The Future of Oil & Gas in a Lower Carbon World - PEPANZ

Petroleum Exploration & Production Association of New Zealand has issued a report.  I would highly recommend anyone active in the international Oil & Gas industry to download and read this report, for consideration:

The Future of Oil & Gas in a Lower Carbon World

EXECUTIVE SUMMARY

Oil and gas have a crucial role to play in both the transition to a lower-carbon society, and as a long-term part of that world. 

• In the future oil and gas will have much less of an impact on the environment as emissions are reduced, captured and offset.

• Forecasts show oil and gas will still make up around half of the world’s energy needs by 2040, but will be used in different ways.

• The world’s population will reach nine billion people by 2040 and will be wealthier and increasingly urbanised. We will need more energy from all sources to support this major increase in living standards. 

• Electric vehicles and lower-emitting fuels will increasingly replace oil for transportation in motor vehicles, while natural gas will increasingly replace coal for industrial use and power generation.

• The net emissions generated by oil and gas can be reduced through:

» Substituting coal with natural gas (which has less than half the greenhouse gas emissions)

» Pricing carbon through the Emissions Trading Scheme (ETS)

» Using carbon capture and storage technology which may allow near zero emissions from the use of oil and gas

» Offsetting emissions through planting trees

• Oil and gas have a wide range of non-combustible uses that will continue to be important, such as medical and cosmetic products, plastics, building materials and clothing.

• It is not just possible, but essential for oil and gas to co-exist in a net zero emissions world. They bring enormous benefits to people’s lives by providing affordable, reliable and sustainable energy.

• PEPANZ has a ‘Net Zero Emissions Committee’ to ensure the New Zealand petroleum sector is proactively involved in these efforts to reduce net emissions. Our industry is determined to be part of the solution, and this publication is a summary of our vision.

 

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Press Release:

Major role outlined for oil and gas in a lower carbon world

Oil and gas have a crucial long-term role and will have much less of an impact on the environment in future, according to a new report released today by the Petroleum Exploration and Production Association of New Zealand (PEPANZ).

"The report sets out how it is both possible and essential for oil and gas to co-exist in a net zero emissions world," says PEPANZ Net Zero Committee Chair Dr Kate Bromfield.

"The world’s population will reach 9 billion by 2040 and people will need more energy than ever. Renewable sources alone have no chance of meeting this demand, which means oil and gas are still expected to provide around half of the world’s energy by then.

"At the same time, the world must lower net emissions to reduce the impacts of a changing climate. Achieving this will be challenging but absolutely essential, and our industry is a key part of the solution."

The report outlines some of the key ways this can be achieved:

- Substituting coal with natural gas (which has half the greenhouse gas emissions)

- Pricing carbon through the Emissions Trading Scheme (ETS)

- Using carbon capture and storage technology (CCS)

- Offsetting emissions through planting trees

- Reducing the emissions that occur in the production of oil and gas (such as flaring and venting gas)

The report also urges the Government to introduce a comprehensive regulatory framework for CCS technology so that it can be deployed into New Zealand in future.

"Overall this is a good news story. It’s a ‘win-win scenario’ where we can enjoy the benefits of fast, affordable, and effective energy to power our lives, while tackling climate change at the same time."

The full report is available at

https://www.pepanz.com/dmsdocument/92

 

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This PEPANZ report is an excellent attempt to balance the demands and dictates of environmental extremists and excessive government regulations with the realities of providing hydrocarbon energy to the world over the upcoming decades.

There are items in this report that I do not agree with.  However, this is one of the best attempts I've seen by the oil & gas industry to compromise with hysterical environmental extremists who want to keep oil & gas in the ground forever.

The reality is, the civilized world runs on oil & gas, and that is not about to change any time soon, despite hyperventilating and frothing at the mouth by those who simply want the oil & gas industry to curl up and die a painful death.

I remain proudly pro Oil & Gas.  And I refuse to apologize for being pro Oil & Gas.  And I'm fine if that triggers a few people...

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