Page 8: of Offshore Engineer Magazine (Sep/Oct 2021)

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LEADING OFF DECARBONIZATION

How to

Decarbonize the

Upstream Industry

AdobeStock/ Goodvibes Photo

By Jessica Brewer, Wood Mackenzie s the energy transition accelerates, upstream areas of the oil and gas industry. companies are under pressure to decarbonize, The direction of travel is set. Early movers with ‘cleaner’ and this is likely to intensify. Governments, in- molecules will potentially be in a more advantaged position vestors, fnancial markets, society, along with and rewarded by the market.

A other stakeholders are pushing for change. Companies need Future-proofng operations isn’t only about gaining a strate- to defne their strategy and act to future-proof their business gic advantage. Governments will play a key role as they pursue and retain their social licence to operate. their own environmental targets and goals, via tighter regula-

There are strategic advantages to producing less carbon-in- tion and carbon pricing, for example. tensive hydrocarbons. The market is shifting as some consum- The potential impact could be material. Wood Macken- ers look for a cleaner end product. We’ve started to see this zie’s analysis suggests that for the top upstream emitters – with ‘Green LNG,’ but this will likely expand to cover other leading NOCs and Majors – a global carbon tax of $110/ 8 OFFSHORE ENGINEER OEDIGITAL.COM