The Role of Traditional Oil and Gas Companies in the Middle East’s Energy Transition
The Middle East has long been synonymous with oil and gas, powering economies and industries worldwide. However, as the global energy transition gains momentum, the region’s traditional energy players are facing a critical juncture. Far from being sidelined, these companies are poised to play a central role in shaping the future of energy, leveraging their vast resources, expertise, and infrastructure to lead a balanced and pragmatic approach to decarbonisation.
The energy transition is not about abruptly abandoning fossil fuels; it is about integrating cleaner, sustainable energy sources while ensuring economic stability and energy security. Middle Eastern oil and gas companies have begun to diversify their portfolios, investing in renewables like solar and wind, as well as pioneering advancements in hydrogen, carbon capture, and storage (CCS) technologies. These efforts are essential for reducing the carbon footprint of traditional energy sources and accelerating the adoption of new, cleaner solutions.
Additionally, these companies possess the capital, technical expertise, and global reach necessary to scale up new energy technologies. With established infrastructure and supply chains, they are uniquely positioned to drive the adoption of low-carbon fuels and technologies at a scale that smaller, new entrants may find challenging. Initiatives like Saudi Arabia’s Vision 2030 and the UAE’s Energy Strategy 2050 illustrate how national oil companies are embedding sustainability at the core of their business strategies.
The energy transition in the Middle East is a delicate balancing act. As the world demands cleaner energy, traditional oil and gas companies have the opportunity to be at the forefront of change, leveraging their strengths to not only remain relevant but to lead the path toward a sustainable energy future. Their role is critical in ensuring the transition is economically viable, technologically feasible, and socially inclusive.
Mark Venables Editor-in-Chief Oil & Gas Technology
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Aramco unveils key initiatives to boost digital transformation at Global AI Summit
Aramco has announced several new digital initiatives aimed at advancing the deployment of cutting-edge technologies across its operations. The announcements were made during the Global AI Summit (GAIN), held at the King Abdulaziz International Conference Center in Riyadh.
Ahmad Al-Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, highlighted the company’s commitment to leveraging emerging technologies such as Generative AI and the Industrial Internet of Things (IIoT) to enhance operational efficiency and help position Saudi Arabia as a global leader in AI innovation.
During the summit, Aramco signed Memoranda of Understanding (MoUs) with leading AI and technology firms, including Cerebras Systems, FuriosaAI, Rebellions, and SambaNova Systems. These partnerships aim to explore collaboration in supercomputing, AI, and the deployment of advanced Neural Processing Unit chips in Aramco’s data centers to bolster its digital infrastructure.
In addition, Aramco revealed the launch of an AI supercomputer, one of the first in the region, which utilizes NVIDIA GPUs to handle complex computational tasks such as analyzing geological data and optimizing well placement. The company also announced its collaboration with Qualcomm Technologies to implement industrial generative AI solutions for facility monitoring and predictive maintenance.
These initiatives are part of Aramco’s broader digital transformation strategy, which includes the Saudi Accelerated Innovation Lab (SAIL) and the Global AI Corridor ecosystem. Aramco’s commitment to developing AI solutions has already resulted in the creation of its first large language model (LLM) for industrial applications and the launch of the Eye on AI Program, designed to strengthen AI cybersecurity and governance.
ADNOC implements AI-driven process optimization technology across operations
ADNOC has introduced a pioneering AI-enabled process optimization system, Neuron 5, which is set to enhance efficiency and maintenance across its facilities. Initially deployed at ADNOC Onshore’s Northeast Bab (NEB) field and ADNOC Gas’s Taweelah gas compression plant, the system autonomously monitors equipment, optimizing processes and predicting maintenance needs through advanced AI and deep learning algorithms.
Neuron 5 interprets real-time data, such as pressure, temperature, and vibration, from hundreds of sensors on critical equipment, enabling predictive maintenance and reducing the need for manual inspections. Following its successful pilot phase, the technology will be rolled out across all ADNOC facilities, impacting thousands of essential components like compressors, valves, and generators.
ADNOC Upstream Executive Director Abdulmunim Saif Al Kindy highlighted the company’s commitment to integrating AI into its operations, reinforcing ADNOC’s goal of becoming a world leader in AI-driven energy solutions. The Neuron 5 deployment is expected to reduce unplanned shutdowns by 50% and extend maintenance intervals by 20%, driving significant improvements in operational efficiency. Developed in collaboration with ADNOC’s Thamama Excellence Center, AIQ, and AVEVA, Neuron 5 supports ADNOC’s broader efforts to meet global energy demand while maintaining reliability and sustainability in its operations.
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ExxonMobil to boost Guyana offshore output by
18,000 barrels per day
ExxonMobil plans to boost production from the Stabroek Block offshore Guyana by an additional 18,000 barrels per day (bpd) once it completes safety assessments and gains approval from local authorities, according to Country Manager Alistair Routledge. The company has already conducted preparatory upgrades, including adjustments to heat exchangers and valves, aiming to increase the capacity of the Unity floating, production, storage, and offloading (FPSO) vessel from 252,000 bpd to 270,000 bpd. However, the output increase is contingent on final agreement among ExxonMobil, environmental agencies, and the Ministry of Natural Resources after risk assessments and modelling are finalized. “We will not increase production until all parties are satisfied with the safety and environmental work we’ve done,” Routledge said at a news conference.
Currently, ExxonMobil’s total production in Guyana stands at 665,000 bpd, with the Liza Phase 1 project producing 157,000 bpd, just shy of its authorized capacity of 160,000 bpd. Liza Phase 2 and the Payara projects are producing at their full capacity of 252,000 bpd each.
Additionally, ExxonMobil is moving forward with plans to convert a ship hull into an FPSO for the upcoming Hammerhead project, which is expected to produce between 120,000 and 180,000 bpd. The company is also preparing for the launch of the Uaru and Whiptail projects, scheduled for 2027.
As for potential gas production in the southeastern section of the Stabroek Block, Routledge noted that future output will depend on how the reservoirs behave once production begins, following further analysis and modelling.
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ADNOC signs major LNG agreement with IndianOil for Ruwais project
ADNOC has signed a long-term Heads of Agreement with Indian Oil Corporation Ltd (IndianOil), India’s largest energy company, for the supply of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG). The deal will see ADNOC providing LNG from its lower-carbon Ruwais LNG project, which is set to begin operations in 2028. Under the 15-year agreement, LNG cargoes will be delivered to IndianOil’s ports in India, reinforcing the UAE’s commitment to supporting India’s energy security. ADNOC’s Senior Vice President of Marketing, Rashid Khalfan Al Mazrouei, highlighted the agreement as part of ADNOC’s strategy to expand its global LNG footprint and contribute to the global shift towards cleaner energy.
By 2029, IndianOil is expected to be ADNOC’s largest LNG customer, with a total annual offtake of 2.2 mmtpa, including 1.2 mmtpa from ADNOC’s Das Island facility and 1 mmtpa from Ruwais LNG. The agreement aligns with the UAE and India’s Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, which aims to boost trade cooperation between the two nations.
This deal is one of several long-term LNG supply agreements ADNOC has secured for over 70% of the Ruwais LNG project’s production capacity, solidifying the company’s presence in India’s rapidly growing energy market.
bp and Iraq sign agreement to explore Kirkuk redevelopment plans
bp has signed a memorandum of understanding (MoU) with the Government of Iraq to explore a comprehensive redevelopment plan for the Kirkuk region. The agreement focuses on investments in oil, gas, power generation, and solar energy, alongside broader exploration activities. The non-binding MoU was signed during a meeting between Iraq’s Prime Minister Mohammed Shia’ Al Sudani, Deputy Prime Minister for Energy Affairs Hayan Abdul Ghani, and bp CEO Murray Auchincloss.
The redevelopment program targets the Baba and Avanah domes and three surrounding fields—Bai Hassan, Jambur, and Khabbaz—all operated by Iraq’s North Oil Company. The plan includes rehabilitating existing infrastructure, new facility construction, and gas expansion projects, which aim to stabilize and increase production in the Kirkuk region.
In addition to oil and gas initiatives, bp also proposes investments in power generation and solar energy development, contributing to the economic revitalization of the area. Negotiations for the full redevelopment program are expected to conclude in early 2025.
ADNOC, PETRONAS, and Storegga partner to develop offshore carbon capture in Malaysia
ADNOC, PETRONAS, and Storegga have signed a Joint Study and Development Agreement (JSDA) to explore the potential for carbon capture and storage (CCS) in Malaysia’s Penyu basin, aiming to store at least 5 million tonnes of CO2 annually by 2030. The partnership will evaluate the region’s saline aquifers for CO2 storage and includes detailed studies on shipping logistics, geophysical modelling, and the application of AI to enhance storage capabilities.
PETRONAS aims to position Malaysia as a regional CCS hub, supporting the Asia-Pacific region in meeting its climate goals. The agreement also aligns with Malaysia’s National Energy Transition Roadmap, which views CCS as a critical lever in achieving sustainability and low-carbon targets. ADNOC and Storegga bring valuable expertise to the project, furthering their commitment to global carbon management and decarbonization efforts. The collaboration is set to begin later this year, marking a significant step toward large-scale industrial decarbonization in the region.
ADNOC is targeting a carbon capture capacity of 10 million tonnes per year by 2030, contributing to its Net Zero by 2045 goal, while Storegga’s global CCS expertise will be vital in advancing the project.
McDermott secures EPCI contract for Qatar’s North Field South offshore project
McDermott has been awarded an engineering, procurement, construction, and installation (EPCI) contract by QatarEnergy LNG for the North Field South (NFS) offshore pipelines and cables project. This contract builds on McDermott’s existing involvement in the North Field Expansion Project (NFXP), where the company is already working on the NFS Pipelines FEED, NFS Jackets EPCI, and NFXP Topsides and Pipelines. The NFS project will support Qatar’s plans to increase its liquefied natural gas (LNG) production from 77 million tons per annum (MTPA) to 142 MTPA. The contract includes nearly 250 kilometres of pipelines connecting offshore wellhead platforms to new onshore LNG trains, as well as subsea power and control cables. McDermott’s facilities in Qatar will handle fabrication, and its marine assets will manage the installation.
McDermott’s Senior Vice President for Offshore Middle East, Mike Sutherland, emphasized the company’s long-standing collaboration with Qatar’s energy sector, while Neil Gunnion, Qatar Country Manager, highlighted McDermott’s pivotal role in delivering the entire offshore infrastructure for the North Field Expansion.
Aramco strengthens ties with key Chinese partners through new agreements
Aramco has signed new agreements with prominent Chinese companies during a visit to Saudi Arabia by Chinese Premier Li Qiang, reinforcing its commitment to China’s longterm energy security and fostering deeper collaboration in technology and petrochemical development.
These agreements include a Development Framework Agreement with Rongsheng Petrochemical Co. Ltd. (Rongsheng) and a Strategic Cooperation Agreement with Hengli Group Co., Ltd. The deals aim to enhance Aramco’s role in supporting China’s energy needs and boost its involvement in Saudi Arabia’s economic growth.
Mohammed Y. Al Qahtani, Aramco’s Downstream President, emphasized the importance of the partnerships, saying, “These agreements highlight the long-term mutual benefits that come from close collaboration with our Chinese partners. China is a critical part of our global downstream growth strategy, and we look forward to advancing opportunities in this important market.”
The Development Framework Agreement with Rongsheng outlines potential joint projects, including expanding the Saudi Aramco Jubail Refinery Company (SASREF) and developing a liquids-to-chemicals facility. Meanwhile, the Strategic Cooperation Agreement with Hengli Group explores Aramco’s potential acquisition of a 10% stake in Hengli Petrochemical Co., Ltd., pending regulatory approvals.
These agreements further solidify Aramco’s growing presence in China and highlight the company’s commitment to innovation and economic collaboration.
QatarEnergy signs 20year naphtha supply deal with Shell
QatarEnergy has entered into a long-term agreement with Shell International Eastern Trading Company, based in Singapore, to supply up to 18 million tons of naphtha over the next 20 years, starting in April 2025. The agreement marks QatarEnergy’s largest and longest naphtha sales deal to date.
His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, expressed his satisfaction with the agreement, highlighting it as the company’s second major naphtha deal with Shell since 2019. Al-Kaabi noted that the partnership strengthens QatarEnergy’s relationship with Shell, which he described as both a key off-taker of naphtha and a strategic partner.
Shell CEO Wael Sawan praised the deal, stating that it will help deliver more value to Shell’s global customers while further reinforcing the long-standing collaboration between the two companies, which includes joint ventures in LNG and the Pearl GTL Plant.
The agreement underscores the strategic importance of the partnership between QatarEnergy and Shell in global energy markets.
Gulf Marine Services secures $505 million in new and extended contracts
Gulf Marine Services (GMS), a key player in providing self-propelled, selfelevating support vessels for offshore energy operations, has secured a new long-term contract in Europe and extended two existing agreements in the Middle East. These developments have added a total of 25 months to the company’s project backlog, which now stands at $505 million—an 18% increase since mid-2024.
GMS attributes its rapid progress toward debt reduction to robust market demand. Executive Chairman Mansour Al Alami emphasized that the new European contract strengthens GMS’s role in the offshore wind energy sector, underscoring the growing need for its versatile fleet and confirming the positive market outlook. The company has also reduced its net debt significantly, meeting deleveraging goals ahead of schedule.
Kurdistan halves oil production to align with Iraq’s OPEC quota
Iraq’s semi-autonomous Kurdistan region has cut its oil production by 50%, reducing output to 140,000 barrels per day (bpd) as of September 2, following a request from Baghdad to meet Iraq’s OPEC quota, according to Kamal Mohammad Salih, the region’s minister of electricity and acting minister of natural resources. This reduction is part of Iraq’s ongoing effort to adhere to its OPEC+ agreement to curb production and avoid oversupply.
Iraq has consistently exceeded its output limits, leading to pressure from OPEC to comply with the production cuts. Tensions between the Kurdistan Regional Government and Iraq’s central government have persisted since Turkey halted a key oil pipeline in March 2023, after an arbitration ruling resulted in a $1.5 billion damages payment to Iraq for transporting crude without Baghdad’s approval.
The halt has cost Kurdistan billions in revenue and Iraq over $16 billion, according to Salih. Efforts to reopen the pipeline are ongoing, with both Turkey and the U.S. urging Baghdad to resume oil flows through the IraqTurkey pipeline, which had previously transported 400,000 bpd.
QatarEnergy signs agreement for six additional QC-Max LNG vessels with China’s Hudong-Zhonghua Shipyard
QatarEnergy has signed a deal with China State Shipbuilding Corporation (CSSC) for the construction of six additional QC-Max liquefied natural gas (LNG) vessels, bringing the total number of ships ordered under its fleet expansion program to 128. This includes 24 QC-Max mega vessels, which are the largest LNG carriers ever built with a capacity of 271,000 cubic meters each.
The new vessels, to be constructed at CSSC’s Hudong-Zhonghua Shipyard, are set for delivery between 2028 and 2031. The agreement was formalized at a ceremony in Shanghai, attended by QatarEnergy CEO Saad Sherida Al-Kaabi and senior officials from both QatarEnergy and CSSC.
Minister Al-Kaabi highlighted the strategic significance of the agreement, underscoring QatarEnergy’s commitment to maintaining its leadership in the global LNG market. The new vessels will enhance QatarEnergy’s ability to meet growing LNG demand, with a focus on fuel efficiency and reduced emissions to support a practical energy transition. This deal follows a recent order for 18 QC-Max vessels from the same shipyard, bringing QatarEnergy’s total QC-Max orders to 24, valued at approximately USD 8 billion. These state-of-the-art vessels will strengthen QatarEnergy’s LNG fleet and further its efforts in delivering cleaner energy solutions globally.
bp has greenlit the Kaskida project, its sixth offshore production hub in the US Gulf of Mexico, with first production expected by 2029. The project, centred on a floating production platform, will initially produce 80,000 barrels of oil per day from six wells in its first phase.
The Kaskida field, fully owned by bp, is estimated to hold around 275 million barrels of recoverable oil equivalent, with potential for further expansion in future phases.
Located about 250 miles off the coast of New Orleans, Kaskida taps into the Paleogene basin, unlocking significant resources for bp. The project leverages advanced technology, including 20K drilling, to safely exploit deeper reservoirs. bp aims to streamline construction and operations by employing industry-standard platform designs that can be replicated in future projects. The Kaskida field is expected to contribute to bp’s long-term strategy of delivering secure and reliable energy, while maintaining cost efficiency and maximizing returns.
Gordon Birrell, bp’s Executive Vice President of Production and Operations, highlighted the importance of the project, noting its potential to expand bp’s presence in the Gulf of Mexico. Additionally, bp’s Senior Vice President for the Gulf of Mexico and Canada, Andy Krieger, emphasized the project’s role in simplifying operations and enhancing value through industry-led design solutions.
bp approves development of sixth hub, Kaskida, in Gulf of Mexico Shell approves water injection project to boost oil production at Vito Field in Gulf of Mexico
Shell Offshore has announced the approval of a water injection, or “waterflood,” project at its Vito asset in the US Gulf of Mexico, aimed at significantly increasing oil recovery. The process, set to begin in 2027, involves injecting water into the reservoir to push more oil towards production wells, enhancing the field’s output.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the importance of the investment, noting that the project will yield additional high-margin, lower-carbon barrels, aligning with Shell’s broader strategy in the Gulf of Mexico. The Vito field is expected to benefit from the enhanced oil recovery method, as waterflooding helps maintain reservoir pressure and sweep oil towards production wells.
As the leading deep-water operator in the Gulf of Mexico, Shell’s operations are recognized for having some of the lowest greenhouse gas emissions in the global oil production industry. This new waterflood project further underscores Shell’s commitment to maximizing the potential of its assets while prioritizing environmental responsibility.
Saipem secures $2 billion offshore contract for Marjan field development from Saudi Aramco
Saipem has been awarded a $2 billion offshore contract by Saudi Aramco as part of its ongoing Long-Term Agreement (LTA) for the development of Saudi Arabia’s Marjan field. The contract involves a wide scope of work, including the engineering, procurement, construction, and installation of wellhead platforms, jackets, tie-in platforms, rigid flowlines, and submarine composite cables.
To execute the project, Saipem will utilize its local offshore fleet and advanced dynamic positioning vessels. The company will also conduct fabrication activities at its Saudi facility, Saipem Taqa Al-Rushaid Fabricators Co. Ltd (STAR) in Dammam, emphasizing local content and bolstering the capabilities of the local industry. This award further strengthens Saipem’s long-standing presence in the Kingdom and follows a series of recent contracts secured with Saudi Aramco.
Turkey and Shell sign 10-year LNG deal to boost regional gas hub ambitions
Turkey and Shell have entered a 10-year liquefied natural gas (LNG) supply agreement, a strategic move supporting Turkey’s aim to become a regional gas hub. The deal, set to begin in 2027, will see Shell supply Turkey’s state-owned energy company, Botas, with around 4 billion cubic meters of gas annually, equivalent to 8% of Turkey’s 2023 gas demand. The agreement includes an option for Turkey to redirect LNG shipments to European terminals, further enhancing Botas’ LNG shipping capabilities and positioning the country as an active player in the international energy market. This deal aligns with Turkey’s long-term goal to serve as a key gas supplier to Europe, bolstered by investments in domestic gas production and expanded LNG import capacity.
Turkey currently imports gas via pipeline from Russia, Azerbaijan, and Iran, while LNG imports are primarily sourced from Algeria and the U.S. This new agreement with Shell follows a similar 10-year LNG deal Botas signed with ExxonMobil in May.
Eni Joins LNG Emission Reduction Coalition and signs gas collaboration deal with Japan’s JOGMEC
Eni has joined the Coalition for LNG Emission Abatement toward Net Zero (CLEAN Initiative) and signed a Memorandum of Cooperation with Japan Organization for Metals and Energy Security (JOGMEC) to strengthen collaboration in the gas and LNG sector. The agreement aims to diversify supply sources and promote the role of natural gas and LNG in the energy transition, while highlighting the importance of carbon neutrality and energy security.
The partnership will explore LNG supply opportunities from Eni to Japan and secure financial support from Japanese institutions for the Coral North project in Mozambique. As part of the CLEAN Initiative, Eni will work alongside major Japanese and Korean importers to assess LNG projects and implement best practices for emission reduction across the LNG value chain. The initiative underscores the commitment of Tokyo and Seoul to decarbonization as leading global LNG importers.
TotalEnergies signs 10-year LNG supply deal with Turkey’s BOTAŞ
TotalEnergies has entered into a Heads of Agreement (HoA) with Turkey’s state-owned energy company BOTAŞ for the supply of 1.1 million tons of liquefied natural gas (LNG) annually over the next ten years. Deliveries are set to begin in 2027, supporting Turkey’s growing energy needs as the country continues to transition towards cleaner energy sources. This long-term agreement reinforces TotalEnergies’ presence in Turkey’s LNG market and aligns with its strategy to expand LNG sales globally. The deal also positions natural gas as a crucial transitional energy source, helping to offset the intermittency of renewable energy and reduce emissions by replacing coal in power generation.
Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, emphasized that this partnership secures long-term sales and mitigates exposure to fluctuating spot market prices for natural gas, marking a significant step in the company’s LNG growth strategy.
Apollo acquires stake in bp’s Trans Adriatic Pipeline unit for $1 billion
bp has entered into an agreement with Apollo, under which funds managed by Apollo will acquire a non-controlling stake in bp Pipelines TAP Limited, the bp subsidiary that holds a 20% share in the Trans Adriatic Pipeline (TAP). The transaction is valued at approximately $1 billion, while bp will retain control of the pipeline company.
TAP is a key component of Europe’s Southern Gas Corridor, transporting natural gas from Azerbaijan’s Shah Deniz gas field to European markets, including Greece and Italy. This deal marks a new collaboration between bp and Apollo, with both companies exploring further investment opportunities in gas and low-carbon energy infrastructure.
bp’s Executive Vice President for gas and low-carbon energy, William Lin, emphasized that the partnership brings in a new investor without diminishing bp’s strategic role in TAP. Apollo Partner Skardon Baker highlighted the opportunity for investors to gain exposure to a stable, cashgenerating asset, while Apollo Partner Leslie Mapondera described the transaction as a reflection of Apollo’s ability to provide innovative financial solutions.
The proceeds from the deal will contribute to bp’s divestment target of $2-3 billion for 2024, and the transaction is expected to close by the end of the year, subject to regulatory approvals.
SLB and Aramco partner to develop digital tools for reducing industrial emissions
SLB and Aramco have entered a collaboration aimed at creating and commercializing digital solutions to reduce greenhouse gas (GHG) emissions across various industrial sectors. These efforts will be incorporated into SLB’s existing digital sustainability platform, building on a previous partnership announced in 2022. The digital platform will help industrial companies track, report, and verify their emissions, providing the data necessary for compliance and enabling strategic measures like boosting energy efficiency, cutting methane emissions, and advancing carbon capture, utilization, and storage (CCUS) technologies.
Rakesh Jaggi, SLB’s President of Digital and Integration, emphasized the importance of data in driving decarbonization efforts, stating that the platform will leverage data on a large scale to achieve meaningful reductions in emissions. The partnership will integrate Aramco’s innovative technologies, such as its Combined Heat Power (CHP) optimization and Flare Monitoring System (FMS), into the platform. Aramco’s Vice President and Chief Engineer, Walid A. Al Naeem, highlighted that the collaboration strengthens both companies’ ambitions to mitigate GHG emissions while fostering talent development within Saudi Arabia. This partnership aims to bring both SLB’s and Aramco’s expertise to the global energy and industrial markets.
Playtime is over. It’s time to scale
Digital technology deployed at scale has created new value across multiple industries. Kari Anne H. Kjolaas-Holland, Senior Vice
President Digital Services & Operations, SLB, asks how can the energy sector reap the rewards?
If you’re like billions of other people around the world, before you get out of bed in the morning, several digital interactions will touch your life: sleep data from your smartwatch, social media notifications, confirmation of your grocery order delivery date, a playlist improvement based on your listening history.
Our world is infused with AI, data, and apps offering immeasurable benefits in better health, increased knowledge, more choice, reduced
costs…the list could go on. In the energy industry, there have been many successful proof-ofconcept projects that show digital’s potential to reduce risks, accelerate returns, and increase productivity while lowering costs and carbon. The industry can legitimately claim to have started its digital journey, yet examples of operators successfully deploying digital at scale are few. Only around one in five technical workers in the industry benefit from modern, cloud-based technology infrastructures.
To reap rewards and derive new value for the energy industry, we need to deploy data and digital workflows that connect the full value chain—subsurface through field development to drilling and production operations, across the global enterprise. The first step is recognizing that collaboration is essential— none of us has all the answers.
Together we can scale
Around the world, climate change, the energy crisis, and the AI revolution are reshaping societies. Organizations face new challenges, but our industry is resilient, and from adversity, we will find new ways to create value for customers. The ability to make good decisions quickly, to adapt and innovate fast, to accelerate workflows, and to streamline operations across global business activities is the new foundation for business success, and it’s delivered by digital transformation.
Talking about scaling digital is easy; achieving it is something else. The energy industry is complex in many ways, and there are multiple important factors to consider: security, system reliability, recovery and backups, compatibility, licensing, compliance, infrastructure, connectivity, support in every geography—24/7, training, culture change, and, of course, technology. Access to
cloud infrastructures in some form, be it global, regional, or local, is vital if we are to bring the power of AI, machine learning, and data solutions to every user, in every asset, in any geography.
Building a digital foundation
It’s simply not economical for a business focused on producing energy to have a complete digital framework across all global regions. Most organizations access these resources by working with other specialist organizations. At SLB, we realized this early on and have obsessed about building the foundation for scaling digital globally.
The pieces SLB delivers itself are considerable. Our global footprint was an early advantage. Thanks to our almost 100-year history, we have, for many decades, had people everywhere. We are familiar with the way every country operates, and this has helped us install a global digital infrastructure our customers can plug into. We focused on delivering in-country value and
developing local talent, supported by an immense R&D commitment to digital. We’ve learned how to become a cloud operation business; we’re talking technology centers, cybersecurity centers with hundreds of dedicated personnel, digital hubs, zonal backups, global customer support 24/7, and INNOVATION FACTORI centers on every continent.
Forging digital partnerships
We’ve pursued and nurtured close partnerships with big tech companies like Microsoft, AWS, and Google, and with growing tech start-ups such as Dataiku, Geminus, and Cognite. We maintained an unwavering commitment to openness from the beginning. These relationships have evolved into a connected global ecosystem of trusted technology partners and customers. Forming key digital partnerships with horizontal technology providers has created an “everyone wins” scenario. Horizontal technology is applicable in multiple industry verticals but needs strong domain knowledge to create value in
the energy industry. For example, incorporating and re-selling Dataiku’s ML Ops toolkit inside the Delfi™ digital platform is giving hundreds of our customers’ data scientists around the world access to a best-in-class set of AI tools. Dataiku continues to maintain and innovate the toolkit, with an extensive R&D budget.
And this is a crucial point of openness. It’s true that none of us has all the answers, and it’s equally true that the answer isn’t the same for all of us. The ability to connect your own and thirdparty digital applications within one platform, and have them work seamlessly together, is how customers create their bespoke digital ecosystem, meeting their specific needs. Dataiku’s ML Ops toolkit is just one example of over 100 third-party applications we host for customers within the Delfi platform. It’s open, so customers can choose the software they want and need, be that SLB, third-party, or their own software. By embracing an ecosystem approach,
operators and solution providers have unfettered access to a plethora of interoperable digital solutions, systems, and platforms. Each of us always has the optimal resources available to produce the best outcomes. Not just during routine planning and operations, but always on hand as unexpected challenges and opportunities arise. By working together, we will co-create the technology infrastructure of the future.
Managing change
To break free from long-established habits, to stay the course in genuinely transformational programs of work, and to be open to those you have historically considered suppliers or competitors, requires a change of mindset. Change management is a core component of digital transformation; it cannot be overlooked or forgotten. The important first step is to have a clear vision and defined targets. Next is to implement a user-adoption strategy, which includes training and goes beyond to consider the impact on user groups’ work and minimize disruption to it. We have found this can sometimes be achieved naturally, as many of our cloud-based solutions are lift-and-shift versions of the on-premises software our customers are familiar with, such as Petrel™ subsurface software and Techlog™ wellbore software; the user experience is similar, but it’s enriched with better data
analytics and faster processing speeds.
Next steps
Understanding the foundation for scaling digital, and knowing the early considerations is a great start. But there’s a lot more to it, especially as the industry works towards sustainability and energy transition. You need to understand and address global cloud operations for scale, the human aspects of scaling, accelerating your progress with AI, the important role of data management, and achieving sustainability at scale. Just to reiterate again, no one company can do this alone; perhaps the most important step in delivering digital at scale is forging partnerships and close working relationships with other organizations.
AI powered by near-limitless cloud computing power can dramatically accelerate the complex modeling, simulations, monitoring, and decisionmaking required for effective planning and operations. Tasks that previously took months can be completed in days or hours. Digital technology deployed at scale will transform our industry, it has already begun. But the digital journey is not simple; there are both hazards and rewards ahead, with new frontiers for us all. By navigating together, we can create a better future for everyone.
Precision in flare measurement paves the way for a sustainable future in the oil and gas industry
Precision in flare measurement is driving sustainability in the oil and gas industry by enabling accurate tracking of methane emissions and optimizing environmental compliance.
MethaneSat, a project spearheaded by the Environmental Defence Fund, is revolutionising monitoring of flaring and general methane leakage by providing high-resolution satellite data. By capturing precise and frequent data, MethaneSat can identify and quantify point emissions sources, or combine measurements in a locality, or even a whole region, enabling anyone oversight and hitherto unprecedented detail on which sites are emitting methane.
Of course, the oil and gas industry is under ever-intensifying environmental scrutiny, with flaring, in particular, coming under critical investigation. As the world grapples with the urgent need to mitigate climate change, the focus on reducing greenhouse gas emissions has sharpened. Flaring not only wastes a valuable energy resource, it contributes significantly to atmospheric pollution, making it a high-priority target for environmental groups and regulators.
Ensuring the transparency, accuracy and reliability of measurement and reporting in this sector has become paramount. Not just for regulatory compliance, but for environmental accountability, and the implementation of effective reduction strategies.
The industry faces growing pressure from governments, environmental organisations, and the public to adopt more sustainable practices. As the push for cleaner energy intensifies, the role of precise data in driving meaningful environmental action cannot be overstated.
Facing tightening EPA regulations
The EPA are planning several significant rule changes to address gas flaring and methane
emissions in the oil and gas sector. In August 2023, the EPA announced a rule that aims to dramatically reduce methane emissions and are backing this up with fiscal muscle. Operators not measuring or meeting the the Net Heating Value requirements of their Flare Gas are no longer able to claim the 98% combustion efficiency which has been a long-time industry assumption. The situation gets worse for operators not continuously measuring their flare gas, or that don’t have continuous monitoring of pilot lights. (40 CFR 98 subpart W)
This is on top of new regulations introducing a phased ban on routine flaring of natural gas from new oil wells, allowing it only in emergencies. Existing wells emitting above 40 tons per year are restricted from flaring unless there are no feasible alternatives or sales lines.
The EPA has also updated the Greenhouse Gas Reporting Program to enhance transparency and accuracy in emissions data. This involves incorporating advanced technologies such as satellite data to identify super-emitters and requiring direct monitoring of key emission sources (US EPA). New criteria and standards for equipment and leak detection have been set, including zeroemissions standards for pneumatic pumps and controllers and specific protocols for addressing methane leaks.
These tightening regulatory changes are all part of the broader US Methane Emissions Reduction Plan, supported by the Inflation Reduction Act, which aims to cut methane emissions across various sectors, including oil and gas. In short, accurate measurement has never been so important.
The technology of measurement
Ultrasonic flare measurement has become the standard for monitoring flare gas. Its ability to address variable gas velocity, composition, density, and sound of speed challenges is unparalleled. Whereas other methods like pressure meters, turbine meters, Coriolis mass flow meters, thermal mass flow meters, and optical flow meters, often struggle with accuracy under dynamic conditions, ultrasonic sensors offer a robust and reliable solution.
Ultrasonic sensors accurately measure the transit time of sound waves through the gas, with an accuracy measured in nanoseconds. Their adaptability allows them to adjust to changes in gas properties continuously without recalibration, ensuring consistent accuracy even during rapid fluctuations.
Furthermore, with the optimum configuration, ultrasonic flare measurement systems are non-intrusive, minimising maintenance needs, operational disruptions and ensuring stability in blow-down scenarios. Their durability and reliability make them suitable for harsh industrial environments where other methods may fall short. As a result, ultrasonic technology is now the preferred choice for flare gas monitoring, ensuring both efficiency and safety in operations.
The challenges associated with using ultrasound
Ironically, carbon dioxide (CO2), a critical gas to measure for assessing the environmental impact of gas flaring, is also one of the hardest to measure accurately when even relatively low concentrations of the gas are present in flare lines.
Measurement of CO2 is difficult due to the gas’s high attenuation of ultrasonic frequencies. The molecular structure of CO2, comprising one
carbon atom and two oxygen atoms, has distinct vibrational modes that actually absorb ultrasonic energy. When ultrasonic waves pass through CO2, the energy can resonate with the CO2 molecules’ natural frequencies, causing significant energy absorption and conversion into internal vibrations.
CO2’s physical properties, such as density and compressibility, further exacerbate the problem of attenuation. These characteristics combine to mean regular ultrasonic meters are all but useless where concentrations of 30% or more are present.
In practice, the high attenuation of CO2 complicates ultrasonic inspection, imaging, and measurement techniques. Addressing this issue requires careful selection of ultrasonic frequencies and potentially employing alternative methods or compensatory techniques to mitigate attenuation effects, ensuring accurate results.
Solving the problem of measuring CO2 in flare
gas opens up the possibility of using the most accurate ultrasonic sensors in a much wider range of applications than is presently the case. When combined with gas composition data, this therefore allows for better optimization of flare efficiency, reducing waste and improving energy use.
A solution to the global flare gas measurement market
In late 2022, FlarePhase transducers from Fluenta were launched aimed at offering a broader operating temperature range compared to other options, but their resistance to extreme temperature fluctuations is just one aspect. There is an unsatisfied demand for ultrasonic measurement systems that can handle processes with much higher CO2 content, and FlarePhase technology offers a significant advantage in this regard.
In many regions, ultrasonic measurement of flare gas is mandated for its accuracy, regardless of gas
composition. However, the presence of high CO2 levels prevents this during certain process scenarios, and so a combination of measurement technologies tends to be used – with all the incumbent costs, drawbacks and maintenance that comes with that.
FlarePhase, a new generation of sensor from Fluenta, operates differently from most ultrasonic transducers. All ultrasonic systems require transmitter and receiver resonant frequencies to be matched to achieve the optimum signal strength. Even slight deviations, which result from inprocess temperature swings, can cause the signal strength to fall off rapidly.
In FlarePhase transducers, Fluenta continuously measure the transducers’ resonant frequencies and adjust the drive signals in real time, so they are always
perfectly matched. This has obvious benefits where temperature swings are commonplace but can also offer transformative performance when dealing with high levels of CO2. Other techniques such as signal amplification, can help a bit, but are marginal when compared with resonance tracking.
A very thorough approach to signal processing enhances the received signal, allowing the time-of-flight measurements to be accurate to nanoseconds, even where the noise-floor would ordinarily bury such tiny signals. This unique approach allows FlarePhase transducers to maintain the highest accuracy even when faced with high CO2-induced signal attenuation.
A well-tested solution
Extensive reference measurements have been conducted at Fluenta’s test facilities in both the Cambridge, UK and a specially constructed facility at IPT in Brazil.
In Cambridge, it was found that in a 12-inch pipe with velocities of around 25ms-1, we could measure with over 94 per cent CO2 (the maximum concentration possible in our in-house flow loop). Further tests at IPT Brazil confirmed stable and accurate flow measurements even with a mixture of 90% CO2 through the 12” spool and 70% CO2 through the 16” spool, in velocities of up to 75ms-1. Enough to confidently lead the pack in high CO2 measurement.
For the tests, ITP Brazil constructed a 20-inch flow loop facility specifically tailored to Fluenta’s needs. This CO2 loop featured pipes with 12 to 20 inches diameters, supporting maximum flows of 16,000 m³/h and varying linear flows depending on the pipe size. The loop included a heat exchanger to stabilise gas temperature, and a realtime analyser and a gas chromatograph verified the CO2/air mixtures up to 99 per cent CO2.
Hydrogen and the Energy Transition
The Association of International Energy Negotiators (AIEN) has made significant strides in the hydrogen sector over the past year. With the establishment of the Hydrogen Taskforce at the end of 2022 and two specific Hydrogen Drafting Committees in 2024, AIEN has been instrumental in developing frameworks and agreements essential for the growth and success of the hydrogen industry.
Hydrogen has been produced from methane for many years and has become one of the key focuses for energy transition. Production from methane does not tackle carbon emissions and companies are looking for ways to increase the volumes of hydrogen produced from renewables or other low-carbon emission sources. There is a whole rainbow of colors associated with hydrogen, reflecting its technology and feedstock as well as the associated carbon footprint, from ‘black hydrogen’ produced from coal with carbon emissions, through ‘grey’ (carbon emissions) and ‘blue’ (carbon captured), using steam reforming from natural gas to ‘green hydrogen’ produced via electrolysis powered from renewable electricity sources.
New additions may lie ahead, like ‘turquoise hydrogen’ (methane split into hydrogen and solid carbon through pyrolysis) and ‘white hydrogen’ (which already exists in natural form and whose potential is yet to be uncovered). However, Zoë Bromage, co-chair of one of the newly established Hydrogen Drafting Committees notes, “as the hydrogen economy develops we are seeing less focus on the method of production of hydrogen and more attention being paid to the carbon intensity associated with such production, with lowcarbon hydrogen the focus of new regulatory developments, global procurement strategies and critically the financial incentives for project developments and offtakers”.
One of the biggest challenges of creating a green or low-carbon hydrogen economy is to overcome the inertia required to get the ball rolling. Legislation and regulations are still developing, and contracts and clauses will vary from archetypical oil & gas contracts. How projects are financed is one major hurdle. The Hydrogen Taskforce was established to help AIEN members fill knowledge gaps, define key deliverables, such as model contracts and clauses, with the objective of accelerating the development of low-carbon hydrogen projects.
In 2023, AIEN’s Hydrogen Taskforce, led by experienced professionals from various
energy sectors, made notable progress. One of the primary accomplishments was the development of a hydrogen (and its derivatives) offtake term sheet. This foundational document is crucial to facilitating transaction discussions and ensuring clarity and security in hydrogen trading. Zoë Bromage, explains the thought process behind the AIEN’s Hydrogen Taskforce’s decision to start with a term sheet, which represented a departure from AIEN’s traditional approach to developing model contracts, “we were keenly aware that low-carbon hydrogen stakeholders were asking for industry templates to facilitate discussions and allow them to accelerate their project, we felt that developing a longform term sheet start allowed us to meet this request and set the framework for the definitive long-form offtake agreement”.
Additionally, AIEN identified the need for a standardized Hydrogen Joint Development & Operating Agreement (Hydrogen JDOA) to support large-scale hydrogen projects. Gonzalo Cabrera, a key member of the Hydrogen Taskforce and now co-chairing the Hydrogen JDOA drafting committee, explains “we are designing these agreements to streamline cooperation among stakeholders, mitigate risks, and enhance the efficiency of project execution”. By the end of 2023, the market’s demand for these agreements became evident, highlighting AIEN’s foresight and proactive approach. Gonzalo elaborates, “the successful development of the hydrogen industry depends heavily on effective collaboration among diverse stakeholders. This is where a standardized Hydrogen Joint Development and Operating Agreement becomes essential.”
AIEN’s efforts also included a comprehensive analysis of the hydrogen value chain, identifying 13 different potential agreements necessary for a fully operational hydrogen economy. The Taskforce prioritized the hydrogen offtake agreement and the Hydrogen JDOA based on industry needs and established two drafting committees to focus on the development of these agreementssetting the stage for their development and implementation.
The AIEN’s hydrogen drafting committees aim to develop a jurisdiction and technology agnostic Hydrogen JDOA and Hydrogen Offtake Agreement model contracts that incorporates insights from various legal traditions. Gonzalo emphasizes, “Our objective is to create a jurisdiction-agnostic template taking elements from various legal traditions. We will place significant value on input not only from legal practitioners but also from commercial negotiators.” Zoë adds, “technology-agnostic templates are essential to ensure the model forms are fit for purpose and widely adopted by the industry, which are a hallmark of AIEN model contracts”.
Furthermore, AIEN plans to expand its reach and influence by fostering collaboration among diverse stakeholders, including governments, private companies, and research institutions. Zoë notes that the hydrogen drafting committees are already
benefiting from this expanded focus, as their composition consists of participants from all aspects of the low-carbon hydrogen economy including those who have not traditionally been members of the AIEN. This collaborative approach is essential for attracting investment and fostering trust, ultimately accelerating the pace of hydrogen project development.
The Role of Hydrogen in the Energy Transition
Hydrogen is poised to play a pivotal role in the global energy transition. As a versatile and clean energy carrier, hydrogen has the potential to decarbonize various sectors, including transportation, industry, and power generation. The International Energy Agency’s Global Hydrogen Review 2023 estimates that the current pipeline of announced projects for lowemission hydrogen production could reach up to 38 million tonnes by 2030, aligning well with global production targets.
However, there is a significant imbalance between the ambitious demand for low-emission hydrogen and its supply. Only 4% of announced projects have reached the Final Investment Decision (FID) stage. Therefore, the next few years will be crucial in bridging this gap and ensuring the successful deployment of hydrogen technologies. Gonzalo points out, “The years 2024 and 2025 are anticipated to be critical for filtering out speculative projects.” Zoë adds that “2024 has been marked by significant developments, including a recent milestone where the backers of a major green hydrogen project in Egypt signed a binding long-term offtake agreement for EU-compliant green hydrogen and ammonia e-fuel. This agreement was secured with a key industry player, which has also received the first funding support from the German government under its pilot H2Global import scheme”.
AIEN’s efforts in developing standardized agreements and fostering collaboration are critical in this context and to the future development of the hydrogen industry. By
providing clear frameworks for joint ventures and operating agreements and offtake agreements, AIEN is helping to reduce uncertainties and facilitate the rapid growth of the hydrogen economy. Zoë and Gonzalo note, “The development of a standardized Hydrogen Offtake Agreement and a Joint Development and Operating Agreement are crucial for the hydrogen industry’s growth.”
As the hydrogen sector continues to evolve, AIEN’s efforts of continuously refining these agreements and incorporating insights from various stakeholders will be instrumental in accelerating the energy transition and ensuring a sustainable future.
The association’s proactive approach and dedication to the energy transition highlight the importance of hydrogen in achieving global decarbonization goals. Gonzalo aptly summarizes, “We need to accelerate the pace at which we produce hydrogen, and in many cases, we need to guide the industry to minimize the risks that they will face.”
Manifa Bay: A Blueprint for Sustainable Oil Production and Technological Innovation
Saudi Aramco’s Manifa Bay project combines cutting-edge technology with environmental stewardship, setting a new standard for sustainable oil production in the global energy industry
The Manifa Bay project represents a groundbreaking achievement in oil production and environmental stewardship, executed by Saudi Aramco. Discovered in 1957, the Manifa oil field lay dormant for several decades until its redevelopment was launched in 2007. This ambitious program aimed to produce 900,000 barrels per day (bpd) of Arabian Heavy crude oil, and it has since grown into one of the most significant hydrocarbon projects globally.
Manifa’s success stems from its innovative approach to oil extraction and commitment to minimizing its environmental impact. The project stands out for its creation of 27 man-made islands linked by a 41-kilometer causeway, which transformed the offshore oil field into a more accessible and operationally efficient environment. By converting over 70% of the field to a semi-onshore setup, Saudi Aramco reduced costs and limited environmental disruption, making Manifa a model for sustainable oil production.
Central to this transformation is the advanced technology employed in both the construction and operation of the Manifa Bay facility. Saudi Aramco’s development program incorporated cutting-edge systems, including cogeneration plants that produce 420 megawatts of electricity alongside steam, making the facility energy self-sufficient. This technological sophistication enabled the project to maintain zero gas flaring, a significant environmental achievement. Additionally, the innovative use of Nuclear Magnetic Resonance (NMR) tools for well placement, combined with the longest cemented liner used in well intervention, highlights the project’s leadership in applying new technologies to optimize performance and sustainability.
The environmental aspect of the Manifa project is particularly noteworthy. Saudi Aramco went to great lengths to preserve the rich marine ecosystem of Manifa Bay, home to species such as pearl oysters, dolphins, and the endangered Hawksbill turtle. Extensive studies were conducted to minimize the environmental footprint, and the causeways and drilling islands were strategically positioned to maintain water circulation and protect marine life. These efforts illustrate Saudi Aramco’s commitment to environmental stewardship while meeting the world’s energy demands.
In terms of economic impact, the Manifa Bay development has been a substantial boon
to both the local and national economy. The project has created thousands of direct and indirect jobs, benefiting various sectors across Saudi Arabia. In addition to supplying crude oil to major refineries such as SATORP and YASREF, the Manifa facility has also played a role in training and developing the local workforce. Over 80% of the employees at Manifa were new hires, including young Saudi engineers and technicians trained in the latest technologies.
The global economic crisis of 2008 posed significant challenges for the Manifa project, leading to a temporary freeze on procurement and capital expenditures. However, Saudi Aramco demonstrated resilience by renegotiating contracts and collaborating with contractors to reduce costs while maintaining progress. This strategy not only kept the project on track but also resulted in cost savings of over $1.7 billion.
As the project reaches its full production capacity, the Manifa Bay development stands as a testament to Saudi Aramco’s vision of balancing economic growth with environmental responsibility. The lessons learned from this project continue to influence future oil and gas developments, ensuring that energy production can coexist with efforts to preserve the planet’s natural resources.
In conclusion, the Manifa Bay project is a shining example of how the oil industry can evolve to meet the dual challenges of increasing global demand for energy and the imperative to protect the environment. Through its innovative design, use of advanced technologies, and commitment to environmental stewardship, Saudi Aramco has set a new standard for sustainable oil production, one that other industries will likely follow for years to come.
Embedding Sustainability in Business
How Saudi Arabia’s Vision 2030 and the UAE’s Energy Strategy 2050 are shaping national oil companies
The Middle East, a region traditionally synonymous with oil and gas, is undergoing a profound transformation. Countries like Saudi Arabia and the United Arab Emirates (UAE) are reimagining their energy sectors, driving economic diversification, and embracing sustainability. At the heart of these efforts are the national oil companies (NOCs), which have long been the bedrock of these economies. Through initiatives like Saudi Arabia’s Vision 2030 and the UAE’s Energy Strategy 2050, NOCs are embedding sustainability into their business strategies to ensure long-term relevance in a rapidly evolving global energy landscape.
Saudi Arabia’s Vision 2030: Paving the Way for Sustainability
Saudi Arabia’s Vision 2030 is a comprehensive plan aimed at diversifying the country’s economy, reducing its dependence on oil, and positioning the Kingdom as a global leader in sustainability. For Saudi Aramco, the world’s largest oil company, this vision has provided a framework to integrate sustainability into its core operations and business strategies.
Diversifying energy sources
Vision 2030 emphasizes the importance of reducing the Kingdom’s reliance on oil by investing in renewable energy and alternative fuels. Saudi Aramco has aligned its strategy with this objective by investing heavily in solar, wind, and hydrogen technologies. The company is a key player in the development of the Kingdom’s renewable energy sector, aiming to meet domestic and international energy demands with cleaner alternatives.
Saudi Aramco’s recent efforts in green hydrogen production are a testament to this shift. The company is actively exploring hydrogen as a future energy carrier, aligning with global trends that see hydrogen as crucial to decarbonizing hard-to-abate sectors like shipping and aviation. The NEOM Green Hydrogen Project, in which Saudi Aramco plays a pivotal role, is set to be one of the world’s largest hydrogen plants, producing carbon-free hydrogen using solar and wind energy.
Carbon management and emissions reduction
Sustainability in oil and gas also means reducing carbon footprints. Saudi Aramco has been at the forefront of developing technologies to capture and store carbon emissions. The company’s carbon capture, utilization, and storage (CCUS) initiatives are an integral part of its strategy to lower greenhouse gas
emissions and contribute to the global effort to mitigate climate change.
One of the major projects in this regard is the Uthmaniyah Carbon Capture and Storage Project, which captures up to 800,000 tons of CO2 annually from natural gas production. This CO2 is then injected into oil reservoirs to enhance oil recovery, simultaneously reducing emissions and increasing production efficiency.
Innovation and Digital Transformation
To achieve Vision 2030’s sustainability goals, Saudi Aramco is leveraging digital technologies to optimize its operations and reduce environmental impacts. The company has embraced digital twins, artificial intelligence (AI), and big data to monitor and improve operational efficiency while minimizing energy consumption and emissions. These innovations are key to enhancing oil recovery and ensuring the longevity of the Kingdom’s oil reserves in an environmentally responsible way.
UAE’s Energy Strategy 2050: A sustainable future for energy
The UAE’s Energy Strategy 2050 is the country’s long-term blueprint for balancing energy needs with environmental sustainability. Aimed at reducing the country’s reliance on fossil fuels and increasing the share of clean energy in the energy mix, the strategy sets ambitious goals, such as generating 50% of its energy from renewable sources by 2050. The UAE’s national oil company, Abu Dhabi National Oil Company (ADNOC), has embraced this strategy and is playing a crucial role in driving the country’s transition toward sustainability.
Renewable energy integration
ADNOC has shifted its focus from being a traditional oil company to an integrated energy player that supports the UAE’s diversification efforts. The company has invested in solar and nuclear energy to supplement its oil and gas operations. A standout project is the Al Dhafra Solar PV Plant, which, once completed, will be one of the world’s largest single-site solar power plants, generating enough electricity to power hundreds of thousands of homes.
By incorporating renewables into its operations,
ADNOC aims to lower its carbon intensity and contribute to the UAE’s broader goals of reducing carbon emissions and achieving net-zero targets by 2050. The company is also working on various clean energy projects, such as developing blue hydrogen, which is produced from natural gas with carbon capture technology, further reinforcing its commitment to sustainability.
Efficiency and emissions reduction
ADNOC’s sustainability strategy focuses on reducing the environmental impact of its operations. The company has implemented advanced technologies to enhance energy efficiency and minimize waste. One of its flagship projects is the Al Reyadah Carbon Capture, Utilization, and Storage (CCUS) facility, which captures 800,000 tons of CO2 annually, much of which is used for enhanced oil recovery. This project is critical in helping ADNOC achieve its goal of reducing its greenhouse gas intensity by 25% by 2030.
ADNOC’s Zero Routine Flaring Policy is another key initiative aligned with the UAE’s Energy Strategy 2050. By using advanced technologies to capture and utilize gas that would otherwise be flared, ADNOC is reducing methane emissions and improving operational efficiency, directly contributing to the UAE’s goals of becoming a low-carbon economy.
Digital transformation for sustainability
ADNOC has made substantial investments in digital transformation as part of its sustainability agenda. The company’s use of AI, machine learning, and data analytics is helping optimize drilling operations, enhance reservoir management, and reduce energy consumption. ADNOC’s Panorama Digital Command Center is a cutting-edge facility that integrates real-time data from across its operations, allowing for more efficient decision-making and reducing the environmental impact of its activities.
Moreover, ADNOC’s partnership with Masdar, a UAE-based clean energy company, underscores its commitment to advancing sustainable energy projects. Together, they are exploring the potential for expanding renewable energy projects and integrating them into the UAE’s energy infrastructure.
Collaborative efforts and a vision for the future
Both Saudi Arabia and the UAE recognize that collaboration is crucial to achieving their sustainability goals. Saudi Aramco and ADNOC, along with other regional NOCs, have been actively participating in global sustainability initiatives such as the Oil and Gas Climate Initiative (OGCI), which seeks to accelerate the industry’s response to climate change by investing in innovative technologies for reducing carbon emissions.
The two countries are also heavily involved in international climate negotiations, positioning themselves as leaders in the transition to a sustainable energy future. Their national oil companies are not only focused on reducing their own carbon footprints but are also shaping global trends through technological innovation, investment in renewables, and participation in carbon markets.
Sustainability at the core
Saudi Arabia’s Vision 2030 and the UAE’s Energy Strategy 2050 illustrate how NOCs are no longer just fossil fuel producers—they are becoming integrated energy companies committed to sustainability. By investing in renewable energy, developing carbon capture technologies, and embracing digital innovation, Saudi Aramco and ADNOC are embedding sustainability at the core of their business strategies. As the global energy landscape continues to shift toward cleaner alternatives, these NOCs are positioning themselves as leaders in the energy transition, balancing economic growth with environmental responsibility. Their efforts not only safeguard their future relevance but also contribute to a more sustainable global energy system.
Digital Innovation: A Catalyst for the Middle East Oil and Gas Industry’s Future
Digital innovation is transforming the Middle East’s oil and gas sector, enhancing operational efficiency, safety, and sustainability while driving progress toward a more diversified energy future
The Middle East, long recognized as the global epicenter of oil and gas production, is embracing a new era of digital transformation. In a sector historically defined by traditional methods and immense physical infrastructure, the rise of digital technologies such as artificial intelligence (AI), digital twins, cloud computing, and the Internet of Things (IoT) is reshaping the industry. As regional economies push for greater efficiency, sustainability, and competitiveness, digital innovation stands out as a key enabler for achieving these goals.
In recent years, the oil and gas sector has faced increasing pressure from fluctuating market dynamics, tightening regulations, and a global drive toward decarbonization. Digital transformation offers solutions to these challenges, providing the tools to optimize operations, reduce costs, and ensure safety while supporting the energy transition.
Unlocking operational efficiency
One of the most significant benefits of digital innovation is its potential to optimize operations. In a region where energy resources are abundant, the ability to extract and process hydrocarbons more efficiently can yield considerable financial
and environmental benefits. For example, technologies like predictive maintenance, powered by AI and machine learning, are transforming the way companies approach asset management.
By analyzing vast amounts of data from sensors embedded in machinery and infrastructure, AI systems can predict when equipment is likely to fail, allowing operators to intervene before costly breakdowns occur. This shift from reactive to predictive maintenance not only reduces downtime but also extends the lifespan of critical assets, ensuring that operations run smoothly and more efficiently.
Digital twins, virtual replicas of physical assets, are another innovation gaining traction in the region. These digital models allow operators to simulate real-world conditions and anticipate potential issues before they arise. For Middle Eastern refineries and petrochemical plants, which operate under extreme environmental conditions, digital twins provide critical insights into optimizing performance and reducing emissions. By integrating real-time data with AI-driven simulations, companies can make more informed decisions, improve safety protocols, and boost
productivity.
Enhancing Safety and Environmental Stewardship
Safety has always been a top priority in the oil and gas industry, particularly in the Middle East, where operations are often situated in harsh and remote environments. Digital innovation is playing a crucial role in enhancing safety by leveraging advanced analytics and automation technologies.
IoT-enabled sensors can continuously monitor temperature, pressure, and gas leaks in pipelines and refineries, alerting operators to potential hazards in real-time. AI algorithms then analyze this data to detect anomalies and automatically shut down operations if necessary, preventing accidents before they occur. This proactive approach to safety management reduces the risk of human error and ensures that assets are protected from damage.
Furthermore, digital solutions are helping Middle Eastern oil and gas companies address growing environmental concerns. With global calls for more sustainable energy practices, reducing carbon emissions is high on the agenda.
Advanced analytics and AI can optimize energy consumption, minimize flaring, and enhance the overall efficiency of refinery processes. By tracking emissions data and identifying areas where energy use can be reduced, companies can make meaningful progress toward achieving their sustainability goals.
In addition, the use of drones and robotics in oilfield inspections is cutting down on the need for human personnel to work in hazardous environments, further enhancing safety while minimizing the environmental footprint of these operations.
Supporting the energy transition
While oil and gas remain integral to the Middle East’s economy, regional governments are increasingly focusing on diversification and the energy transition. Saudi Arabia’s Vision
2030 and the UAE’s Energy Strategy 2050 are examples of ambitious plans to reduce reliance on hydrocarbons and invest in renewable energy. Digital innovation will play a pivotal role in driving this transformation.
AI and digital platforms enable better integration of renewable energy sources like solar and wind into the energy mix, creating a more balanced and sustainable energy ecosystem. The region’s abundant solar resources make it an ideal testing ground for combining traditional fossil fuel production with renewable energy in hybrid models. Digital solutions also help optimize the management of these energy resources, ensuring the most efficient use of both conventional and renewable assets.
As the global energy landscape continues to evolve, the Middle East’s oil and gas sector can remain competitive by embracing digital transformation.
Companies that invest in innovative technologies will not only enhance operational efficiency but also contribute to the broader goals of sustainability and energy diversification. In a world that is rapidly moving toward decarbonization, digital innovation is no longer just an option — it is essential for the future of the Middle East’s oil and gas industry.
Diversification crucial to long term success
Digital innovation is revolutionizing the Middle East’s oil and gas sector, driving efficiency, safety, and sustainability. By leveraging AI, digital twins, IoT, and predictive analytics, companies in the region can overcome operational challenges, meet environmental targets, and contribute to the global energy transition. As the region continues to diversify its energy portfolio, embracing these technologies will be critical to securing long-term success in a changing world.
Oil and gas industry urged to accelerate carbon capture deployment in response to climate change
As the urgency of the global climate crisis intensifies, oil and gas operators are called upon to accelerate the development and deployment of Carbon Capture, Utilization, and Storage (CCUS) technologies, crucial for reducing greenhouse gas emissions and achieving net-zero goals.
The oil and gas industry is at a pivotal moment in the global effort to combat climate change. As one of the largest contributors to global carbon dioxide emissions, the sector must urgently develop and deploy Carbon Capture, Utilization, and Storage (CCUS) technologies to address these emissions effectively. The increasing consensus on the urgency of climate change has highlighted CCUS as a critical pathway for reducing greenhouse gases from fossil fuel sources and achieving the ambitious target of net-zero emissions by mid-century.
CCUS technologies play a vital role in capturing carbon dioxide emissions at their source, such as power plants, refineries, and industrial facilities, then transporting the captured CO2 to secure storage sites. These storage sites, typically deep geological formations like depleted oil fields or saline aquifers, provide long-term solutions for carbon storage, preventing emissions from entering the atmosphere. The integration of CCUS within oil and gas operations is particularly pertinent given the sector’s dual role in fossil fuel production and refining, which both contribute significantly to greenhouse gas emissions.
The need to overcome a significant carbon footprint
The need to deploy CCUS is underscored by the oil and gas industry’s substantial carbon footprint. As climate change impacts become more evident and demand for sustainable practices grows, CCUS offers a practical approach for oil and gas operators to align with
global sustainability goals. By capturing CO2 emissions and securely storing them underground, oil and gas companies can substantially reduce their environmental impact while continuing to meet the world’s energy needs. This becomes especially crucial as global energy demand remains high, and a transition to more sustainable energy sources is imperative to limit the long-term effects of climate change.
CCUS comprises three primary processes: capturing carbon dioxide emissions at their point of origin, transporting the captured CO2 to a designated storage location, and safely storing it underground. These processes can be applied across various industrial sectors, but they hold particular relevance for the oil and gas industry. By implementing CCUS, oil and gas companies can capture CO2 from key emission sources, such as power generation plants, refining units, and chemical manufacturing sites.
This CO2 is then transported via pipelines to storage locations, where it is injected into geological formations like depleted oil and gas reservoirs or deep saline aquifers for permanent storage.
One of the key benefits of CCUS is its ability to significantly reduce the carbon footprint associated with fossil fuel production and consumption. As the world continues to rely on fossil fuels for a considerable portion of its energy needs, CCUS provides a viable means to mitigate the environmental impact of these fuels.
This technology also offers economic advantages through its integration with enhanced oil recovery (EOR) techniques, in which the injected CO2 aids in extracting additional oil from mature reservoirs. This additional oil production helps offset the costs of CCUS deployment, making it a more attractive option for oil and gas operators seeking both environmental and economic benefits.
A use case for hard to abate industries CCUS holds substantial potential for decarbonizing other hard-to-abate industrial sectors, such as cement, steel, and chemical production. These industries are inherently carbon-intensive, and their emissions pose a significant challenge to achieving net-zero goals. By capturing and storing CO2 emissions from these sectors, CCUS contributes to a broader strategy for industrial decarbonization. This is particularly important given that these industries are essential to the global economy and are unlikely to be phased out entirely in the foreseeable future.
Beyond its environmental advantages, CCUS also presents new economic opportunities. The development and deployment of CCUS technologies necessitate substantial investment in research, infrastructure, and innovation. This can drive job creation and economic growth, particularly in regions with a strong oil and gas presence. The required infrastructure for CCUS, such as pipelines and storage facilities, represents a significant capital investment, further contributing to economic activity and regional development.
Challenges to be overcome
Despite these clear benefits, the
widespread adoption of CCUS faces significant challenges. One of the most prominent barriers is the high cost associated with capturing and storing carbon dioxide. Deploying CCUS at scale requires substantial upfront investment, and the economic feasibility of such projects depends heavily on market conditions and supportive policy frameworks. To overcome these barriers, governments must implement policies that provide incentives for CCUS deployment, such as carbon pricing mechanisms, tax credits, and direct subsidies. Such measures can help mitigate the costs and encourage investment in CCUS projects by making them more economically viable for oil and gas operators.
Regulatory and legal frameworks also play a crucial role in enabling the safe and effective deployment of CCUS. These frameworks must ensure the security of CO2 storage sites, preventing leaks and potential environmental contamination. Establishing regulatory certainty is vital to building public confidence in CCUS projects and attracting long-term investments. Governments and industry stakeholders must collaborate to create comprehensive regulations that address safety, environmental impact, and operational standards while facilitating the deployment of CCUS technologies on a broad scale.
Public perception and acceptance are additional factors that will determine the success of CCUS. Increasing awareness and understanding of the benefits of CCUS among the general public and policymakers is essential. By effectively communicating the role of CCUS in achieving climate goals and emphasizing its safety and efficacy, stakeholders can address common misconceptions and gain broader acceptance. Demonstrating transparency and providing evidence of successful CCUS projects are essential to building public trust and overcoming potential resistance.
An critical need for CCS
The urgency of developing and deploying CCUS technologies by oil and gas operators cannot be overstated. As the world continues to grapple with the effects of climate change, CCUS represents a practical and effective solution to reducing greenhouse gas emissions from fossil fuel sources. By integrating CCUS into their operations, oil and gas companies can not only significantly reduce their carbon footprint but also contribute to the decarbonization of other industrial sectors and unlock new economic opportunities. However, achieving widespread deployment requires coordinated efforts from governments, industry leaders, and the public. With the right policy frameworks, regulatory measures, and public support, CCUS can become a cornerstone of a sustainable energy future, enabling the oil and gas industry to play a pivotal role in combating climate change.
Closed Loop AI Optimization: Revolutionizing Industrial Efficiency and Unlocking New Opportunities
Closed Loop AI Optimization is revolutionizing industrial efficiency by harnessing advanced AI to streamline decision-making, enhance margins, and drive sustainability in sectors facing complex operational challenges
The industrial sector is undergoing a seismic shift as artificial intelligence (AI) begins to play a more critical role in optimizing complex operations. Traditional methods of process optimization, such as Advanced Process Control (APC), have long served the industry, but their limitations are becoming more apparent in the face of evolving market demands and operational complexities. Enter Closed Loop AI Optimization (AIO), a new category from ARC Advisory Group, pioneered by Imubit, which leverages advanced AI to tackle challenges that previous technologies have struggled to overcome. This announcement comes at a critical moment when industries, especially refineries and chemical plants, are searching for more innovative and efficient solutions to drive operational excellence. The introduction of this category is set to change the landscape of industrial operations by significantly enhancing decision-making processes, improving margins, and reducing energy consumption.
Peter Reynolds, an industry analyst at ARC Advisory Group, captured the essence of this shift by stating, “While APC and first principles approaches solve part of the optimization challenge, they do not solve the greater opportunity alone. Imubit’s approach represents a significant leap forward, driving the creation of this new category.” His perspective speaks directly to the evolving demands of industrial optimization, where traditional methods alone no longer suffice in handling the complexities of modern operations.
The Power of Closed Loop AI Optimization
Imubit’s Optimizing Brain Solution is already transforming operations globally, with over
90 industrial applications proving the power of Reinforcement Learning in industrial settings. Early adopters, such as Marathon Petroleum Corporation and Delek, have witnessed firsthand how Closed Loop AIO technology is improving refinery margins by reducing giveaway, a critical concern in the refining industry. These successes highlight the profound impact of AI-driven solutions in real-world applications, where traditional methods are increasingly outpaced by AI’s ability to manage vast and fluctuating data streams.
Unlike earlier methods, Imubit’s Closed Loop AIO unites technical teams around a single model, democratizing AI and simplifying complex decision-making. Engineers and operators, who were previously bogged down by time-consuming manual processes, now have a tool that processes immense amounts of data in realtime. This not only boosts margins, with some refineries reporting up to $0.50 per barrel in improvements, but also helps cut energy consumption by 20%, making operations more sustainable.
Gil Cohen, CEO and co-founder of Imubit, explains, “Imubit’s Reinforcement Learning technology is solving the most complex challenges in process manufacturing. ARC is recognizing that a new
approach is required to align operators and engineers around a single model to enable a shared optimization language.” This underscores the importance of a unified framework in industrial settings, where disparate teams and fragmented data have often led to inefficiencies and missed opportunities.
Why the Industry Needs a New Category
The creation of the Closed Loop AIO category acknowledges a key fact: traditional approaches like Advanced Process Control (APC) can no longer address the growing complexity of industrial systems on their own. Refineries and chemical plants, often described as “complex, volatile laboratories,” deal with fluctuating feedstocks and market demands. The parameters that engineers must monitor and adjust are ever-changing, making traditional modelbased control methods cumbersome and increasingly obsolete.
Closed Loop AIO allows for continuous learning and real-time adaptation, something that older technologies simply cannot achieve. By automating complex decision-making processes and handling vast amounts of data, this new technology not only frees up engineers to focus on higher-value tasks but also optimizes industrial performance in ways previously thought impossible.
What’s Next for Closed Loop AI Optimization?
Closed Loop AIO is poised to become a dominant force in industrial sectors, and its importance cannot be overstated. This technology is democratizing AI, making it accessible and understandable to engineers and operators alike. By breaking down the silos of data and team specialization, it fosters collaboration and enables a more holistic approach to optimization.
As industries continue to face mounting pressures to improve efficiency, reduce emissions, and meet sustainability targets,
the role of AI in these sectors will only grow. The recognition of Closed Loop AIO as a distinct category signifies a pivotal moment in this evolution. Companies like Imubit are leading the charge, not just by providing innovative technology, but by fundamentally redefining how industries approach optimization.
As more companies adopt Closed Loop AIO, we can expect to see significant advancements in efficiency, sustainability, and profitability across the board. By embracing Closed Loop AI Optimization, industrial sectors are not only keeping up with technological advancements but are also setting new benchmarks for operational excellence in a rapidly changing world.
Transforming the Future of Work in Energy: From Buzz to Business-as-usual?
Often hailed as the harbinger of revolutionary change, AI has ridden a wave of hype and fascination. Few trends have captured as much attention and speculation, yet beyond the buzz, AI is starting to become entrenched in real-world applications – and this time, it’s more than just business as usual.
AI and its compatriots—including natural language processing (NLP), large language models (LLM), hybrid machine learning (ML), and generative AI—comprise a formidable team of transformational technologies.
Within the broader energy industry, the possibilities are endless: Faster, more reliable data processing and verification, with more sophisticated data-sharing infrastructures
• Connected data sources as a foundation for accelerated innovation and collaboration
Increased autonomy and automated services in operations and maintenance
Integrated physics-based and datadriven digital twin models that together with AI augment human decisionmaking
Improved asset performance management and reliability for plants from upstream to downstream
• Bi-directional data flows between systems and equipment, with Generative AI enhancing interaction to increase situational and operational awareness
Supply chain transparency and traceability across the energy value chain
Predictive analytics for improved energy efficiency
When we look at the value that can be extracted from a transformed digital strategy driven by AI, it’s easy to envision the short- and long-term benefits that are sure to follow – faster information flows and data processing, less risk, improved communication and accelerated automation. What’s difficult is identifying the path to push past the buzz and embed these sophisticated technologies into future ways of working in a way that makes sense for the industry. How will AI fit in as part of day-to-day operational processes?
It’s not just about data and dashboards
We’ve heard it before: what matters most is not the data you have but how you use that data. Data standards are an important part of our digital future, enabling companies to collaborate and co-innovate through system interfaces that integrate in the back end. Many progressive companies have put in place a solid data infrastructure and added select applications like a digital twin on top, making data more contextualised and accessible through simplified dashboards that make data easy to find, filter and apply. However, data and dashboards are not enough of a springboard for AI to have the measurable value or ROI that companies expect. Instead, we need to start with a value-focused approach that zooms in on the specific use cases and services where AI can have the most influence through a digital operating model that builds on digital twin technology backed by physics-based and data-driven models. The successful implementation of an AI-infused digital strategy needs to be driven by desired business outcomes.
Driving transformation with a value-focused approach
The ability to identify the areas where AI can evolve into more than business as usual requires a degree of familiarity with today’s complex energy landscape. As a technology provider with domain and technical expertise, we can point to areas where we see the biggest potential for the industry:
• Safety Operations and Maintenance
• Performance Monitoring
Supply Chain Management
Design and Engineering
• Emissions Management
Once specific services within these potential impact areas have been identified – typically those that occur frequently and thus create identifiable, repeatable data patterns that can be used for learning and incremental automation – it becomes easier to understand how AI and its cohorts can be used to build out value-driven applications that extract information, process it and provide informed recommendations for actionable items that can be executed independently to contribute to overall improved energy efficiency. Beyond the buzz, it’s important to keep humans at the center of work but augmented by technology that is agnostic to different data types and sources. That way, technology is a supporting function that puts the right information – not too much, and not too little, just what’s necessary – in front of the right
user to enable decision-making at a faster pace, with lower risk. The cascading effects can be exponential depending on the use case, leading to everything from minimized emissions to earlier intervention on predicted maintenance failures.
A glimpse into the AI-driven future of energy operations
Let’s take the example of an emissions management workflow for methane emissions.
Imagine an emissions reduction team manages 10 assets for a large E&P company, monitoring these facilities continuously to trend both the individual and overall carbon footprint of operations.
Their primary work tool: a cloud-based dynamic digital twin, where they can access an emissions management cockpit that has been configured to show the biggest energy consumers at any given time. More than just dashboards, this cockpit shows not only where there are trends towards heightened consumption but also critical incidents that need intervention, along with recommended courses of action based on continuous real-time data feeds and informed by historical and synthetic data.
The cockpit shows a main gas turbine in one of the facilities that is consuming more energy than it should, increasing the asset’s overall carbon score. An investigation kicks off, and the team dives into the data available in the twin. Using a built-in AIpowered chat function, they make a few queries to locate the correct information in just a few clicks. Armed with these insights, they fly to different locations virtually, looking at the flare stack or vents to identify the troublesome consumer.
Data flows back and forth behind the scenes, masking the complexity of these queries. The team investigates the simulator view, seeing simulated versus actual values to get prescriptions on where to intervene. With these prescriptive outputs, they have exactly what they need: instructions on what to do and the reasoning for why.
Transforming the future of work in energy
Data turns to insights, insights turn to actions, actions turn to outcomes, and outcomes turn to prescriptive tasks that the team can execute with full transparency into the reasoning process – for almost any use case driven by business needs and expected value-based outcomes. Some customers are already starting this journey. It’s better than business as usual.
Navigating the Future of Energy with AI and Digital Twins
The integration of digital twins and AI is transforming the energy sector, offering unprecedented operational insights and paving the way for enhanced efficiency, safety, and sustainability as Wassim Ghadban, VP, Global Innovation & Digital Engineering, Kent, explains
The energy sector is witnessing a profound transformation, driven by the integration of digital twins and artificial intelligence (AI). As industries increasingly focus on optimising operations, reducing costs, and improving safety, the combination of these technologies is proving to be essential. This article explores how digital twins have evolved from mere digital replicas of physical assets to intelligent systems powered by AI, offering unprecedented insights and operational capabilities.
The Evolution of Digital Twins
Digital twins began as virtual models of physical assets, designed to mirror the real-world performance of equipment and infrastructure. In the energy sector, these digital models have been instrumental in project execution, from design and construction to operations and maintenance. Initially, digital twins were used for 4D and 5D simulations, offering insights into how assets would perform under different conditions.
Today, digital twins have evolved to 8D models, offering a comprehensive view across an asset’s lifecycle. These twins integrate multiple data points, including operational performance, maintenance history, and external environmental factors. At Kent, our 8D Digital Twin model goes beyond traditional simulations, enabling engineers and operators to simulate real-time scenarios and predict future performance. This capability not only enhances decision-making but also optimises operations in ways previously unimaginable.
Conversational AI for Intelligent Insights
AI has added a new dimension to digital twins by enabling smarter, data-driven insights. The integration of conversational AI allows digital twins to act as virtual operators, providing real-time monitoring, predictive analytics, and even autonomous operations. Imagine an AI-driven digital twin capable of remotely operating a plant, continuously analysing data to predict equipment failures, and making adjustments autonomously to optimise performance.
Incorporating AI in digital twins offers significant benefits, such as predictive maintenance, enhanced safety, and operational efficiency. By layering AI onto digital twins, we enable real-time data analysis, allowing organisations to respond to potential issues before they become critical. This proactive approach minimises downtime and ensures continuous, optimal performance.
One of the most exciting advancements in the evolution of digital twins is their ability to generate engineering deliverables based on operational performance and historical data. As digital twins gather data from various assets over time, they become a central
repository of knowledge. This data, enriched by AI, provides a foundation for generating new engineering designs, modifications, and updates tailored to actual operational conditions.
For example, based on historical performance data, a digital twin can suggest optimised engineering modifications to equipment, improving efficiency and reducing the need for costly redesigns. This dynamic generation of deliverables enables engineers to create more accurate, efficient designs, ensuring that assets perform optimally throughout their lifecycle.
An Integrated Approach, The Industrial Metaverse
The future lies in combining digital twins, AI, generative AI, knowledge graphs, and other cutting-edge technologies to create an integrated industrial metaverse. This vision represents the ultimate convergence of digital and physical worlds, where real-time data and AI-driven simulations interact seamlessly to optimise industrial operations.
In this metaverse, digital twins are not just passive replicas but active, AI-powered models that continuously learn and adapt based on operational data. This integrated approach has the potential to optimise costs, reduce emissions, enhance safety, and eliminate repetitive tasks, allowing human operators to focus on highervalue contributions.
The Future of Energy is Here
As the energy sector continues to embrace digital transformation, the integration of AI and digital twins offers limitless possibilities. By leveraging historical data, operational performance, and AIdriven insights, digital twins can unlock new levels of efficiency, safety, and sustainability.
At Kent, we are at the forefront of this revolution, offering innovative solutions that harness the power of digital twins and AI to drive the energy sector forward. Our vision is to create a smarter, more sustainable future where technology and human expertise work hand in hand to achieve operational excellence.
Carbon Capture, Utilization, and Storage (CCUS): A Key to a Sustainable Energy Future
Mark Venables explains that Carbon Capture, Utilization, and Storage (CCUS)
is emerging as a crucial technology for the oil and gas industry, enabling companies to reduce their carbon footprint while enhancing production efficiency and supporting global climate
As the world faces growing environmental challenges, managing carbon emissions has become a priority for industries, especially the oil and gas sector. Carbon Capture, Utilization, and Storage (CCUS) is emerging as a critical technology to help mitigate the environmental impact of industrial processes by capturing CO2 emissions and either storing them underground or reusing them for enhanced oil recovery (EOR). This not only reduces greenhouse gas emissions but also creates opportunities for increased efficiency in oil production.
How CCUS works
CCUS involves three key steps:
1. Carbon Capture: CO2 is captured from industrial sources like power plants and refineries, using technologies such as pre-combustion, post-combustion, or oxyfuel combustion capture.
2. Carbon Utilization: The captured CO2 can be repurposed for industrial uses, notably for EOR. In EOR, CO2 is injected into oil reservoirs to increase pressure, allowing for more oil extraction while simultaneously sequestering the CO2 underground.
3. Carbon Storage: If the CO2 cannot be utilized, it is injected into deep geological formations, such as depleted oil and gas fields, where it is securely stored, ensuring it does not contribute to atmospheric pollution.
CCUS in oil and gas
For the oil and gas industry, CCUS is becoming essential as companies face increasing pressure to reduce their carbon footprint. CCUS offers a practical solution for reducing emissions from refineries and other industrial activities, helping companies align with global climate goals.
Enhanced Oil Recovery (EOR) offers a unique advantage. By injecting CO2 into aging oil fields, oil companies can not only sequester carbon but also extend the life of these fields, boosting production without the need for new exploration. This process is already being used in regions like the U.S. and the Middle East, contributing to more efficient and sustainable oil extraction.
CCUS and the Net-Zero Ambition
With countries setting targets for net-zero emissions by 2050, CCUS is becoming a key component in the global strategy to combat climate change. While renewables and energy efficiency improvements are vital, certain industrial processes, such as steel and cement production, will continue to generate emissions for years to come. CCUS provides a pathway for managing these “hard-to-abate” emissions, making it indispensable for achieving long-term climate goals.
For oil and gas companies, CCUS allows them to continue providing energy while reducing their environmental impact. As major producers like Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) invest in cleaner technologies, CCUS is playing a critical role in helping them decarbonize their operations.
Challenges and opportunities
Despite its potential, CCUS faces challenges, particularly in terms of cost and infrastructure development. Capturing and storing CO2 can be expensive, and building the infrastructure, such as pipelines for CO2
goals
transport, remains a hurdle. Public acceptance of underground storage is another concern, particularly in regions with large populations.
However, technological advancements and government incentives are making CCUS more viable. In the U.S., tax credits under the 45Q program are encouraging companies to invest in CCUS projects. Governments across Europe and the Middle East are also incorporating CCUS into their climate strategies, offering a more supportive regulatory environment.
Private sector investment is also growing. Major oil companies like ExxonMobil and Saudi Aramco are dedicating significant resources to advancing CCUS technologies and building the necessary infrastructure. These efforts are helping to drive down costs and scale up the deployment of CCUS across the industry.
Embracing CCUS a necessity
As the world transitions to a low-carbon future, Carbon Capture, Utilization, and Storage (CCUS) is becoming a critical tool for managing emissions in energy-intensive industries like oil and gas. By capturing CO2, reusing it in enhanced oil recovery, and storing it safely underground, CCUS offers a way for oil and gas companies to reduce their carbon footprint while continuing to meet global energy demands.
Although challenges remain, the increasing focus on CCUS from both industry and governments underscores its importance in the fight against climate change. For oil and gas companies, embracing CCUS is not just an option but a necessity for aligning with global sustainability goals and securing their future in a rapidly evolving energy landscape
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