Synergistic Cooperation with Energy Transition Initiatives of Oil Producing Countries and NOC from IOC Standpoint

Abstract

Decarbonizing initiatives are being advanced in the energy sector: not only international oil companies (IOC) and oil consuming nations but also national oil companies (NOC) and oil producing countries. The recent net zero initiatives, declared by several gulf coast countries (GCC), are expected accelerating the progress towards the decarbonized society. The study focuses on the UAE's decarbonization strategy, as a case example, because of the first country releasing the net zero initiative with the most concrete approaches among the GCCs. Each approach of the NOC, aligned with the national initiative, are carefully investigated to give a comprehensive perspective of the strategic grand design. This can bring us an insight of how each piece interacts with others and finally leads to having cooperative ideas from the IOC's viewpoints for achieving the NOC/IOC-common objective of net zero greenhouse gas (GHG) emission society. As a NOC's approach, an electrification of oil fields can reduce CO2 emission with valualizing lower carbon intensity oil. To enhance the effort, IOC can support the future market trading low carbon intensity products as offtaker. From the aspect of expanding the existing technologies, CO2 enhanced oil recovery (EOR) can contribute not only reducing CO2 emission and/or carbon credit trading but also producing clean energy such as ammonia and/or hydrogen, too. To improve CO2 EOR project values, the IOC can provide an advanced CO2 mobility control technology. The study discusses further win-win cooperative potentials such as other CO2 intensity lowering technologies (ex. water shut off, production chemical optimization) and another opportunity of decarbonization (ex. CO2-methanation).