The Path to Decarbonization

Panel moderated by Allyson Book, VP Energy Transition, Baker Hughes

What does “energy transition” actually mean? Is it the journey or is there an end game?

Mr. Brownstein said that it’s about both reducing emissions, primarily methane, now, as well as providing energy resources that don’t involve the combustion of fossil fuels at all. Ms. Boness, added that it’s important to keep in mind that we have a CO2 problem, not a fossil fuel problem, so we don’t end creating policies that are restrictive. Mr. de Leeuw said there’s a people/society element in here as well, that we need to get it absolutely right—do a fair, sensible transition so everybody comes out better.

Where are traps that we haven’t talked about?

Ms. Boness said that CCUS has to play a major role, and that the oil and gas industry is really the only player with the expertise, infrastructure, and capability to do CCUS at the scale that is needed.

Mr. Brownstein felt that carbon pricing is incredibly important. We added that the industry has been lagging behind and, in some cases, actually working against the development of good public policy to support our objective of getting to net zero by 2050—and that has to change. He’d also ask the industry to do is get better at assessing emissions, because they can’t properly manage what they can’t properly measure.

Do you think there are any good examples of companies that really have it right that you can point to

Mr. Brownstein said it’s clear that Baker Hughes and other companies are on the right track. But, as it is a diverse industry, for every OIC that’s taking the challenge seriously, there are many NOCs and independents who have yet to get engaged. So, it becomes our collective challenge to see that the entire industry goes on this journey.

Mr. de Leeuw said the UK’s destination is clear, and they’ve collectively developed a roadmap. They are, he emphasized, beyond talking about it, that companies have money on the table and they’re making it happen. Mr. Newell agreed that the expression of commitment from corporations is a very, very important first step, but that it’s not enough—to enable companies to compete effectively in providing low carbon services, we need to create value for that.

Closing thoughts

Ms. Boness was concerned we’re headed toward regional solutions. Unlike previous transitions driven by efficiency and economics, she feels this one is driven by a change in people’s value measures; and that we still have a long way to go in understanding how they will impact the oil and gas industry.

Mr. de Leeuw said we have to make sure that the transition works for all populations. If we don’t, he cautioned that we’ll end up with “energy haves” and “energy have-nots” which is not a sustainable outcome.