New research from data and analytics giant IHS Markit has found increasing use of renewable energy to fuel oil and gas operations, Kallanish Energy reports.
Although the company notes that there are still relatively few such examples in the context of the wider industry, the pace of change is beginning to increase.
IHS Markit recorded fewer than 15 such renewable energy projects from beginning of the century through to 2017. There have since been 13 announcements made in 2018 and 15 made in 2019 in its database.
Solar power is the most frequently adopted renewable source for these projects, followed by hydropower and wind. The main factor behind this growth trend is greenhouse gas (GHG) emissions reduction, and IHS Markit expects that projects announced in 2018 and 2019 will prevent more than 3 million metric tons of annual carbon dioxide (CO2) emissions combined.
Judson Jacobs, executive director, Upstream energy, at IHS Markit said that there are also other factors at play in the oil and gas industry beyond GHG emissions reductions, such as increased pressure from company stakeholders.
“It is also about steeply declining costs for renewables and the industry’s growing familiarity and experience with these technologies,” said Jacobs. “And there are tangible improvements to operational performance that go along with using them.”
IHS Markit estimates that the adoption of renewable energy sources for oil and gas projects will continue to grow in future, although there are challenges to widespread adoption. These include high costs compared to traditional energy generation sources, supply chain development in remote regions, and energy storage for intermittent renewable sources.
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