Energy Capital The Magazine-Novembrer 2022-Edition 15

Funding

Overcoming water shortages: desalination technology continues to evolve

By Susan Nash, Ph.D. Director of Innovation, Science & Technology AAPG

Severe and persistent drought, population patterns, commercial agriculture, and climate change have caused critical water shortages in many parts of the world. The consequences are dire, as crop failures, electricity grid shutdowns, and mass migrations of “climate refugees” cause economic and political destabilization as well as severe damage to ecosystems and human populations.

As a result, the global thirst for fresh water is spurring advances in the purification and desalination, which include thermal condensation, reverse osmosis, chemical process, and evaporation.

The dramatic rise of desalination Fully 20% of the world’s population obtains water for human, animal and crop usage from desalination. Most of the desalinated water comes from sea water, although some does come from brackish aquifers. Other underutilized but potential sources of brackish or subsurface saline waters can be those co-produced with oil, which are currently simply reinjected into the subsurface as “wastewater.”

The technical capacity to desalinate water with high levels of total dissolved solids (TDS) has existed for decades, but the cost of the most

Credit: Jeremy Enlow

common desalination methods (thermal distillation and reverse osmosis) is high, and workable alternatives have not been available until recently, when a few technological breakthroughs emerged at the same time as conditions made ecosystems collapse due to drought.

There is no denying that dramatic water and hydroelectric grid energy has been exacerbated by dams. While it can be argued that dams are effective in preventing catastrophic flooding for those who built farms, homes, even cities in floodplains, it must be acknowledged that when climate changes cycle to low or no rainfall, all the systems dependent upon rainfall or snowmelt fail, resulting in cascading failures of electricity, irrigation, and potable water delivery systems. Without the introduction of new technologies, the human and agricultural systems run the risk of complete collapse.

The solution is not to look at surface impoundments or to rely on rain or snowmelt, but to take advantage of heretofore unusable water stores that, thanks to technological breakthroughs, can be transformed into a viable water source.

The primary desalination processes include thermal distillation, reverse osmosis, and enhanced evaporation.

Thermal distillation

One of the earliest ways to desalinate water was to boil seawater, capture the steam and collect the condensate. The solids precipitate, leaving behind

salt and other minerals, some of which can be very valuable. The downside is that disposing of it can be difficult.

Where / when used: It’s best employed where there is a naturally occurring fire, or ignitable gases producing fire. So, the obvious places are volcanoes and natural gas flares. The downside to distillation is that it requires a great deal of energy.

There are a number of pros and cons with thermal distillation. The water that results from distillation is very pure. The downside is that the process uses a great deal of energy and is expensive. That said, if there is a cheap source of energy (flared gas or geothermal), distillation can be a great solution. In fact, some operations in North Dakota and the Permian Basin have already started using the gas they would ordinarily be flaring to distill produced water.

Reverse Osmosis

Reverse osmosis is currently the most widely used process for purifying water. It is, in essence, membrane ultrafiltration, where the saline water passes through a membrane with extremely low permeability that has the capacity to separate out ions, unwanted molecules and larger particles from the source water.

Reverse osmosis is widely used across the globe. It is the principle method for separating the dissolved solids from water in arid coastal areas such as the Middle East (Saudi Arabia, Dubai, United Arab Emirates, Israel), California (San Diego) where seawater is used. It is also used for purifying water from brackish aquifers in inland locations. One example is that of El Paso, which is currently the largest purifier of brackish water in the world. The Kay Bailey Hutchison desalination plant can provide up to 27.5 million gallons of freshwater daily

and serves as an important research center to investigate desalination, reverse osmosis, brackish water throughput, and more (El Paso Water, 2022). El Paso is fortunate in that it sits on vast reserves of brackish water which were unusable before the development of efficient reverse osmosis processes which involves sixteen production wells and sixteen blend wells from the Hueco Bolson formation aquifer. The water is pretreated and goes through sand strainers, higher gauge filters, and incorporates an anti-scale chemical program.

Reverse osmosis has made life possible in areas where water is in short supply. However, there is a price, and reverse osmosis requires a great deal of energy as well as the use of expensive membranes, which must be disposed of properly and cannot easily be recycled or reused. Further, as in the case of all methods, one must be very disciplined with an anticorrosion and anti-scale chemical program, or run the risk of losing the equipment to rust and scale.

The United States Geological Survey has published two major studies of brackish water resources in the United States, the most recent being the National Groundwater Census and Brackish Groundwater Assessment in 2021 (https://www.usgs.gov/missionareas/water-resources/science/national-watercensus-brackish-groundwater-assessment). The studies help develop a roadmap for future brackish groundwater desalination and a solution to some of the water shortages in areas affected by drought and diminishing water supplies.

Evaporation

Perhaps the desalination technology with the brightest future is that of evaporation. Evaporation has been used since ancient times but it can be a slow process when there are no facilitating or enabling technologies in conjunction with it.

In the past, the water is purified as water evaporates within a vessel where the condensate is captured and then channeled into flow tubes that take them to a large holding tank or receptacle. New designs and technologies have greatly enhanced the ability

to generate additional heat using parabolic mirrors, and solar panels can be used to generate energy for pumps and other parts of the process.

The highly efficient new approach to evaporation has been developed by Solar Water and others, and is being implemented now in the new super-city in Saudi Arabia, NEOM. The developers anticipate up to 500,000 cubic feet of purified water per day to be generated from the evaporation units that start at the coast and are constructed inland, creating a

narrow green belt that extends from the sea to as far inland as 100 km. There are many advantages to using evaporation technologies for desalination. The most compelling is that it is a low-energy process. Further, it does not require the massive quantities of expensive (and non-biogradable) ultrafiltration membranes used in reverse osmosis. The cost of chemicals to prevent corrosion and scale are similar to those of thermal distillation and reverse osmosis.

Evaporation desalination units can come in many different sizes, and it is possible to experiment with parabolic mirrors and other heat intensifiers to accelerate the evaporation process. It does require expert knowledge and skill to install and operate correctly, which can be an obstacle in remote or low-income areas.

CONCLUSION

Technological breakthroughs and ongoing research and testing of different desalination methods offer real hope for communities currently experiencing drought or a lack of access to clean water. While not all solutions are appropriate for all areas with water shortages, there may be a good fit for almost all areas currently suffering water shortages. While none of the solutions are without cost, and all require chemical treatment to maintain operations and also a strategy for disposing of waste products, they do provide options when potable groundwater supplies are being depleted and climate change is causing droughts.

Technology

This funding opportunity seeks to advance the technology readiness level of innovative fish passage and protection technologies through testing to verify technologies’ biological effects and performance.

Technology innovations that may apply for funding include novel solutions that have already established proof-of-concept but require testing as a next step toward market adoption, as well as advancements to established technologies that show potential to reduce negative impacts to fish, increase technology performance, dramatically reduce costs and/or present novel applications (such as use for different fish species, environmental conditions, or types of infrastructure) but require testing to quantify those improvements.

IMPROVEMENTS IN TECHNOLOGY TO HELP FISH MOVE SAFELY THROUGH HYDROPOWER FACILITIES REDUCES ENVIRONMENTAL IMPACTS AND HELPS TO RESTORE FISH POPULATION LEVELS.

ADVANCING NEW OR MORE EFFECTIVE FISH PASSAGE AND

PROTECTION

TECHNOLOGIES COULD ENABLE IMPROVED ENVIRONMENTAL OUTCOMES FOR BOTH NEW AND EXISTING HYDROPOWER PLANTS.

Improvements in technology to help fish move safely through hydropower facilities reduces environmental impacts and helps to restore fish population levels. Fish passage and protection technologies provide a way for fish to navigate barriers such as dams and impoundments and provide river connectivity by enabling fish movement and migrations.

Advancing new or more effective fish passage and protection technologies could enable improved environmental outcomes for both new and existing hydropower plants, and expand environmental mitigation options available to plant owners seeking licensing or relicensing.

Applicants are highly encouraged to include individuals from groups historically underrepresented in science, technology, engineering, and math on their project teams. Further, minority-serving institutions, minority

business enterprises, minority-owned businesses, woman-owned businesses, veteran-owned businesses, or entities located in an underserved community that meet the eligibility requirements described in the funding opportunity are encouraged to apply as the prime applicant or participate on an application as a proposed partner to the prime applicant.

WPTO estimates making up to five awards under the Advancing Fish Passage and Protection Technologies funding opportunity, ranging between $500,000 and $1,300,000.

Applicants must submit a concept paper by 5 p.m. ET on December 5, 2022, to be eligible to submit a full application.

The U.S. Department of Energy (DOE) today announced $35 million in funding from the Bipartisan Infrastructure Law to advance tidal and river current energy systems. The notice of intent proposes a funding opportunity, expected to be released in early 2023, to develop a tidal or river current research, development, and demonstration site and to support in-water demonstration of at least one tidal energy system.

Marine energy technologies, including tidal and river current technologies, transform the energy in the natural flow of oceans and rivers into clean electricity. Tidal energy systems harness power from the movement of water created by the moon’s gravitational force, while river current energy systems capture power from the directional flow of water in a river. Tidal and river current resources in the United States are equivalent to 7.8% of all U.S. power generation in 2019. Even if only a portion of these resources are captured, they could provide local, affordable, and clean power to rural and remote island communities and help achieve the Biden-Harris administration’s goal of a net-zeroemissions economy by 2050.

“Our oceans and rivers represent a huge potential source of renewable energy,” said Alejandro Moreno, Acting Assistant Secretary for Energy Efficiency and Renewable Energy.

TIDAL AND RIVER CURRENT RESOURCES IN THE UNITED STATES ARE EQUIVALENT TO 7.8% OF ALL U.S. POWER GENERATION IN 2019.

“Building on recent commercial advances in the United States and abroad, funding from President Biden’s Bipartisan Infrastructure Law can help the United States become a leader in this industry and make significant progress toward harnessing a key source of clean power.”

The U.S. tidal and river current energy industry requires long-term and substantial funding to move from testing devices one at a time to establishing a commercial site. The complexity of installing devices and navigating permitting processes, combined with a lack of connection to local power grids, have proven to be a consistent barrier to advancing tidal and river current energy. This proposed funding opportunity aims to support state clean energy plans and goals, advance tidal and river current energy research and development, and attract competitive tidal and river current

energy developers to deploy their devices at a demonstration site. The opportunity also seeks to build the infrastructure and supply chains needed to support the U.S. tidal and river current energy industry in cooperation with stakeholders, including local agencies, tribes, and universities, and establish a working business model covering site development to commercial scale.

AI in Manufacturing Market Size to Reach $17,925.50 Mn at a CAGR of 51.5%

Two recent press releases highlight the current situation in the energy sector in North America on its way to decarbonization:

The material that is shot, scattered, dropped, or detonated from any weapon, such as bombs or rockets, and more specifically, the shot, shrapnel, bullets, or shells that are fired by firearms is referred to as AI in Manufacturing. AI in Manufacturing can be thought of as both a throwaway weapon and the components of other weapons responsible for producing the effect on a target. AI in manufacturing can take on a wide variety of shapes and sizes,

and it is frequently developed with the sole purpose of functioning within particular sorts of weaponry.

Artificial Intelligence is the branch of computer science that deals with making smart machines that requires human intelligence. Artificial Intelligence is believe to be the gamechanger in the industry of manufacturing. The rising adoption of Industrial 4.0 is likely to drive the growth of the market in the upcoming years.

In manufacturing plants, the information obtained from various sensors, software’s, IOT driven system may become complex for human to analyse, in such situation use of Artificial Intelligence is the most efficient solution. In addition to Artificial Intelligence, with the help of Machine learning and pattern recognition, the manufacturing sector can transform completely.

The use of AI in Manufacturing Market plant allows the user to analyse and predict consumer behaviour, predict preventive maintenance to prevent unwanted shutdown, detect abnormalities in production process and much more. AI also facilitates the use of real time information which could improves the decisionmaking time boosting the growth of organization.

ARTIFICIAL INTELLIGENCE IS BELIEVE TO BE THE GAMECHANGER IN THE INDUSTRY OF MANUFACTURING. THE RISING ADOPTION OF INDUSTRIAL 4.0 IS LIKELY TO DRIVE THE GROWTH OF THE MARKET IN THE UPCOMING YEARS.

Moreover, increasing volume of data gathered through various devices, coupled with the widespread availability of high-speed broadband networks and the upcoming implementation of 5G technologies will further contribute to the global AI in Manufacturing Market in the coming years. Whereas, the lack of skilled expertise and infrastructure and high operation along with lack of awareness are some of the factor that are about to hamper the growth of AI in Manufacturing Market.

Driver- Increase in adoption in AI technology for production optimization

Industries like automobiles, chemical, electronics, food among others are witnessing the need for production optimization due to competitive environment. Artificial intelligence and Machine Learning the two powerful tools to minimize the

consumption of resources in every industrial process and maximize the output by optimizing the power consumption. AI and ML are build a statistical model using available data from various sensors, material used in manufacturing and various software’s. Based on this data it predicts the accurate parameter for final product resulting in saving extra material and additional resources in the production process. This enables the business to make the production cost effective.

Driver-Implementation of Industrial 4.0

The influence of industrial 4.0 on the manufacturing sector is tremendous. With 4.0 the industries are getting smarter by adoption of smart sensors, interconnected systems, and others. But due to this a large amount of data is exchanged among the machines. To handle such large amount of data, Artificial intelligence is the best choice as it facilitates intelligent manufacturing. Intelligent manufacturing uses AI based data driven model that that takes manufacturing decision, prediction and real time optimization in manufacturing process. Hence, driving the growth of the AI in Manufacturing Market.

Challenges:

The implementation of AI requires skilled labour who can handle the entire process right from start to end. The concerned person should have in depth knowledge about AI, its behaviour, implementation and limitation. Thus, lack of skill and knowledge whether AI can handle the entire process or not is what hampering the growth of AI.

A potential barrier to adoption of AI technology is the manufacturer lack of trust in its capabilities. People without relevant education background often struggle to understand the working model of technology and do not have full confidence in its working.

Biden-Harris Administration Launches $1 Billion Bipartisan Infrastructure Law Program to Enhance Energy Systems in

By Bioenergy Technologies Office

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today issued a Request for Information (RFI) seeking public input on a new $1 billion program to improve energy generation in rural or remote communities across the country. Funded by President Biden’s Bipartisan Infrastructure Law, the Energy Improvements in Rural or Remote Areas (ERA) program will strengthen the resilience, reliability, and availability of energy systems, helping communities unlock the public health and cost-saving benefits cleaner, more efficient energy provides. The new program reflects the Biden-Harris Administration’s continued commitment to ensuring no communities are left behind in the historic transition to a clean energy future.

“For America to flourish, rural America must succeed,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to the President’s Bipartisan Infrastructure Law, DOE is making critical investments in energy infrastructure that strengthens the foundation of rural communities in America.”

Nearly one in six Americans live in a remote or rural community. Due to low population density and isolation from larger electric grids, these communities face higher energy costs and poor electrical reliability. Rural communities

NEARLY ONE IN SIX AMERICANS LIVE IN A REMOTE OR RURAL COMMUNITY.

also have a disproportionately high share of low- and moderate-income families, who have limited ability to cope with high electricity costs.

The ERA program will provide federal support to rural or remote communities to:

• Improve the overall cost-effectiveness of energy generation, transmission, or distribution systems;

• Site or upgrade transmission and distribution lines;

• Reduce greenhouse gas emissions from energy generation by rural or remote areas;

• Provide or modernize electric generation facilities;

• Develop microgrids; and

• Increase energy efficiency.

The Office of Clean Energy Demonstrations will manage the ERA program and is charged with identifying and demonstrating innovative solutions to make energy systems in rural or remote communities more resilient to the worst effects of climate change, while also supporting new economic opportunities and creating high-quality jobs.

DOE welcomes public input from a wide range of stakeholders, including energy project developers, utilities, community organizations, environmental justice organizations, as well as state, local and Tribal governments to shape this program. To help inform implementation of the ERA program, the RFI seeks input on the types of energy demonstration projects, programmatic design considerations, equity, environmental and energy justice, and workforce and transfer of knowledge gained through ERA demonstrations to ensure that the projects selected are scalable and replicable.

DOE will host a series of in person and virtual workshops for communities and interested stakeholders to learn more, ask questions and discuss the types

of projects that can improve their energy systems as they prepare to respond to the RFI.

DOE expects to announce a funding opportunity to solicit project proposals in 2023. Participation in the RFI will not affect participation in any funding opportunities or other opportunities resulting from this program. Feedback to this RFI can be submitted to ERA@hq.doe.gov until November 28, 2022, at noon, EST. Find out more on OCED Exchange.

DUE TO LOW POPULATION DENSITY AND ISOLATION FROM LARGER ELECTRIC GRIDS, THESE COMMUNITIES FACE HIGHER ENERGY COSTS AND POOR ELECTRICAL RELIABILITY.

How will winterizing your oil and gas distribution fleet differ this year

The practice of winterizing an oil and gas distribution fleet today has changed drastically from even just five or ten years ago. Gone are the days of adjusting each truck based on historical perceptions or just going on experience.

By Brian Antonellis, CTP, Senior Vice President of Fleet Operations Fleet Advantage

Today’s advanced maintenance data analytics and technology have equipped progressive oil and gas fleets with the tools and resources they need to make more informed decisions, eliminating the need for guesswork. Furthermore, while many distributors must begin to make adjustments in October and November, winterizing today is actually an annual process built around seasonal preparation.

This is especially critical during winter months when oil and gas deliveries to residential and commercial customers are imperative for heating, especially in January and February.

Everything begins with a comprehensive plan

Oil and Gas fleets and their maintenance/ technician departments must have a plan – not just for the winter, but for the entire year. Everything starts with preventative maintenance (PM) and the ability to calendarize the PM plan. Maintenance prepared for and performed in the spring and summer will have a different focus than that of winter, and distributor fleets must be able to identify the trends and areas that colder climates may affect more so than in warmer climates.

For example, a fuel filter that has some water in it in April and May won’t offer any problems. However, that same filter in November and December will be a completely different story if you’re operating north of I-70. This can result in a breakdown on the side of the road, which affects everything from driver morale, safety, routing and other costs such as on-call maintenance.

Setting the appropriate annual plan will be vital to establishing the proper PM checklist at different times of the year.

Pay close attention to fuel systems

Another critical area to focus on is your fuel system. Many maintenance professionals and technicians still look at it as a filter, but today it’s a complete system. In the

winter months, trucks move into higher idle applications. For many of today’s trucks we talk about a five-minute idle set. Still, the reality is that the truck allows a five-minute idle after it reaches normal operating temperature. Therefore, that increased idle during the winter months is going to cause additional soot to enter the diesel particulate filter (DPF) and can impact the entire system.

More specifically, you have the seventh injector, which inserts additional fuel for the engine burn. There is also the filter, which includes the crossover pump, as well as the fuel blend which has great consideration. Oil and gas distributors can see as much as twoto three-tenths MPG reduction during the winter months, not only from the change in fuel and different blends, but also cold tires, cold transmission, cooler fluids, etc. Therefore, a truck that typically reaches 7.3 MPG drops to 7 even if you’re doing everything correctly.

Changing tires can’t just be based on muscle memory

In addition to fuel, tires are a major expense for organizations, and preparing your winter plan can be significant here. As winter approaches, many distributors may consider running their rear tires back to 4-32 treads. There is this perception that since there will be snow and ice on the road, technicians must hurry up and change their tires. The reality is the traction between 4-32 and 8-32 is very minimal. However, each tire change can bring additional expenses, and fleet managers must be cognizant of this. It’s essential to leverage sophisticated PM and tire data and analytics, and solid KPI metrics from the OEM and dealer to ensure tires are only changed under the right circumstances

and seasonal timing instead of just going on perception or a hunch.

In addition to accurate data, distributors and their maintenance departments must have the appropriate technology to properly and continually make assessments in accordance with their annual PM plans. Years ago, the first thing a technician would do when inspecting a truck was to change the oil. However, today’s technicians are plugging a laptop into the diagnostic portal. By doing so, you can check critical areas of the truck that may show certain areas in the fuel system or tires to identify areas that could have a problem and perform

more preventative work – even before a check engine light appears.

Properly communicating cost breakdowns to the C-level

All of these decisions can potentially cost the organization several thousands of dollars each year. And when you multiply this by 40-60 trucks, you’re talking a significant amount of money eroding the company’s bottom line. Fleet managers and maintenance crews must have an open line of communication with the executive suite so that planning and expenses can be discussed together.

A solid plan and detailed line-item visibility can make all the difference in the world in front of the executive team. Fleet personnel should be able to address leadership and say, here's what we foresee happening; this is why maintenance costs have seasonality; this is why our tire cost is rising in the fall; this is why our fuel cost is rising; and here's what we plan to do about it. What’s more, today’s analytics and data technology can help demonstrate these cost changes.

When oil and gas distributors combine a comprehensive annual plan with today’s sophisticated data analytics and maintenance technology, they can keep their trucks on the road more and drivers safe during the winter months while helping the executive suite preserve the bottom line.

About The Author: Brian Antonellis, CTP, is Senior Vice President of Fleet Operations at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and lifecycle cost management.

For more information visit www.FleetAdvantage.com

Clean sources

Incorporation of clean energies for oil & gas exploration and production activities

The oil and gas industry faces opposition from a public greatly concerned with the environmental impact of fossil fuels, ever-more skeptical shareholders, and challenges from policymakers seeking to meet decarbonization goals and expected oil and gas demand simultaneously.

By Energy Capital

Energy transition

The global energy transition and oil and gas companies demand, financial, and social future are increasingly in question. The decarbonization forecasts show a long-term role for oil and gas. However, demand levels are reduced from where they stand today. However, oil and gas remain an essential part of the energy mix, especially in developing regions.

In the United States, India, and China, the three most significant greenhouse gas emitters, natural gas has the potential to remain an integral component of the low-carbon energy transition for decades to come. The industry has to adapt to a changing policy and investment landscape. It also must evolve and lead efforts to decarbonize the energy system.

Hubbert's Peak Theory

Moreover, discussing the oil and gas industry also demands discussing Hubbert's Peak Theory. It is related to the long-term depletion rate of oil and other fossil fuels. It states that world oil production will reach its zenith and decline as fast as it grows. It considers that the limiting factor in oil extraction is the energy required to extract it, not its economic cost. In general, when it is

necessary to consume energy equivalent to one barrel of oil or more to obtain the same barrel of oil, production is no longer profitable, and the field is abandoned.

In the past, oil producers and consumers worldwide forgot that they were consuming energy naturally produced over many millions of years. In contrast, today, oil-consuming countries are encouraged to look for new energy sources and to provide greater efficiency in the consumption of their economies. There is evidence that the world is

heading toward a permanent oil crisis. Hubbert's Peak Theory is also an essential clue in the energy transition; it shows why there is an urgent worldwide need to change how we make power.

A World with clean energies laws

Worldwide is changing from policies supporting oil and gas production to policies that disincentivize fossil fuels. Many governments are encouraging substitute technology and fuel, especially renewable energy. In addition, the decrease in carbon use is being supported by circular economies. Here, materials are reused or recycled instead of disposed of at the

end of their service life. Investors are also becoming strategic drivers of decarbonization action. They are becoming supporters of the future energy mix.

As a result, oil and gas companies are rethinking new business models in a decarbonizing world. They can endeavor to support coal-to-gas switching and invest in infrastructure that enables electrification to meet end-user demand and support lower GHG upstream operations.

Companies can also focus on using renewables and new technologies not just as a hedge against demand risk or to decarbonize their production but to leverage their expertise with supply chains and market

development to support low-carbon energy deployment in the energy transition the whole. Oil and gas companies choosing to engage with the low-carbon energy transition may determine how they are viewed by shareholders, governments, and the general public.

Changing the oil and gas industry Policies linked to the low-carbon transition impact the oil and gas sector from three directions. The first direction

SHAREHOLDER PRESSURE, THE EVOLUTION OF NEW TECHNOLOGIES, AND RAPIDLY CHANGING CONSUMER PREFERENCES HAVE FORCED OIL AND GAS COMPANIES TO RE-EVALUATE THEIR LONG-TERM STRATEGIES AND EXPLORE NEW BUSINESS STREAMS". DAVID DOHERTY, BLOOMBERGNEF ANALYST.

is a shift from policies that have historically supported oil and gas production to begin instead of disincentivizing those products. Disincentives include carbon taxes, methane flaring restrictions, or permitting regulations.

The second direction is a suite of policies encouraging substitute technology and fuel, particularly renewable energy. These programs support technologies like hydrogen and electric vehicles. Some procedures aim for 100 percent renewables and may punish the oil and gas sector through criminal and civil prosecution for alleged past misbehavior on climate change.

The third policy is the circular economy. It is an alternative to the traditional linear economy, make, use, and dispose of. Here we keep resources in use for as long as possible, extract the maximum value from them while in use, then recover and regenerate products and materials at the end of each product service life.

This policy will mainly impact the downstream operations of oil and gas companies through their refining, fuel logistics, and petrochemical businesses. Some opportunities for oil and gas companies with a circular economy include feedstock recycling from plastics and tires and using waste to generate heat energy.

United States context

The United States is the world's top oil and natural gas producer. Its decision to continue at this pace or curb production to achieve its climate goals will have global consequences. The country's economy runs on these fossil fuels. However, producing and burning them releases greenhouse gas emissions that cause climate change.

In general, in the country, the oil and gas industry's change to adopt clean energies is slow, more than expected. It could be that new government laws may accelerate this change through the following

CLIMATE CHANGE CONCERNS.

years. Moreover, Russia's war in Ukraine stoked the debate over whether the United States should boost production to strengthen U.S. and European energy independence or reduce output, improve efficiency, and transition to renewables.

Canada's renewables, role

On the other hand, Canada has a large landmass and diversified geography. As a result, the country has substantial renewable resources that can be used to produce energy. These resources include moving water, wind, biomass, solar, geothermal, and ocean energy. It is a world leader in creating and using energy from renewable resources. Moreover, renewable energy sources currently provide about 18.9 percent of Canada's total primary energy supply.

Canada's energy transition occurs in many different areas of the economy and is influenced by various technologies, policies, and market trends. The change to clean energy generation also reached the oil and gas industries positively.

Supporting the future of energy

However, the policy, investor, and social pressures on the oil and gas sector do not preclude a significant and vital role for the industry in the low-carbon energy transition. The pathways for decarbonization include oil and gas when partnered with the right technologies and policies. The skill sets and resources throughout the industry to mobilize new lower carbon forms of energy suggest that there may be opportunities for the sector companies.

To respond to the low-carbon energy transition, oil and gas companies must recognize their industry's role in global energy demand growth. They need to couple that role with the needs and expectations of the low-carbon system. They must share this vision with their peers to take similar steps and partner with stakeholders in the oil and gas industry, alternative energy sector, and policy community. They will all build structures to support future high-energy growth and low-carbon pathways. Together, they will build strategies for low-carbon business models, profitable and explainable to the markets. They must support the development of government ESG policies as well as need to develop concepts of net zero emissions and circular economy.

Also, there is a need to encourage the growth of international carbon markets to expand the possibilities for government-to-government and business-to-business joint cross-border projects for emissions reduction.

Finally, these steps can focus the oil and gas sector in the evolution, thriving, and leadership transition to an energy system supporting future demands.

THE OIL AND GAS SECTOR HAS TAKEN A KEEN INTEREST IN THE SUBJECT AS THE SHIFT AWAY FROM FOSSIL FUELS GAINS MOMENTUM DUE TO

Oil and Gas

Nakasawa Resources, extraction to the last drop of oil

The hydrocarbon extraction method called enhanced oil recovery consists of injecting large volumes of fluids such as water, gas, steam, and air into the reservoir, under special and specific conditions that allow for maintaining the required pressure and forcing the exit of more crude oil.

Nakasawa Resources was established in 2001 as a company committed to serving the oil and gas industry through innovative upstream technology solutions. Its Founder and President, José Wilfredo Molina remarks that the company maintains a firm commitment to its philosophy and values. In addition, it is based on an understanding of strict quality standards and ethical methods for both customers and continued success in today's fundamentally volatile markets.

Nakasawa Resources

The U.S.-based multinational has a presence in Canada, China, and India. It is currently a major player in the oil industry due to rising prices and

the current situation caused by the war in Russia.

Nakasawa Resources is a world leader in innovative technologies for oil and gas production. It strives to provide world-class enhanced oil recovery (EOR) solutions. It manages small- and large-scale steam injection projects to increase oil well production through its four business divisions.

Solutions and services

The company offers the market a range of solutions that support decisionmaking to implement a development

plan, operation, and evaluation of the field for its efficient exploitation. In this way, economic investments are minimized.

Its team is made up of top-level professionals. It includes experts in multidisciplinary engineering, steam generation equipment design, artificial lift system, enhanced oil implementation/monitoring, recovery projects, field operation, and thermal project development.

Super Matroid Technology

Is the latest innovative oil recovery technology. It ensures increased profit

per produced oil, resulting in a higher value projection. Super Matroid Technology allows increased heat transfer to the reservoir with higher thermal efficiency, improving surface and reservoir steam quality, and increasing reservoir productivity. In addition, it helps contain the negative impact of conventional OTSG by closely controlling flue gas emissions.

With Super Matroid Technology, fewer injection days are required to meet the scheduled heat supply, ensuring savings in operation, fuel gas supply, and lower volume of treated water. It is also fully portable and complies with ground transportation regulations, allowing for complete and easy mobilization across equidistant injection points within an oil field and urban roads.

Unlike a normal steam separator installed at the outlet of the steam discharge line, there is no loss of condensate or thermal energy, thus saving up to 12% of feed water and fuel gas. In addition, Super Matroid Technology provides up to 12% additional heat over rated capacity, ensuring greater heat delivery to the reservoir. And it increases oil production by 15% or more, in addition to the initial steam injection recovery base.

The differentiator

What makes Nakasawa Resources different? The daily control and monitoring of parameters; in addition, the company accompanies its clients throughout the steam injection process. Another differentiator is the automation of the Super Matroid Technology and Super Matroid systems, as they have state-of-the-art sensors to measure downhole and surface parameters. Also, a benefit is a real-time control and monitoring. Since all data is collected and integrated into a master programmable logic controller linked to a central database. This ensures its accessibility through an

app that allows users to view the current status of the steam generation and injection process in real-time and on all mobile devices.

"With Nakasawa Resources' technology, it is possible to generate second-bysecond pressure and temperature trend graphs to streamline actiontaking and production optimization in real-time," says José Wilfredo Molina, Founder, and President.

Global presence

Nakasawa Resources is backed by major manufacturing operations in the United States, Canada, and China. This enables it to successfully manage large-scale projects from design to completion and maintenance. In addition, the company is also recognized for its work in several Latin American countries, such as Venezuela and Colombia. In Mexico, it has carried out some pilot projects and expects shortly to benefit national oil majors with its solutions for extraction.

Oil India Limited, a success story

Oil India Limited is an oil exploration and production company in India. It is the second-largest national oil and gas company in the country. It is an expert in new and mature reservoir management and enhanced oil recovery (EOR) technologies. In addition to its presence in India, OIL has a stake in blocks in countries such as Russia, the United States, Venezuela, Mozambique, Nigeria, Gabon, Bangladesh, and Libya.

Nakasawa Resources' project is called Cyclic Uninterrupted Steam Cycle Stimulation (CSS) operation. It is for heavy oil production at Oil

LEADERS IN ENHANCED OIL RECOVERY PROCESSES.

India Limited's Baghewala field in Rajasthan. It features Super Matroid technologies to support Oil India's global growth and strengthen its economic competitiveness.

The Super Matroid system being supplied includes a steam generator, a water treatment plant, a mobile laboratory, a communications center, steam transport pipelines, and industrial solutions services. Here, Nakasawa Resources' technology has the potential to drive the overall growth of enhanced

oil recovery for the Baghewala field. It has a fully automated system to inject 60 million tons of high-pressure steam into existing wells.

Since June 2022, a team of experts has been on-site at the Rajasthan oil field. Currently, Super Matroid Technology is in place and undergoing operational readiness to boost reservoir growth and performance. A key aspect is a configuration and connection of the equipment to control and data acquisition systems, better known as SCADA. In this way, operating parameters can be optimized, alarm conditions defined and reactions planned.

The technical team is also conducting hydrostatic, pressure, and flow tests to obtain IBR certification. This quantifies risk to make informed decisions on how, where, and when to inspect assets. In India, IBR certification regulates the design, manufacture, and inspection of any boiler. The steam generator is

an energy-intensive piece of equipment, and its proper design and inspection compromise both safety and life risk.

Oil market trend

"Oil companies have two years with big losses," comments the Founder of Nakasawa Resources; who has more than 20 years of experience in the industry. "However, in recent months, the price of oil has skyrocketed globally." As oil prices have risen, global oil projects that were not viable before are now becoming viable. The sector is experiencing an upturn, with higher profits and great business opportunities. This is where the multinational comes in. Oil companies can count on the technology that is revolutionizing the market for its efficiency, sustainability, and cost savings to extract every last drop from their fields.

GUIDED BY A FUNDAMENTAL PRINCIPLE: EFFICIENCY.