IMP Identifies Key Points for Oil Industry’s Energy Transition
Florentino Murrieta Guevara, Director of Hydrocarbons Research and Transformation, the Mexican Petroleum Institute (IMP), discussed the need for the oil industry to adapt to the energy transition. Murrieta said that in 2022, 80% of the sources to produce power were fossil fuels, and only 10% came from renewable sources.
Murrieta explained that IMP is exploring key technologies such as zero-footprint fuels, CO2 capture and methanation, hydrogen and ammonia strategies as well as zero-footprint refineries to drive innovation and spur the adaptation of the oil industry, which will contribute to reducing the carbon footprint across the entire value chain.
Murrieta highlighted that five of the 17 plants at the Dos Bocas refinery have been equipped with IMP-developed technology to make the refining process more environmentally friendly. These solutions raise the quality of refined fuels and reduce the levels of harmful sulfur.
Both CFE and Pemex are actively involved in the energy transition, according to Murrieta, seeking solutions to reduce emissions. PEMEX is also monitoring methane emissions from nine platforms. Murrieta also hinted at plans for developing green hydrogen and renewable power projects as well as improving refining processes.
Haitham al-Ghais, Secretary General, OPEC, recently addressed the need to secure the energy supply for the next decade. He emphasized the importance of investment in oil to meet future energy needs while also calling for climate policies to be balanced and fair. Al-Ghais also underlined the need for an orderly and inclusive energy transition and the need for energy security.
US president Joe Biden acknowledged the need for oil for at least another decade. Experts believe that the energy transition needs to occur quickly but in an organized manner. For example, natural gas needs to move towards net-zero emissions. According to Ana Laura Ludlow, CCO, ENGIE, Mexico has a middle step towards net-zero emissions via the migration from other fuels to natural gas. According to the US Energy Information Administration (EIA), natural gas emits nearly 50% less CO2 than coal.
Furthermore, Shell’s spending on renewable energy has slowed down, while BP has reduced the pace of its planned reduction in oil and gas production. These moves signal a departure from the previous commitments towards a low-carbon future.
Recently, ClientEarth filed a lawsuit against Shell’s Board of Directors for “failing to manage the material and foreseeable risks posed to the company by climate change.” Shell said that its Energy Transition Strategy remains in line with the 1.5°C temperature goal set by the Paris Agreement. The strategy, aimed at making SHell a net-zero emissions business by 2050, has been described as "industry-leading" by the board. However, according to ClientEarth, this target covers less than 10% of the company's overall emissions.