8/13/2019 Ipieca Ogp Fact Sheet Energy Efficiency

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Oil and gas: meeting challenges today... for tomorrow

Hydrocarbons willremain essential

to sustainableglobal economicdevelopment and

prosperity fordecades to come.

Yet meeting the

worlds growingneed for energymust be reconciled

with security ofenergy supply

and environmentalprotection.

ENERGY EFFICIENCY:IMPROVING ENERGYUSE FROM PRODUCTION

TO CONSUMERENERGY SAVINGS AND EMISSIONSREDUCTIONSThe oil and gas industry is committed toincreasing energy efficiency in its operationsand working with end-users to improveefficiency in the use of its products. Finding

ways to use energy more efficiently can make amajor contribution to moving the world onto amore sustainable energy path.

Oil and gas companies have a strongfinancial incentive to save energy, because ofthe large share of energy in the overall costof operating their facilities. Efficient energy

use reduces costs along the whole supplychain and makes energy more affordable toconsumers. In fact, the industry manages tokeep energy consumption from production andsupply of a standard gasoline or diesel productto less than 18%* of that consumed throughouttheir life (N.B. efficiency per unit of output, abroader term for all petrochemicals produced,is greater still).

Investments in energy efficiency are notalways reflected fully in the wider trends forenergy intensity in the oil and gas industry. Inspite of actions to reduce energy intensity across

Production efficiency: Saving energy along the supply chain

Industry efforts to improve the efficiencyof oil and gas supply processes, combat

waste and reduce emissions include:nenergy systems management,

involving the use of informationtechnology to analyse and controlenergy consumption in production andrefining processes;

nmore efficient exploration, throughimproved drilling success rates thanksto advances in seismic surveying andanalysis, and drilling techniques;

nco-generation of heat and powerand the recovery of waste heat fromproduction units using heat exchangers.

nreduced flaring and venting of

associated gas, through investment ingas processing and distribution;

nimproved process operations andequipment, such as more efficient

pumps and compressor turbines, andnhigh-pressure pipelines, which require

less energy input per unit of oil or gastransported per kilometre.

*See CONCAWEs well-wheels study

8/13/2019 Ipieca Ogp Fact Sheet Energy Efficiency

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Oil and gas: meeting challenges today... for tomorrowOil and gas: meeting challenges today... for tomorrow

the supply chain (see box on page 1), there area number of factors increasing energy use.

Oil and gas production and oil refining

became progressively more energy-intensivethrough the 1990s. This is because it has beenincreasingly necessary to drill deeper to findand produce oil and gas, to use secondaryand enhanced oil and gas recovery techniques,and to exploit heavier oil deposits and olderreservoirs. In refining there is a demand toprocess greater volumes of crude, whilst alsoconverting most of that crude into end products,and reducing environmental impacts throughenergy intensive processes such as greaterdesulphurization. These enhancements consume

more energy.Even with these challenges, energy intensity

in both the upstream industry and in refininghas fallen significantly since 2007 and is nowback to below the level of the late 1990s, thanksto significant investments by the industry inenergy-saving technologies.

CONSUMERS EFFICIENCYThe industry is also promoting energy-efficientuse of its products by end users. Significantsavings can be made as, typically, around 18%of energy is consumed in the production offuels, the remaining 82% is consumed by end-use. For example, a 10% improvement in theefficiency of oil use in transport and other enduses would save the equivalent of one-half ofall the energy used by the oil and gas industry

worldwide.As well as improving efficiencies in their

supply chains oil and gas companies arecontinually seeking to reduce energy needsthrough improvements in the quality of theirproducts. Examples include advanced roadfuels, motor oils and lubricants that improve

vehicle performance. Several companies havedeveloped proprietary additives for gasolineand diesel that help to enhance fuel economy.Some companies also offer specialized energyservices such as energy audits and consulting

advice on how to reduce energy use to businessand public sector customers, such as schoolsand hospitals.

WELL TO WHEELSIn the transport sector, the Well-to-Wheelsinitiative has helped establish the impact ofdifferent fuels and vehicle engines. Developedjointly by the oil industry research bodyCONCAWE, the European Council for

Automotive R+D and the European CommissionsJoint Research Centre, Well-to-Wheels calculatesthe energy use and greenhouse gas emissionsassociated with different fuels and powertrains,and the associated costs and benefits.

Industry partnerships facilitate the sharingof ideas and promote the awareness of energyefficiency and emissions reduction methodsand best practices both within the industry andexternally. The industry is also collaborating withgovernments and other bodies on research anddevelopment of more efficient vehicles, as well asdeveloping in-house process technologies for useunder licence. For example, many oil companiesare helping to develop advanced vehicletechnologies and components, such as light-

weight plastics and resins, often in partnershipwith automobile manufacturers.

WHAT NEXT?The oil and gas industry recognises the needfor everyone to use all types of energy moreefficiently and more cleanly and is committed to

working with other stakeholders to drive forwardinitiatives to make this happen. Oil and gascompanies will continue to research and developnew technologies.

Energy efficiency is essential to conservingenergy supplies and reducing greenhouse gasemissions. The oil and gas industry will continue

to support policymakers in formulating cost-effective strategies and measures to promote therational use of energy for the benefit of all. n

IPIECAis the global oil andgas industry association for

environmental and social issues.It develops, shares and promotesgood practices and knowledge

to help the industry improveits environmental and social

performance; and is the

industrys principal channelof communication with the

United Nations.

OGPworks on behalf of theworlds oil and gas exploration

and production companiesto promote safe, responsible

and sustainable operations. Itrepresents the industry before

international organizations andregionally at the European

Commission.

Printed for Rio+20, June 2012

World energy consumption along the oil and gas supply chain

0 50 100 150 200 250 300

1990 1995 2000 2005

9.0%8.0%7.0%6.0%5.0%4.0%3.0%2.0%1.0%0.0%

Pipelines

LGN

Oil refining

Production/processing

Million tonnes of oil equivalent

Energy consumption, 2009Pipeline transport

Liquefaction (LNG) /regasification plants

Petroleum refineries

Oil and gas extraction

Energy

use

perun

itof

oiland

gasoutp

ut

For further informationCONCAWE www.concawe.be

The European Council for Automotive

R&D (EUCAR) www.eucar.be

The European Commissions JointResearch Centre goo.gl/cEQ1j

Good practice guidance on preparingeffective flare management plans

goo.gl/PgsF4

Source: IEA