Global energy consultancy Xodus has completed a major benchmarking emissions review for a leading Middle East oil operator’s full asset portfolio, demonstrating significant emissions and cost savings.
The team identified more than 100 emissions reduction opportunities as a result of the site studies, representing a minimum 20% reduction in total CO2 equivalent. A third of the improvements can be easily implemented with low or no capital expenditure required. The complete reduction potential would deliver overall savings of $10 - $15 million per year.
The six-month project reviewed scope 1, 2 and 3 emissions, establishing the foundations for a sustainable reduction action plan. Scope 1 covers direct emissions at the production stage, scope 2 covers indirect emissions from generation and scope 3 covers all other indirect emissions.
The Xodus team also reviewed national and international guidance, legislation and policy with existing internal processes, identifying best practices, peer benchmarking and recommendations for the development of an internal emissions and energy efficiency framework.
Natasha Howlett, emissions lead at Xodus said: “The comprehensive review of greenhouse gas emissions gives our client a clear understanding of their emissions baseline along with a robust hopper of improvement opportunities and how best to prioritise these for implementation in order to decarbonise a portfolio of assets.
“This exercise has demonstrated this client’s ambitions as a decarbonisation leader for the region. Oil and gas operators are looking to responsibly reduce emissions and ultimately achieve net zero. Benchmarking and opportunity identification are vital first steps in order to ensure that this complex journey to net zero is manageable and will deliver big impacts when it comes to cutting both emissions and costs.”
Xodus has built up a wealth of experience and learnings from developing emissions reductions strategies in the UK and other global regions, which can help Middle East operators as they strive to meet new country-level targets being set.
Saudi Arabia has pledged to bring its carbon emissions down to net zero by 2060 and the UAE by 2050. Bahrain and Israel have also made net zero pledges while Qatar has set out a plan to cut emissions by 25% by 2030. Given the scale of oil and gas production from the Middle East, sustained incremental emissions reductions from production assets can make a significant impact on global climate targets.