New digital tool delivers emissions and performance data to drillers and operators which optimizes engine utilization and reduces their carbon footprint
Aug. 18, 2021 – RigCLOUD®, the oil and gas industry’s next-generation, open, cloud-based rig instrumentation, analytics, and digital operations platform, today announced the release of its Drilling Emissions Reports, which are designed to help users optimize engine utilization and reduce their carbon footprint while drilling.
The newly released RigCLOUD emissions reporting is available to both drillers and operators.
As the energy industry collectively moves to reduce its carbon footprint, the lack of accurate emissions data continues to be an obstacle. Often, greenhouse gas emissions from the wellsite are estimated based on the amount of fuel purchased. But how much of the fuel was used? Where is the biggest opportunity for emissions optimization?
This tool provides accurate and reliable data on fuel consumption, greenhouse gas emissions, CO2 per foot drilled, average engine load and average number of engines online during each drilling activity, all accessible with the click of a button. To optimize emissions output, drilling contractors and operators have visibility into the minimum engine requirements throughout the well construction process. This capability enables customers to reduce their environmental impact without compromising operational performance.
Carlos Rolong, Senior Director of Operations at RigCLOUD, said: “Digitalization and automation have significantly contributed to improved efficiency and drilling performance. Now, RigCLOUD is using these advances to improve environmental performance. By deploying emissions analytics and advanced engine management, we are empowering anyone who is contracting or operating a rig to make progress on their sustainability commitments.”
Though reporting is an important first step, it is just the beginning. Engine optimization and management solutions will soon be available to customers. This innovative system will provide activity-based estimations of peak power demand using artificial intelligence (AI) based predictions. Similar to modern cars with auto-stop features, rig engines will cycle on or off as required during certain drilling activities to optimize greenhouse gas emissions.
Subodh Saxena, SVP of Nabors Drilling Solutions, said: “This is an exciting time in the industry as we embrace sustainability with the same collective sense of urgency that enabled us to deliver both substantial operational efficiency gains and overcome safety challenges. We are using RigCLOUD’s technology across Nabors’ fleet to improve our carbon footprint in the oilfield and I expect that this type of technology will be embraced across the industry.”
For more information: https://www.rigcloud.com/node/71
By Benjamin Beberness, Global Vice President, Oil & Gas Industry Business Unit, SAP
There is no easy way to put this; COVID-19 has been a one-two punch to the oil and gas industry from the consumer and commercial angles. With no need to travel to the office, vacations cancelled, and cargo ships at a standstill, the oil and gas industry has had to reconsider its strategy for a future. It’s clear that it will look very different from the recent past and will have to be much more sustainable. Add to this, increased tension with oil suppliers and you get the perfect storm that the industry is weathering currently. So how do you plan during such an unstable time? The solution lies in digitizing the oil and gas industry to prepare for the future of work and sustainability.
The duration of COVID-19’s impact on the industry is unknown, so devising a plan to adapt and digitize now is key to emerging from this global crisis in a strong position. While assessing the damage is important for moving forward, there are forward looking actions that oil and gas leaders can take now. After all, coronavirus is not the only factor that is fueling change in the industry. Sustainability, both in terms of the environment and company longevity, are on the minds of oil and gas executives around the world. They may be surviving this pandemic even though oil prices are plummeting, but there will always be another threat looming and growing expectations from investors to become more sustainable. This is why preparation now will pay dividends in the future.
The Current State of Oil and Gas
Oil and gas has been severely impacted by a chain reaction of events. Factories were forced to shut down, curbing the need for cargo ships and planes. Offices mandated professionals to log in from home, no longer requiring them to fill their tanks as often. Travelers cancelled their trips cutting the aviation sector’s typical 11% share of oil consumption in transportation. And as a result of all these realities, worldwide oil demand dropped considerably.
The Organization of the Petroleum Exporting Countries suggested global demand would fall by 6.8 million barrels a daythis year. While the worst is most likely behind us, as governments begin reopening municipalities, an ongoing contraction from previous highs is inevitable for the foreseeable future. But with that said, the oil and gas industry has put in significant effort to cut supply in order to minimize the blows dealt by such a major drop in demand.
Digitization Helps Oil and Gas Get Creative
The closing of offices around the world has put remote work to the test. And with many oil and gas companies relying on highly manual and in-person processes, this transition presented a number of speed bumps. However, Galp, a Portuguese oil and gas company, did not have to experience these setbacks. Even with their employees logging in from home, they set a new digital data platform live remotely to empower their modern infrastructure. This is especially notable because it is a first for such a traditional company and industry, and it paves the way for more forward thinking players in oil and gas that want to succeed, even while remote.
Galp isn’t the only company in the oil and gas space that is putting digital transformation front and center during this unprecedented time. In the past few weeks a steady stream of companies announced they would allow their workers to work from home for longer and longer periods of time due to the persistent threat of coronavirus and the proof that remote staff can be productive. Chevron CEO Mike Wirth in an interview with CERAWeek Daniel Yergin Stated “There will be a new paradigm on the other side of this. I don’t think that everybody will always work from home, but I also think the traditional model of where everybody comes to the same place and people get on planes to attend meetings … I think there will be changes” Twitter even declared that their employees would be able to work remotely permanently, so long as their positions didn’t require physical presence.
It’s entirely possible that other sectors will follow this lead and save on office space in the long run. And this, too, will impact oil and gas, as a lifestyle change away from the office will cut down on the amount of gas needed to transport professionals to offices and business meetings. Across industries, cost reduction has been a focus to ensure business continuity. Many companies are considering shedding custom code in exchange for market-based, standard solutions to dramatically reduce costs. And shedding offices could also be an essential way to save money going forward. That’s why the oil and gas industry need to make changes now in order to make the most out of what could be a permanent shift toward remote work. Digitization and automation help cut costs in a time where many other factors are largely out of a company’s control.
Shortening the Journey to Renewable Energy
Slowly, and then all at once, governments around the world were required to lower emissions and investors wanted more sustainable energy investment opportunities. In order for companies to properly measure and report out their progress, digital infrastructure must be in place properly. Repsol, Total, BP, Equinor, Shell and ENI are all part of the Oil and Gas Climate Initiative (OGCI) and have committed to a sustainable, “net-zero” version of their current selves in 2050. If the oil and gas industry standardized data collection, processing and storage going forward, then it would be much easier to determine which companies were on track to meeting their sustainability goals.
What’s Next for Oil and Gas
The oil and gas industry is due for a rebound, but the timing is unclear. A large reason for this is because oil and gas is at the bottom of the funnel for so many other industries. In order for oil demand to increase, so many other industries (like travel, manufacturing and retail) will have to open first to get people and products traveling again. Shifts in demand happened so quickly due to travel restrictions and mandatory quarantines, but the return to previous levels of travel and consumer confidence will take time. The winners of tomorrow will extend beyond the barrel and invest in renewables, digitization and diversification today.
Credit to Forbeshttps://www.forbes.com/sites/sap/2020/06/23/the-future-of-oil-and-gas-is-sustainability/?sh=634ac751747c
Find out how SAP is helping Oil and Gas companies prepare for a different future here.
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By Pamela Cordova, Sr. Rig Analyst, IHS Markit
Sustainability and being part of the energy transition has become an integral part of drilling contractors’ strategies in recent years, as drillers attempt to ‘out-green’ each other. Prompted by governments and the financial markets, international drilling contractors and operators have realised they need to be part of the solution in reducing emissions and achieving Net Zero targets as soon as possible.
As news reports focus on climate-related global events such as heatwaves, floods and wildfires, and the new Intergovernmental Panel on Climate Change (IPCC) report sees the UN Secretary General call for an end to new fossil fuel exploration and development, all stakeholders in the drilling industry are the subject of increasingly stringent regulations and under greater pressure from investors, the media and the public. Moreover, they have to plan for this in a volatile oil price and low day rate environment.
In all but the most rapid energy transition scenarios, IHS Markit expects demand for oil and gas to continue rising for at least another decade and remain considerable for many years after – thus the offshore drilling industry has an important role to play in a sustainable energy future, ensuring this demand is met with responsible operations that reduce the impact on the environment.
To comply with the more stringent regulations and emissions targets that are being set, offshore rigs are required to use best available technology to operate with the least possible damage to the environment and reduce Green House Gas (GHG) emissions in a timely and efficient way. How companies transform themselves to become greener while investing in new technology and producing returns is the real challenge.
International drilling contractors leading by example
International drillers are trying to achieve their Energy Transition goals via low-carbon solutions, through reducing Scope 1 emissions, which come from engines used for power generation. This involves optimising drilling through new systems centered around energy efficiency and reduced fuel use by varying energy loads. This helps rigs to drill faster and smarter, reducing costs and fuel consumption.
Currently at the forefront stands Maersk Drilling, with an ambitious climate target: a 50% C02 emissions intensity reduction from drilling operations by 2030. A number of years ago Maersk Invincible in Norway became the first jackup to run on shore-power, delivering huge yearly reductions in CO2 and Nitrogen Oxides (NOx) emissions. This method is now being explored in other regions.
In addition, Dolphin Drilling, COSL and Transocean have achieved ISO 50001 certification through Energy Management Systems, reducing energy consumption, environmental impact and increasing profitability.
Below, IHS Markit lists the most common initiatives being undertaken by drilling contractors.
Reducing fuel consumption by optimising rigs’ power plants
Various contractors have improved engine efficiency in terms of diesel consumption by installing hybrid power with batteries, closed bus systems, and electrification from shore.
Since 2019, Seadrill-managed semi West Mira and Transocean semi Transocean Spitsbergen have had hybrid power plants using Energy Storage Systems (ESS) to reduce fuel consumption. Both units are harsh-environment deepwater semis, and the economic incentives were provided by the Norwegian NOx Fund, an initiative dedicated to reducing NOx emissions. It contributes a grant of up to 80% of project costs, subject to verification of the emission-reducing upgrades. Transocean is also looking at placing more energy storage systems on another eight rigs.
A number of contractors have implemented power optimisation to improve fuel efficiency. COSL Drilling Europe has developed an Energy Control System that reduces the number of active generators on rigs and increases efficiency. Valaris’ use of ‘Green Dynamic Positioning’ mode in benign conditions during non-critical operations is ready to be deployed on most of its Dynamically Positioned (DP) assets. Engine optimisation is planned on one drillship in 2021 and is in the pre-FEED stage on the remainder of the floater fleet. Transocean currently has most of its active fleet modified for closed bus, two engine DP operations (running the minimum number of engine rooms possible at any time – to reduce carbon emissions).
Odfjell Drilling installed the Siemens Energy BlueDrive DC-Grid solution on Deepsea Atlantic and Deepsea Nordkapp. which allows peak shaving of drilling loads, so fewer generator sets can run at higher and steadier loads — reducing fuel consumption and carbon emissions. The contractor is looking at the opportunity to include this on Deepsea Stavanger, Deepsea Aberdeen, and Deepsea Yantai at a later stage.
Installing Selective Catalytic Reduction (SCR) systems
In the past year, at least 13 rigs owned by Valaris, Transocean, Seadrill, Noble, Maersk Drilling and Borr Drilling have been confirmed as having Selective Catalytic Reduction (SCR) systems onboard, an emissions control technology system which uses ammonia injection to convert NOx into harmless water and nitrogen. This is expected to reduce NOx emissions by up to 98%. The chart below shows the composition of rigs with SCR. This information can now be retrieved from IHS Markit’s RigPoint/RigBasedatabases.
European operators remain at the forefront in incentivising the drilling industry to invest in greener technologies, not only in Europe but also globally, as recently demonstrated by Equinor in Brazil. The operator has recently contracted drillship West Saturn and fuel consumption is expected to be reduced by between 10-15% with the introduction of a combined hydrogen and methanol injection system along with other energy efficiency upgrades. With these modifications, emissions of CO2 are expected to reduce by between 10-15%, and NOx by between 30-80%. It is understood Equinor will compensate Seadrill for the fuel consumption savings to justify the investment.
Increasing efficiencies by using data analytics in internal emissions monitoring
Valaris, Noble, Transocean, Stena, Maersk and Saipem are using their own analytics software packages to monitor and reduce fuel and emissions on rigs. For example, Valaris has the Valaris Intelligence Platform (VIP) which allows real-time tracking and analytics of GHG emissions and fuel efficiency through Power BI dashboards being deployed across the fleet. Currently it is on 14 rigs, and there is a goal to have it fleetwide by the end of 2021.
Transocean is installing its Smart Equipment Analytics (SEA) tool on 19 rigs. This is a dashboard that provides real-time data for monitoring equipment health, inferred emissions, energy consumption, and power plant performance. Stena has its Energy and Emissions Meters on Stena Carron and Stena IceMAX. Roll out is planned for the rest of Stena fleet.
Green class notations
Some major drilling contractors such as Valaris, Transocean and Seadrill have had a long-standing interest in sustainability efforts and many designs or recent upgrades have allowed rigs to be certified for environmentally friendly classification notations. The classification societies provide class notations that reflect a rig’s technology to reduce its environmental footprint. The American Bureau of Shipping (ABS) has class notations ‘ENVIRO’ and ‘ENVIRO+’. It recently introduced the the Low Emissions Vessel (LEV), NOx-Tier III, EEDI-Ph3 notations. DNV has the ‘Clean‘ and ‘Clean design‘ notations. IHS Markit’s rig database RigPoint provides information on the rigs that have rig class notations. Currently there are 36 rigs with any of these classes, illustrated in the graph below.
Below is a summary of the recent new technology implemented on offshore rigs to reduce GHG emissions. This information can now be retrieved from RigPoint and RigBase.
Alternative opportunities, creating partnerships
The Energy Transition can create new business opportunities for drilling contractors, as new technologies required to tackle emissions reductions need skills and capabilities found in the drilling industry: for example, using rigs for other purposes such as Carbon Capture and Storage (CCUS), and Geothermal energy.
Stena is investing in DCarbon X, which will use drilling units to explore for geothermal energy, CO2 and other gas storage locations that DCarbonX has identified. Others are investing in low-carbon technologies such as Odfjell Drilling investing in the Offshore wind power company Oceanwind AS, which has the Odfjell Oceanwind’s WindGrid™ hybrid solution for micro-grids enabling up to 70% reductions in carbon emissions. It owns Mobile Offshore Wind Units (MOWUs) to supply electricity to ‘off-grid’ or ‘micro-grid’ consumers, that could be used for offshore rigs.
Carbon Capture and Storage (CCS) projects are becoming increasingly important globally, and drilling contractors are creating partnerships with operators and industry participants to collaborate in reducing the environmental footprint. For example, in Australia, the federal government encourages upstream and industrial firms to support carbon-reduction projects. This aided BPH Energy’s CCS-Baleen well, for which a rig contract will be announced soon, and Victoria CarbonNet CCS project off Victoria which used jackup Noble Tom Prosser to drill the first well for testing the seabed for CCS purposes. The CarbonNet Project was established in 2009 by the Australian and Victorian Governments as part of a suite of solutions that have the potential to reduce CO2 emissions. In addition, Saipem is designing a jackup for re-injection of CO2.
In Denmark, Maersk Drilling is participating in Project Greensand. This is a CO2 storage consortium formed by INEOS Oil & GasDenmark and Wintershall Dea, providing an opportunity for offshore rigs to be used to repurpose existing oil and gas wells for CO2 injection. The project aims at building infrastructure and capabilities that will enable CO2 captured in onshore facilities to be transported offshore for injection and storage beneath the seabed. Maersk Drilling is also investing in innovation such as alternative fuel types for the rigs.
Industry players are becoming acutely aware of the need to step up their green credentials. The focus has been on upgrading existing rigs to reduce their environmental impact despite the capital intensity. Most recent upgrades have been in Northwest Europe and deepwater areas, where government support, or operator partnerships justify the investments. The main driver recently has been operators stipulating increased focus on such upgrades as they have emissions targets to meet. As the industry is facing a difficult time securing funding, operators and government incentives, and increasing the profitability of the drilling industry will be key in being able to handle the investments in new technology to continue the ‘green-ing’ of the sector.
Currently, there is no widely-used certificate or benchmark through which drilling contractors can measure themselves against their peers, but operators and contractors need to work together to decide standards on emission reduction and energy efficiency in rigs. And even in the future, having the industry agree on matters like alternative choices of fuel.
IHS Markit Petrodata’s platforms RigPoint and RigBase now provide customers with the ability to search for the relevant environmentally focused green modifications per rig.
RigPoint/RigBase by IHS Markit is the leading and most trusted information source for the global offshore drilling rig market. The platforms provide data and reports on the industry dating back to 1984 and offer unparalleled information on rig supply, demand and specifications. It is maintained by a team of analysts with a combined 90+ years of experience on reporting the offshore rig market, with access to IHS Markit’s deep knowledge and understanding of upcoming exploration plans, field developments and the upstream sector, provided by around 900 analysts and experts.