Market drivers include sustainability commitments, cost savings, and reductions in complexity
BOULDER, Colo., Dec. 12, 2023 /PRNewswire/ — A new report from Guidehouse Insights explores annual emissions reductions from the upstream oil & gas market globally.
Oil and natural gas meet the energy needs of about half the world. However, the resources come at a cost: together they are responsible for about 40% of global greenhouse gas emissions. According to a new report from Guidehouse Insights, annual global spending on upstream decarbonization efforts is expected to grow from about $8.5 billion in 2023 to $44.2 billion in 2032 at a compound annual growth rate (CAGR) of 20.1%.
“The upstream oil and natural gas market, which includes exploration and production activities, has many plausible options for decarbonizing,” says Peter Marrin, senior research analyst with Guidehouse Insights. “Oil and natural gas have been essential to the world’s industries and economy for decades and will remain so in the near and medium term but cleaning up the way the world produces and consumes liquid and gaseous fossil fuels must be prioritized.”
Venting and flaring unwanted gas is not just harmful to the environment, it is wasteful. Laying pipelines to gather the stranded gas is not always economically viable depending on the volume of gas; however, numerous other cost-effective technologies enable harnessing, using, and possibly selling the otherwise stranded gas instead of venting or flaring it.
Energy use is another noteworthy source of emissions from the oil patch, both onshore and offshore. Exploration and production involve drilling more than a mile into the earth, cementing and casing the borehole, completing the well, hydraulic fracturing in the case of shale resources, and the handling of various gasses and fluids on the surface. The process requires a lot of energy, most of which comes from diesel or natural gas. Electrification, especially through renewable electricity, could considerably reduce operational emissions, according to the report.
The report, Decarbonization in the Upstream Oil & Gas Market, analyzes annual emissions reductions from the upstream oil & gas market based on the source of the emissions. It also provides outlooks for the annual CAPEX needed, based on the decarbonization approach, between 2023 and 2032. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 17,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Decarbonization in the Upstream Oil & Gas Market, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
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SOURCE Guidehouse Insights
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