Low Carbon Operational Efficiency Committee

Launched in 2022, the Low Carbon Operational Efficiency Committee will focus on decreasing CO2 emissions and methane intensity in upstream operations. It will coordinate its efforts with global industry groups including the Oil and Gas Climate Initiative (OGCI), Ipieca, the American Petroleum Institute (API), the Energy Institute, the Methane Guiding Principles, and the Global Gas Flaring Reduction Partnership (GGFR).

Mission and Aims

The Low Carbon Operational Efficiency (LCOE) Committee focuses on streamlining and integrating the works pertinent to the decarbonization of Upstream Operations (scope 1 and 2 emissions), targeting a constant decrease of both Carbon and Methane intensity indexes.

LCOE Committee disciplines and accelerates the standardization of Methane emissions, Flares & Venting technologies and processes to improve their cost, scheduling, risk and safety.

Furthermore it pursues Industry collaboration and sharing of lesson learned on Electrification of Facilities and systematic implementation of Energy Efficiency Best Available Technologies (BAT).

The above activities are integrated in an organic Upstream Decarbonization Regulatory Framework to enhance the efficiency and the reliability of related Low Carbon projects and operations executed to reducing the carbon footprint of Oil & Gas Facilities.

LCOE Committee composed by key Operations managers in leading positions within IOGP Member Companies is fully integrated within IOGP overall Energy Transition Program and collaborates with other Associations working in the Climate Change space, as well as with International and Regional Regulators and Standards Organizations.

It focuses on areas where IOGP Members can leverage their expertise and ensure that it aligns with, and does not duplicate, activities of other industry bodies, such as OGCI, IPIECA, Methane Guiding Principles, World Bank GGFR, EI, API, ISO, SPE.

The core success drivers to be measured are: increase on the number of Projects executed by Oil & Gas Operators on Flaring & Venting minimizations, Fugitive emissions detection and mitigation, Electrification of Utilities and proper connections to clean power sources,  abatement of stationary combustion emissions, massive deployment of Energy efficiency initiatives, broader Stakeholders and Governments acceptance on Oil & Gas Operators commitment to pursue Road to Net zero pathway.

Objectives

The Carbon Capture, Transportation and Storage Committee addresses the Oil & Gas industry’s ability to contribute to a widespread and economically viable deployment of CCS, including capture, transportation, injection, and storage of carbon dioxide, through shared knowledge, expertise, and lessons learned.

Existing standards relevant to CCS (including capture from different flue gas, transportation by pipeline, shipping and road/railway, storage, and monitoring) will be reviewed and proposals developed for both amendments and for new standards needed to support larger deployment of CCS. The Committee will consider Member Companies practical experience and internal needs in order to shape an exhaustive and organic regulatory framework for CCS projects.

CCS Committee will steer and coordinate dedicated Task Forces with Member Company staff subject matter skilled and highly experienced in CCS topics to produce recommended practices to enable Oil & Gas Operators to decrease CCS project risks and maximize safety during the entire project lifecycle.

Contact

The Low Carbon Operational Efficiency Committee is chaired by Andy Best, bp

Vice Chair is Kamal Chhabra, Shell

IOGP Energy Transition Director: Concetto Fischetti cf@iogp.org

Committee Manager: Dario Buccellato db@iogp.org

Structure

The LCOE Committee has the following subcommittees and task forces:

• To be added

Deliverables

LCOE Committee will address the Oil & Gas Industry’s ability to enhance Scope 1 reduction as fast as possible and in an economically viable manner. This requires an holistic approach integrating the various strategies to tackle GHG emissions caused by stationary combustions by fossil fuels heat and power utilities, routine and non-routine flaring and venting, gaseous  fugitives.

LCOE Committee will steer and coordinate dedicated Task Forces with Member Company staff subject matter skilled and highly experienced in various disciplines ranging from gas processing, instrumental, electrical, mechanical and rotation machineries, environmental and safety engineering, asset integrity.

Current 2022-2023 Scope of Work encompasses deliverables pursued by three Task Forces  as follows:

1. Electrification

Lesson Learned and Recommended Practices for assessment, development, and delivery of electrification schemes for existing and new assets (2022).

Those documents will address potential economic and standard electrification schemes for brown and greenfield onshore and offshore facilities through the consolidation of lessons learned from pre-selected electrification projects and gap analysis in design integration standards.

Proper integration will be maintained with JIP33 electrical equipment specifications and the development of international standards that can be used without the need for additional supplements.

Further works (2023) encompasses: a catalogue of existing available options/technologies, including design and integration data, with relevant detail coming from operator-use experience, OEMs, suppliers, and technology licensors and two Methodologies on Early Electrifications Concept Screening and Lifecycle (capex, opex, carbon) power supply options.

2. Flares and Venting

Recommended Practices (2022) addressing continuous flaring sources in normal operations (including purge volumes) and containing measures for source recovery and application of flare closure (such as via a seal device or a valve) and flare ignition systems as well as. This will be complemented by an other set of Recommended Practices addressing the design of flares and venting sources to be minimized. All above will be referenced with the ‘Flaring Management Guidance’ (FMG) document developed jointly with IPIECA and GGFR

Furthermore there will be a proper integration with OGCI, IPIECA and the Environmental Committee coordinating the Task Force that is developing the ‘Methane Recommended detection and quantifications Practice’ to ensure a valuable high-level framework for gas emissions management.

In line with the same approach, a systematic interface will be assured with Methane Guiding Principles in order to deliver successfully the ‘Methane embedding outreach program’ being pursued jointly by MGP, EI and IOGP.

Furter works (2023) will encompasses a database and series of practical guidelines with typical venting situations, and their possible technology solutions for retrofit and new build assets, including adoption barriers and options to remove these barriers.

3. Energy Efficiency

With the objective to drive widespread implementation of energy efficiency/optimization technologies and practices linked to manage fuels consumptions in both brown and greenfield facilities and plants, a series of workshops to share recent experiences and lessons learned (2022) for optimized design and operations will be pursued and finalized. The existing online IPIECA/IOGP Compendium will be updated and deployment experiences incorporated. Other Best Available Technologies will be added.

Appropriate KPIs and metrics (2023) will be established, likely including both asset level and system/equipment level, including baselines, e.g., for suction and discharge pressure of compressors, flowrate, recycling, and inlet temperature. This builds on the work of the Environmental Committee Energy Efficiency Indicator Task Force which included a pilot exercise with third-party benchmarking providers.

Operational Best Practices (2023) would be released to include the efficient use of fuel consumption metering and monitoring and energy in gas turbines, compressors, pumps, and cooling and heating. It will also include methodology/guidelines for energy assessment/audit, and for measurement and verification of benefits from energy efficiency projects, with an explicit link with GHG emissions savings, specifically for Upstream.

Furthermore, the LCOE Committee will support IOGP efforts to:

• Elaborate Energy Transition Metrics and KPIs to be adopted by IOGP to report O&G performance within Road to Net Zero pathway
• Support, with technical and scientific references, advocacy to increase acceptance of Methane within future Energy primary demand mix and contribute to other Directorates addressing Carbon policies and business models needs
• Assist at key Energy Transition related events, including regional or international regulatory meetings, and ensure effective engagement with all Members and related business partners, O&G trade associations, regulatory bodies, and other stakeholders active in the Climate Change space as needed.