How to cut emissions by investing in oilfields development
The oil industry is increasingly seeing a global slowdown in emissions, but some parts of Australia may have the best prospects to achieve the goals of the Paris Agreement.
Key points:There are no national emissions targets for oilfield developmentThe OECD said Australia’s current oilfields were among the bestThe OECD’s assessment is based on modelling that has identified key factors that drive emissions.
A report by the OECD released today found the nation’s oilfields have the potential to be the best at reducing global emissions.
The OECD, an international research organisation, looked at the world’s oil reserves and concluded Australia’s oil fields are among the world best at producing oil.
The report said Australia was a significant exporter of crude oil, particularly to Europe and the Middle East, and has the potential, if it was developed properly, to supply some of those countries with a substantial portion of their oil needs.
“Australia has significant potential to increase its oil production by approximately 3.5 million barrels per day in 2030, with the potential for approximately 2.5% of world production to come from our oil fields,” the report said.
“Given the large contribution Australia’s existing oil and gas reserves make to the global economy, we believe that Australia’s offshore oil and natural gas resources can be developed further and in a more sustainable manner than they have been in the past.”
The report also said Australia is a high-income economy and could benefit from an increase in its carbon emissions, especially as the country’s emissions from power generation increased by 7.4 per cent in 2030.
The emissions from the oil and petrochemical industries are also growing at a fast rate, with an increase of nearly 30 per cent over the past decade.
The Paris Agreement aims to reduce greenhouse gas emissions from global economies by reducing the intensity of greenhouse gas activities.
Australia, the world leader in renewable energy, has committed to reduce its greenhouse gas (GHG) emissions to 31 per cent below 2005 levels by 2030, compared to 1990 levels.
The country’s renewable energy generation, including wind, solar and hydro, are the most carbon intensive.
“As an advanced economy, Australia is particularly vulnerable to the impact of climate change, particularly in the coming decades, due to its ageing population and energy mix,” the OECD said.
The research was undertaken using a range of modelling approaches including economic modelling, research and modelling on the future of Australia’s energy industry.