Today, oil and gas companies face increasing pressure to immediately address the Greenhouse Gas (GHG) emissions associated with their operations and the accelerating economic transition toward new forms of low-carbon energy. At the same time digital innovation to drive business agility and competitive differentiation has proliferated in the industry with availability of new monitoring, data acquisition, and business intelligence capabilities. Leaders in the oil and gas industry will effectively combine these efforts, leveraging digital transformation to manage and optimize a comprehensive GHG agenda. Winners in an economy transitioning to lower carbon emissions will be agile in their data practices, able to drive actionable insights, measure and manage carbon risks and accelerate opportunity that creates economic value for the enterprise.
An enterprise decarbonization software platform enables organizations to leapfrog a digital divide and a lagging GHG strategy. Decarbonization software both digitizes the performance tracking and reporting of carbon emissions and also drives value creation by leveraging business intelligence to unlock emissions reductions opportunities, business transformation and manage risk. This new class of technology addresses 3 core value dimensions of managing a carbon agenda that are uniquely important in the oil and gas industry:
1. Simplify Performance Tracking and Reporting
Key Software Features:
- Monitor transformation with automation: Oil and gas companies need to monitor emissions performance across all types of greenhouse gases, including fugitive emissions, across their entire business operations. To drive improvement, initiatives to reduce emissions need to be tracked systematically over time, and dynamically measured against targets. Additionally, real-time detection of emissions irregularities that lead to non-compliance need to be detected quickly to manage risk.
- Flexible reporting: Most oil and gas organizations report emissions under multiple frameworks in support of ESG performance, climate reporting, and regulatory requirements. Decarbonization software platforms offer flexibility to meet the needs of various calculations and methodologies in order to save time and enhance accuracy.
2. Decarbonization opportunity creation
Key Software Features:
- Process-Level GHG emissions tracking: Oil and gas is driven by operational complexity that requires high levels of data resolution to uncover executable opportunities. Carbon inventories conducted solely for reporting purposes often lack sufficient detail to identify actual GHG abatement potential. Decarbonization platforms provide a detailed perspective on the sources of emissions across operations and the processes that drive them in order to make insight more specific and actionable.
- Forecasting: Opportunity creation requires that emissions sources and processes not only be quantified historically, but also need to be transposed into a forecast in order to accurately identify carbon reduction potential.
- Cloud-Based: Dispersed operations, geographic diversity and multi-stakeholder processes make opportunity creation dependent on systematic collection of data in a single-source. Cloud-based computing helps break down data-silos across geographies, sites and functional groups, ensuring that technical data is accurate, and providing up-to-date insights.
3. Capital-efficient opportunities and decarbonization pathways
Key Software Features:
- Marginal Abatement & Levelized Carbon Abatement Cost Curves: Wide comparability of carbon reducing projects that vary in technology, financial and environmental impact can strain decision making and budgeting processes. Marginal Abatement Cost Curves (MACC) and Levelized Cost of Carbon Abatement Curves enable carbon related initiatives to inform capital planning processes with confidence.
- Emissions pathways and scenario analysis: Hitting carbon targets requires an understanding of emissions pathways that synthesizes a variety of emissions scenarios and incorporates financial and environmental impact over time. Furthermore, capital markets are increasingly requiring that the industry consider various social, scientific and economic scenarios in their planning to ensure climate risks and financial impact are effectively addressed.
- Internal Carbon Pricing: Comprehensive internal carbon pricing can ensure that all capital planning incorporates potential carbon related risks and opportunities and can effectively operationalize migrating areas of risk into opportunity and value creation.
SINAI’s inter-dependent modules allow corporations to onboard at any moment in their carbon journey and provide value at every step. Today, some of the worlds largest enterprises are using SINAI to measure, price and evaluate carbon risk, using science-based methodologies and artificial intelligence. For more information, schedule a demo with us!