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S&P Global Commodity Insights shows that two thirds of UK and Norway North Sea oil and gas production has lower-than-average greenhouse gas intensity

Published by , Editorial Assistant
Oilfield Technology,

A new analysis of North Sea oil and gas production by S&P Global Commodity Insights illustrates the degree that greenhouse gas (GHG) intensity can vary from one oil and gas asset to the next, and the factors that ultimately determine it.

The average GHG intensity of production in the UK and Norwegian areas of the North Sea was 12 kg of carbon dioxide equivalent per barrel of oil equivalent (kgCO2e/boe) in 2021. A deeper analysis revealed that nearly two thirds of total production was found to have an intensity below that basin-wide average. Meanwhile, assets responsible for just 20% of total production generated half of the basin’s total GHG emissions.

Overall, individual assets across the basin displayed a wide variability, ranging in GHG intensity from less than 1 kgCO2e/boe to nearly 150 kgCO2e/boe. Such a wide range is consistent across all the regions that have been explored to date and highlights the challenges of averages, the report finds.

The findings are derived from a new S&P Global Commodity Insights capability. The new capability, built upon existing proprietary upstream databases and emerging sources such as reported emissions and satellite flaring data from the Earth Observation Group, makes it possible to estimate the totality of an upstream oil and gas play’s emissions and emissions intensity.

Kevin Birn, Global Head for S&P Global Commodity Insights’ newly formed Centre of Emissions Excellence, said: “In every play where we have looked, we continue to find wide variability in the greenhouse gas intensity with any one asset potentially being significantly different from the average.”

The considerable variability of the findings illustrates several key factors that ultimately influence the GHG intensity of an asset. These include productivity, where younger and more productive fields tend to be less GHG intensive than older, more geologically challenging fields. The latter also may require energy-intensive enhanced recovery techniques, increased drilling to maintain productivity, and older technology can also put upward pressure on emissions intensity.

Other factors that impact the GHG intensity of individual assets include the degree to which operations can be electrified and the degree of venting and flaring.

The S&P Global Commodity Insights analysis compared production in the United Kingdom and Norwegian areas of the North Sea to illustrate the influence of these factors. The analysis found that, on average, UK production in the North Sea was nearly three times more GHG intensive (23 kgCO2e/boe) than Norwegian production (8 kgCO2e/boe).

Norwegian operations were advantaged on a GHG intensity basis as, on average, fields tended to be less mature and with a greater share of output from larger, more productive, and technologically advanced operations. Additionally, Norway benefited from electrification projects that tie back to Norway’s relatively low-emission, hydro-dominated power grid.

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Offshore news North Sea oil news Oil & gas news