Major role outlined for oil and gas in a lower carbon world
Oil and gas have a crucial long-term role and will have much less of an impact on the environment in future, according to a new report released today by the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
"The report sets out how it is both possible and essential for oil and gas to co-exist in a net zero emissions world," says PEPANZ Net Zero Committee Chair Dr Kate Bromfield.
"The world’s population will reach 9 billion by 2040 and people will need more energy than ever. Renewable sources alone have no chance of meeting this demand, which means oil and gas are still expected to provide around half of the world’s energy by then.
"At the same time, the world must lower net emissions to reduce the impacts of a changing climate. Achieving this will be challenging but absolutely essential, and our industry is a key part of the solution."
The report outlines some of the key ways this can be achieved:
- Substituting coal with natural gas (which has half the greenhouse gas emissions)
- Pricing carbon through the Emissions Trading Scheme (ETS)
- Using carbon capture and storage technology (CCS)
- Offsetting emissions through planting trees
- Reducing the emissions that occur in the production of oil and gas (such as flaring and venting gas)
The report also urges the Government to introduce a comprehensive regulatory framework for CCS technology so that it can be deployed into New Zealand in future.
"Overall this is a good news story. It’s a ‘win-win scenario’ where we can enjoy the benefits of fast, affordable, and effective energy to power our lives, while tackling climate change at the same time."
The full report is available at https://www.pepanz.com/dmsdocument/92.