TECH FLASH
Energy Optimization: A Key to Competitiveness Through the Energy Transition BY DAVID ANDERS
The need to adapt to a changing energy and regulatory landscape while maintaining competitiveness is a key challenge for the oil and gas industry. New technologies are providing increasingly cost-effective solutions to mitigate the impact of carbon, and optimizing energy use to improve efficiency has the potential to generate a positive return on investment in the near term while simultaneously working towards a low-carbon future. Energy optimization can include both improvements to equipment and facilities but also operational optimizations, productivity, fuel switching, and self-generation. The scope of energy optimization encompasses a holistic review of energy consuming systems to optimize performance, improve resilience, and enhance environmental sustainability. Moreover, minimizing energy cost and future cost risks has a direct impact on competitiveness in a commodity industry.
“... optimizing energy use to improve efficiency has the potential to generate a positive return on investment in the near term while simultaneously working towards a low-carbon future.” 47 CHOA JOURNAL — February 2022
“... energy optimization encompasses a holistic review of energy consuming systems to optimize performance, improve resilience, and enhance environmental sustainability.” The scope and objectives of an energy optimization engagement can vary widely depending on a company’s business objectives, external policy, and economic drivers, as well as a company’s starting point in terms of understanding energy use within its operations. Understanding energy use and costs The initial step in any energy optimization study is an analysis of the types, quantities, and costs of energy inputs. This may include fuel, electricity, water, purchased steam, and hot or chilled water. Energy use and cost intensities can be calculated to benchmark facilities against similar operations. The structure of energy rates and tariffs needs to be well understood; this may include volume or capacity-based pricing, and firm or variable supply options. A project may improve energy costs through shifting usage patterns or switching to a more cost-effective rate option.
