The global focus on climate change and renewable energy has made sustainability in the oil and gas industry grow in importance in recent years. The oil and gas industry is well-known for negatively impacting the environment, with a 2.5% increase in emissions in 2022.
As such, more and more leaders are trying to guide their organisations towards a greener future. 79% of energy and utilities executives stated that sustainability processes are a major concern, and 47% are dedicated to hitting net-zero emissions.
A key tool driving sustainable transformation is Environment, Health, and Safety (EHS) technologies. EHS technologies can be used to monitor the environmental and safety performance of equipment and processes, which helps companies adhere to regulations while promoting safety.
However, the oil and gas industry has been comparatively slow in embracing these technologies. 50% of executives from energy and utilities companies note the complexity of meeting these goals and implementing the technology. Bridging this gap will allow the Oil & Gas sector to catch up to other industries, and help them meet their goals of creating a more sustainable world.
Understanding the Environmental and Societal Impacts of the Oil and Gas Sector
Oil and gas operations have a substantial environmental impact due to their reliance on fossil fuels. This industry contributes significantly to greenhouse gas emissions, with estimates suggesting that it’s responsible for about 15% of the global total. In addition to its environmental implications, the industry also faces challenges related to social issues and regulations.
Shipping Costs and Emissions
Shipping constitutes a significant proportion of global oil transportation, and exhaust gas emissions are a large contributor to pollution. A single large ship can emit as much sulphur dioxide as millions of cars, leading to air and water pollution and affecting human health. Shipping emissions were also equal to 2.2% of the global total in 2012, and are projected to rise by 50 to 250% by 2050 at our current rate.
With countless types of pollutants being produced by ships, the maritime industry is one of the largest causes of pollution in the world. As such, in order to pursue environmental sustainability, oil and gas activities need to become more sustainable.
Carbon Footprint and Greenhouse Gases
The carbon footprint of the Oil & Gas industry is enormous. Operations release substantial amounts of carbon dioxide and methane, which are both potent greenhouse gases. The industry’s activities contribute to roughly 50% of all global methane emissions. Methane is over 25 times more potent at trapping heat than carbon dioxide, making the industry a major contributor to global warming.
These emissions lead to climate change and highlight the urgent need for the Oil & Gas industry to adopt sustainable practices. The industry’s overall impact on the planet’s ecosystems and communities has to be reduced, and this is where sustainable solutions come in.
Harnessing Technology for Sustainable Solutions
As the need for sustainability grows, organisations are seeking innovative solutions to minimise their environmental costs and liabilities.
From improving energy efficiency to reducing emissions and waste, EHS technology like Magellan X is a powerful tool in helping oil and gas production become more sustainable.
Manage Inventory with Technology
Efficient inventory management leads to wasted resources and overproduction. With technology, unnecessary strain on supply chain operations and the environment can be avoided.
PROPELLER is a Real-Time Location System (RTLS) that helps companies optimise their inventory management with Asset Performance Management (APM) and keep track of spare parts. PROPELLER can assist with up to $20k in savings per year by eliminating downtime and reducing excess stock by 30%. By providing visibility of crucial data at the user’s fingertips, PROPELLER helps organisations monitor their inventory status and manage their logistics efficiently.
Furthermore, the use of AI/ML-powered analytics can help companies locate bulk-order opportunities, and reduce excessive shipments, cutting down carbon emissions.
Learn more about PROPELLER and what it can offer your organisation.
Reducing Emissions with Technology
Another transformative technology that we offer at Magellan X is ecoMax, an industrial decarbonisation solution.
ecoMax is designed to measure and analyse fleet emissions, monitor machine and engine performance, and provide near real-time insights. This comprehensive monitoring and analysis can help organisations identify areas where they can reduce their carbon footprint. ecoMax is also an AI-powered system that can carry out predictive analysis, automated reporting, and produce tamper-proof Carbon Emission certification.
Similar to PROPELLER, ecoMax can be custom-tailored to vessels and industries. Our experienced team of engineers guide you throughout the onboarding process, and implement the systems that power ecoMax’s monitoring.
Find out more about how ecoMax can benefit your industry.
Embracing Sustainability with Magellan X Solutions
In order to address the critical challenges of sustainability in the oil and gas industry, companies must adopt innovative solutions that prioritise EHS performance. The role of technology in driving sustainable measures cannot be overstated, with solutions like Magellan X that can significantly transform heavy industry practices.
PROPELLER’s focus on energy efficiency and ecoMax’s ability to monitor emissions can contribute to a cleaner environment, while boosting a company’s reputation among stakeholders, investors, and the public. By making the decision to embrace Magellan X’s solutions, oil and gas companies can achieve their sustainability goals and meet growing expectations for responsible business practices.
Contact us to explore how our sustainable solutions can help your business.