BAKU, Azerbaijan, Jan.11
By Leman Zeynalova – Trend:
Low-carbon technology will become a key asset for oil and gas companies, Trend reports with reference to Westwood Global Energy Group.
“CCS, clean hydrogen and floating offshore wind are all low-carbon technologies that are on the cusp of mass commercialization and where the oil and gas sector could achieve leadership and massive scale. Companies in the industry have already been positioning themselves in these nascent technology niches,” the company said in a report.
ExxonMobil, to take one example, last month announced a memorandum of understanding with SGN and Green Investment Group to explore the development of a CCS and hydrogen cluster in Southampton, UK. BP, meanwhile, announced the first engineering contracts for the Northern Endurance Partnership carbon capture project in Teesside, Northeast England.
“In 2022 we can expect to see further moves to capture market share and grow capabilities. This process could help determine which technology niches offer the highest returns and are the best fit for oil and gas companies, although the relative weighting of investments in low-carbon technology is likely to be driven mostly by corporate and regional market characteristics,” said Westwood Global Energy Group.
This year, there is increasing pressure on companies to provide intermediate targets, say for 2025 and 2030, and be more specific about what ‘net zero’ really means, according to the report.
“The aim is to sort greenwashers from real transitioners, an objective that also implies greater scrutiny of carbon offsets and other emissions trading tools. Emissions trading came under review at COP26 when negotiators restructured Article 6 of the Paris Agreement on climate change. The revisions aimed to tighten the guidelines for emissions trading. While slammed by some for not going far enough, the changes are expected to support growth in emissions trading. And further refinements could follow this year,” the company analysts said.
Follow the author on Twitter: @Lyaman_Zeyn