Skip to Main Content
Access your saved content
The Sustainable Energy for All initiative was launched by the United Nations Secretary-General Ban Ki-moon to mobilize action and partnerships focused on sustainably meeting the increasing energy requirements of businesses and society. The initiative has set three primary objectives, to be met by 2030: ensuring universal access to modern energy services; doubling the global rate of improvement in energy efficiency; and doubling the share of renewable energy in the global energy mix.
This report looks at the oil and gas industry and identifies five priority actions it can take to reduce its energy use while simultaneously driving high performance.
Demand for energy is growing, and this growth is expected to continue due to population growth and higher global standards of living. Although recent economic turmoil has reduced energy consumption, 2010 saw a strong rebound with consumption growing 5.6 percent, the highest rate since 1973 across all forms of energy and across all.
Within the energy value chain, the oil and gas industry has the potential to affect the sustainable energy landscape substantially. Three particular areas of importance are:
Cooperation with policy makers and regulators to develop national energy plans.
Increasing operational energy efficiency.
Investing in new renewable fuels and the generation of renewable energy.
The oil and gas industry has the ability to evaluate investments and development activities over a very long time, and can use this expertise to help develop new—or optimize existing—energy plans. The oil and gas industry can be an important partner when it comes to investment and financing, capability and capacity development, and long-term strategic planning—in addition to program implementation and execution.
The oil and gas industry uses energy in its operations to make products, but it is also the main supplier of energy for transport, electricity and heating. Consumer demand for energy, driven by emerging economies, is expected to increase 35 percent by 2035 according to the International Energy Agency, an increase likely to be met predominantly by fossil fuels.
Yet despite the growth in demand, the oil and gas industry still faces financial pressures and must innovate in order to be competitive. So called, “easy oil” has been depleted and refining margins have become squeezed as more processing is necessary to treat heavy crude and produce the low-sulphur products regulations are demanding.
In order to compete in these new markets, oil and gas companies will have to reduce operating costs and diversify their product base through new renewable energy technologies.
The oil and gas industry also has an important role to play in the transformation of global sustainable energy markets, which represent a new and expanding business opportunity to create new revenue streams. Oil and gas companies will be leaders in developing advanced biofuels and are also entering renewable markets such as wind and solar.
Finally, oil and gas companies can help increase access to electricity for the 1.3 billion people without access by supplying energy such as natural gas captured from the redirection of current gas flaring streams, and investing in activities that provide cleaner and more efficient cooking options for the 2.7 billion people who rely on wood, coal, charcoal or animal waste for cooking and heating.
The oil and gas industry can take five priority actions to become more energy efficient and to advance its business opportunities in the sustainable energy market:
Use more renewable energy sources and emphasize energy efficiency throughout the entire fuels supply chain.
Reduce the flaring of gas from operations and identify opportunities to reuse captured gas on-site or provide energy to local communities.
Invest in research and development and utilize core competencies to bridge the gap from fundamental research to commercialization of liquid renewable transportation fuels and renewable generation technologies.
Promote international trade in sustainable energy products.
Use innovative business models and create new products and services to improve energy affordability and to enable access to clean cooking and heating solutions.
October 2, 2012
Skip Footer Links