SPE Live International Webnar Posted August 23, 2021.
Two international spokespersons on the website answered questions from SPE International (Association of Petroleum Engineers). I have edited and edited most of the comments below.
Moderator was SPE Jasmine ikh. The speakers are Hishim Zubari, Senior Adviser to the National Petroleum and Gas Authority, Mike Guningham, Chief Technology Officer of SGS Suburface Consultancy, Bahrain, and the Netherlands.
Note: Bahrain stays with Saudi Arabia and stays with Qatar and the United Arab Emirates.
Q: What is the meaning of net zero in power transfer?
The concept is important because 75% of all greenhouse gas emissions come from fossil fuels. However, the Net-Zero 2050 deadline may be very soon, as rapid replacement of oil and gas works will cause serious problems.
The transition must be made responsibly — no one should suffer — companies or the economy. The industry wants to be part of the solution, not part of the problem, and even more so – to lead to the solution.
Examples of Middle East efforts in energy transfer are given:
· United Arab Emirates at 1.3 c / kg.
· The United Arab Emirates and Saudi Arabia are driving advanced energy efficiency using sophisticated business models.
· Liquid hydrogen is being exported to Japan from Saudi Arabia and the United Arab Emirates.
· Egypt plans to invest in hydrogen and electric battery storage, and has 1 GW (watt-watt) battery, which is larger than its current operation (300 MW or megawatts) with Saudi Arabia. ).
· Egypt and Saudi Arabia deploy 400 MW and 1.7 GW wind farms.
· Saudi Arabia plans to plant 50 billion new trees in the region.
· Carbon dioxide and geothermal energy are being studied.
Cunningham’s view of the Netherlands, according to a recent IPCC report, shows that climate change is taking place. Half of the Netherlands is below sea level, making people more aware of rising sea levels due to climate change. Half of all new cars being built in the Netherlands are electric cars (EVs). There are wind farms and solar projects across the country.
The oil and gas industry will be part of the solution, and with the new technology they will make a name for themselves in the climate arena. The industry needs to develop a collaborative strategy, which will lead to zero-zero.
Q. Energy aspect – what will happen in 2050?
Rich countries in Europe and North America have a lot of money to lead the way and develop solutions. For example, solutions in Carbon Container and Storage (CCS) include the Northern Lights Nordic project and the BP project Teeside in the UK. Many empty oil fields and gas fields that can store GHG This is an opportunity to use industrial resources.
The view of the Middle East in 2050 is even more disappointing about Net-Zero. After 2050, the world will definitely need oil and gas and then the world will be more resilient to climate change. Oil and gas are always cheap for developing countries, some of them in energy poverty.
Electric cars (EVs) are everywhere, but the world still needs asphalt to improve the way they drive.
In developed countries, there is a need to help poor countries during the transition. For example, a business model is needed to transform the energy infrastructure to get net zero, which will cost $ 140 trillion. Who gives the money and how is it spent? If fossil fuels decide to accept renewals, they must change from a “short-term” profit to a “long-term” profit.
Still, CCC will be a very profitable business.
Oil and gas companies have to relocate first – they can’t wait for this future to be announced by others. Companies have the knowledge, skills, infrastructure and capital to make the transition, so they can lead a broader energy transition. While this may be a tragedy for poor nations, energy companies can make the world a better place to live.
Q: What are the keys to a successful transition?
Fossil energy in the Middle East is so cheap that there is no incentive to start the transition to renewable energy.
According to the International Energy Agency (IEA), fossil fuels need to be reduced by 4% annually to curb GH emissions. But if power is owned and managed by the national government, it will take a lot of time and effort in this region, as private companies cannot go alone.
It is estimated that the investment return period for a company that transfers to renewable goods will be 7-10 years. This is too long for most for-profit companies.
There is a need to find a balance between investment recovery and climate change. We do not have a model for this. We see divided efforts but there is no unified approach. We also face many challenges. For example, air conditioning is important for this part of the world, but it will not be easy to transfer this to renewable ones.
In Europe, there is a concept of cooperation between energy suppliers, GH generators and government policy for all parties to work together. You can add funding and reduce costs for experimental studies that show governments work.
The result will be customized solutions for each country or region of the world. But not just oil and gas companies, but GH producers such as steel companies or cement companies. The partnership could include high-tech companies that want to keep their servers afloat despite climate change.
Q: How do you see the role of SPE during the transition?
The first is to share knowledge, work together and disseminate information about new developments around the world.
Second, SPE can bring the transition stakeholders together.
Third, SPE can connect with people on the road who do not fully understand the special topics of the transition.
Remember, energy is more than just the oil and gas industry. And if SPE is difficult to help with the transition, it should try to include many different renewable energy sources, as well as GH generators.