The oil and gas industry is a significant contributor to global greenhouse gas emissions, both through its operations and the end use of its products. While a substantial portion of these emissions is classified as Scope 3, the industry's own operations are responsible for about 9% of all human GHG emissions, translating to roughly 4.5 billion tonnes annually. In India, decarbonizing this sector is critical for meeting climate targets and ensuring sustainable energy development.

 

Current Scenario 

Operational Emissions

• Methane Emissions: Methane, a potent greenhouse gas, constitutes a significant portion of emissions from the oil and gas sector. In India, fugitive methane emissions from inefficient operations and leaks are a major concern. Methane has a global warming potential 25 times greater than CO2 over a 100-year period.
• Gas Flaring: Gas flaring, the burning of excess methane at oil wells, is a considerable source of CO2 emissions. India flares around 1.5 billion cubic meters of natural gas annually, contributing significantly to its carbon footprint.
• Energy Consumption: The extraction, refining, and transportation of oil and gas are energy-intensive processes, heavily reliant on fossil fuels, which further increases CO2 emissions.

Challenges

• Technological Barriers: Implementing advanced technologies to detect and repair methane leaks and reduce flaring is challenging and costly.
• Regulatory Framework: Ensuring compliance with stringent emissions regulations requires robust policies and enforcement mechanisms.
• Economic Pressures: Balancing economic growth with environmental sustainability poses a challenge, especially in a developing economy like India.

Key Technology

Methane Leak Detection and Repair

• Using drones, satellite monitoring, and infrared cameras to detect methane leaks significantly reduces emissions. 
• Implementing stringent maintenance programs to regularly inspect and repair equipment reduces fugitive methane emissions.

Gas Flaring Reduction

• Capturing and utilizing flared gas for power generation or as a feedstock for petrochemicals reduces CO2 emissions. ONGC has initiated projects to capture flared gas and use it for electricity generation.
• Strengthening regulations to limit gas flaring and incentivizing the adoption of gas capture technologies further reduce emissions.

Energy Efficiency Improvements

• Renewable Energy Integration: Incorporating renewable energy sources, such as solar and wind, into oil and gas operations can reduce reliance on fossil fuels. Cairn India is exploring the use of solar energy to power its oil fields.

Carbon Capture, Utilization, and Storage (CCUS)

• Deploying CCUS technologies to capture CO2 emissions from refineries and other facilities.
• Utilizing captured CO2 in enhanced oil recovery (EOR) or converting it into useful products creates a circular carbon economy.

Alternative Fuels and Feedstocks

• Use of biofuels and biogas as alternatives to conventional fossil fuels  reduces emissions. The Government of India aims to achieve 20% ethanol blending in petrol by 2030, significantly lowering CO2 emissions from transportation.
• Developing hydrogen as a clean fuel and feedstock for the petrochemical industry further decarbonize the sector. 

Digitalization and Automation

• Implementing digital technologies such as IoT, AI, and big data analytics optimize operations, reduce energy consumption, and lower emissions. BPCL has introduced digital twins in its refineries to improve efficiency and reduce emissions.
• Using predictive maintenance powered by AI and machine learning prevent equipment failures and minimize leaks, enhancing operational efficiency and reducing emissions.

Case Studies 

• ONGC's Gas Flaring Reduction Project: ONGC has initiated projects to capture flared gas and use it for electricity generation. This project is expected to reduce CO2 emissions by approximately 1 million tonnes annually.
• Indian Oil Corporation's Energy Efficiency Measures: The Indian Oil Corporation has implemented energy-efficient practices in its refineries, achieving a 15% reduction in energy consumption. This initiative has significantly reduced the company's carbon footprint.