The growing expenses brought on by increasing demand for energy can be reduced by improving operational efficiency. The same is true for implementing alternative energy sources that increase product profitability while also resolving regional environmental issues and emission targets. A rising interest in incorporating renewable energy technology into oil and gas operations is being driven by this additional aspect. In many situations, incorporating renewable energy technology can also lower operating expenses because of the sharp drops in the cost of energy produced from renewable sources.
General Overview
The intricate process of refining oil necessitates huge amounts of capital expenditure and energy. Heating oil is used throughout the process of refining to dissolve carbon bonds and eliminate contaminants. The heating process and the production of steam account for over ninety percent of the energy used in refining. Burning onsite oil to process and refine petroleum accounts for the bulk of the energy required in the petroleum supply chain. Oil refineries may use renewable energy technologies to produce power, heat, and hydrogen, which is a component in the refinement procedure, as well as to run their operations. The surplus heat from oil refineries may potentially be used to create power.
Furthermore, downstream companies have taken the initiative to explore solutions to lessen their negative environmental impact while still being important energy suppliers and maintaining their competitiveness in challenging circumstances. Additionally, there is no singular quick approach that can be applied to every facility; instead, each asset or complex ought to be handled separately. All significant refiners, petrochemical, and chemical businesses should start by enhancing current operations through increased energy efficiency, dependability, and a reduction in existing emission levels from their current facilities. The Low-Hanging Fruit must be harvested first.
Potential demand can be met using the existing, scalable, and sustainable fuel technology. Operators must decide if it is preferable for them to be the front-runners or the first, quickest followers when it comes to deploying these new technologies. Each business must balance the benefits and drawbacks. It is a difficult effort for producers to reconcile protecting their company, being competitive, and trying to shift the downstream economy into a lower-carbon one.
The Hydrogen Hype
Consequently, hydrogen is used in numerous manufacturing processes at refineries. The hydrotreatment method uses hydrogen primarily to reduce the sulfur level of diesel fuel. Due to rising diesel fuel demand and stricter sulfur content limits, refineries are now increasingly in need of hydrogen. From 2008 and 2014, the amount of hydrogen utilized in the refining process grew by more than 50%. Although hydrogen is a by-product of the catalytic reforming of petrol, there is a greater demand for hydrogen than there is availability due to the refining process.
The requirement for hydrogen in oil refineries may also be met by electrolysis fueled by renewable energy. The cost of producing hydrogen using renewable energy sources is currently greater than using traditional manufacturing techniques. Nevertheless, hydrogen production could turn into a practical way to employ renewable technology to lower expenditures and lower emissions from oil and gas operations if renewable generating prices keep dropping and if limits on greenhouse gas emissions tighten.
In conclusion, potential energy consumption and greenhouse gases from operations are probably going to increase as oil and gas production moves to less traditional and poorer quality reservoirs. Additionally, oil and gas activities require a lot of energy, which may have an adverse effect on the environment. Minimizing the usage of fossil fuels in the generation of oil and gas is possible by incorporating renewable energy technology into the operations of these industries. This may decrease emissions, slash operating costs, and free up petroleum for higher-value purposes. In certain situations, integrating renewable energy sources might now offer a financially viable and ecologically responsible approach to satisfy operational energy needs. The advantages of renewable integration would keep growing if the price of renewable technologies kept dropping.
