A CO2 price of $40-80/ton could double the pace of industrial efficiency gains in the oil and gas sector, eliminating 15-20% of its CO2 emissions, as outlined in this 14-page note. Cost-curves would steepen in E&P and refining. Technology leaders benefit. Spending would also accelerate, particularly for heat exchangers, compressors, digitization and electrification projects.
The importance of industrial efficiency gains, particularly within the oil and gas sector, as part of the energy transition, is summarized on pages 2-3.
The mechanism for unlocking efficiency gains with a CO2 price, including the costs of improvement projects, is summariized on pages 4-5.
The opportunity capture waste heat is greatly enhanced with a CO2 price, and leading companies are identified based on reviewing 1,500 Western patents on pages 6-9.
The opportunity to eliminate flaring fully from the US with a CO2 price below $100/ton, including implications for oil producers, is presented on pages 10-11.
Further efficiency gains, such as preventing methane leakages, adopting more digital solutions, and electrifying frac fleets are presented on pages 12-14.