The rising awareness against climate change is leading several industries to transition to green energy. However, adaption to clean and green energy is causing significant challenges to the oil and gas sector. According to Dr Fatih Birol, Executive Director at the International Energy Agency, extraction and transportation of oil and gas accounts for almost 15% of the global greenhouse emissions.
The shift towards a low carbon economy has raised a query in many minds- how can the oil industry and gas companies address greenhouse emissions? Well, companies are now incurring an extra cost for the implementation of emission reduction technologies.
Oil and gas giants with higher average production costs are at the most challenging end because of implementing the new emission-reduction technologies. The green energy transition is allotting opportunities for industrialists to incorporate innovative technologies that would give higher growth prospects in the future. Industrialists need to adapt to techniques to decarbonise their operations to save energy and material costs.
As the world is moving fast towards becoming carbon neutral, a McKinsey report suggests that the oil and gas industry is required to reduce the annual emissions by around 3.4 gigatons of carbon dioxide by 2050. Implementing advanced technology, incorporating high-end equipment and diversifying the business can help the oil and gas industrialists to remain safe from the risks led by the energy transition.