BY EMMANUELLA ANOKAM
The global energy sector is experiencing a paradigm shift being driven by the urgent need for more a sustainable and low-carbon future. The energy sector is one of the largest and most important sectors of the world economy, accounting for eight per cent to 10 per cent of the world Gross Domestic Product (GDP).
It is second only to health care in size and is equally predominant in scope; there is no country on the earth that does not rely on the energy systems to power transportation, heating, cooling, services, and appliances.
Nigeria holds hydrocarbon reserves of 37.2 billion barrels of crude oil and 210.5 trillion cubic feet of gas Driving energy sustainability in the oil and gas sector involves implementing practices that minimise environmental impact and transition towards cleaner energy sources.
These include, improving freshwater usage, reducing methane leaks, and embracing renewable energy; streamlining processes, revitalising used oil and optimising data utilisation.
Additionally, the sector is increasingly focused on reducing greenhouse gas emissions and adopting environmentally responsible practices across their operations.
Climate change, dwindling fossil fuel reserves and rising energy demands necessitate innovative strategies to balance economic development with environmental stewardship.
In the light of the aforementioned, Mr Abdulrahman Mujinyawa, General Manager, Development and Subsurface Nigeria, Renaissance African Energy Company Ltd., underscored the need to do things differently by driving energy sustainability, through role of technology, supply chain and policies implementation.
Mujinyawa explained that technological advancements were in the fore front of sustainable energy solutions, enhancing efficiency, reducing emissions and improving operational safety.
“Digital transformation is a strategic enabler of efficiency and competitiveness in the energy sector cutting edge tech such as Internet of Things (IoT).
“Digital twins create virtual replicas of physical assets, allowing real- time monitoring and predictive maintenance,” he said.
He also described the Carbon Capture, Utilisation and Storage (CCUS) and Flare Gas Recovery and reduction initiative such as the ongoing Nigerian Flare Gas Commercialisation Programme (NFGCP) as a crucial technology in reducing greenhouse gas emissions.
Carbon Capture, Utilisation, and Storage is a process that captures carbon dioxide (CO2) emissions from industrial sources, either uses them in various applications (utilisation), or stores them safely underground (storage) to prevent them from entering the atmosphere and contributing to climate change.
On role of policy in driving sustainability, the expert said policies, industry regulations, and international agreements could shape the sustainability landscape of the oil and gas sector by setting compliance standards, offering incentives, and fostering investment.
He described government policies as catalysts for the transition to sustainable energy by establishing regulatory frameworks and aligning sustainability goals with economic and social priorities.
Mujinyawa listed key existing policies to include: The Petroleum Industry Act (PIA 2021): Environmental Impact Assessment (EIA) Act and National Oil Spill Detection and Response Agency (NOSDRA).
He, however, explained that in spite of strong policies, enforcement had remained a challenge due to corruption, weak institutional capacity, and political interference.
On supply chain, he listed procurement, logistics, operations, and waste management play critical role in determining the sustainability of the sector.
According to him, sustainable energy transition requires efficient and resilient supply chains that minimise waste, optimise resource use, and promote circular economy principles.
He argued that implementing responsible sourcing, digitalisation and low carbon logistics was crucial.
Mr Joseph Mordi, General Manager, Wells and Geoscience Operations, Shell Nigeria Exploration and Production Company Limited (SNEPCo), also underscored the need for achieving stability in the energy sector by leveraging AI machinery as catalyst for energy sustainability, towards decarbonisation.
More so, the Nigerian National Petroleum Company Limited (NNPC Ltd.) listed digitisation, automation, Artificial Intelligence (AI) and advanced analytics as critical aspects redefining the entire energy value chain.
Mr Udy Ntia, Executive Vice, Upstream, NNPC Ltd, gave insights.
He said that globally, upstream oil and gas companies were expected to invest more than 30 billion dollars in digital technologies in 2025.
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