutting-edge software solutions enable organizations to streamline data collection, analysis, and reporting processes, empowering informed decision-making and driving tangible progress toward emission reduction goals.
To move away from annual sustainability reports, your company needs a modern, enterprise-class system that can interact with operations team members and equipment, rather than relying on manual logs and Excel spreadsheets. This is where having the right oil and gas data management software comes in — particularly solutions such as Envana, an AI-driven platform built by professionals who understand the unique value chain of the oil and gas industry.
The first step towards reducing emissions and achieving net zero is identifying and quantifying your emissions. While the math may seem simple, it is quite complex, involving various emissions factors, methodologies, and assumptions. On top of that, the complicated measurement process requires data science and analytics.
Additionally, no organization has a uniform level of maturity when it comes to emissions. Some areas may have more detailed information than others. This is where oil and gas data management software can accommodate different levels of confidence and maturity, providing tools to help companies identify and understand their carbon footprint.
With this understanding, your company can start focusing on emission reduction initiatives in a data-driven manner, targeting areas where you can have the greatest impact in the midst of increasingly taxing energy transition challenges.
Reduction efforts can also involve decreasing your operation’s carbon footprint by:
Any remaining emissions can be offset through markets, and the right software solution can assist with predicting how much spending you’ll have to do in this area.
Through digital emissions management, Envana provides tools for detection, modeling, measurement, tracking, and managing progress toward your emission reduction goals. Our software integrates seamlessly with existing systems, collecting necessary emissions data and using it to create an emissions profile for your company’s activities. These profiles have a governance model, and CSR teams can approve and review them to ensure they meet your company’s standards.
Envana has a library of emissions sources and profiles for common oil and gas activities, making it easy for your company to start modeling emissions. A one-stop shop for data collection, our platform combines data from various detection technologies into an accessible, unified system. It works with production and operations data to provide more accurate quantification of methane emissions, helping oil and gas companies achieve OGMP levels 4 and 5.
Our platform also allows for forecasting by integrating with planning tools, making it possible to predict future emissions and use this information for government reporting, carbon tax planning, and decision-making.
With the right oil and gas data management software, the energy transition challenges facing today’s oil and gas industry are nothing to be feared. They are, in effect, promising opportunities for achieving sustainable emission reduction targets while streamlining or reinforcing existing processes.
For a deep dive into the rapidly evolving emission regulations affecting the oil and gas industry — including the Methane Waste Charge and Super Emitter Program — download The Easy Guide to Navigating O&G Methane Regulations in 2024.
Reach out to our team to trial the software or find out how you can streamline your oil and gas emissions management.