Experts urge sustainable shift in oil, gas to curb carbon emissions

By Adewale Sanyaolu

Energy experts have made a compelling case for the adoption of cleaner technologies and sustainable practices within the oil and gas industry to effectively reduce carbon emissions, while maintaining its crucial role in global energy supply. The call was made during a webinar titled; “Transitioning Away from Emissions, Not Oil and Gas,” organised by the Nigerian Institution of Petroleum Engineers (NiPeTE) in collaboration with the Lagos Chamber of Commerce and Industry Professional Practice Group (LCCI PPG).

At the event, the experts emphasised that reducing carbon emissions does not equate to abandoning oil and gas assets, as is sometimes suggested. They argued that a more nuanced approach, focused on emissions reduction, could protect the global economy while supporting environmental sustainability.

Dr. Nuhu Habib, former Executive Commissioner for Development and Production at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), highlighted that although oil and gas production does contribute to greenhouse gas emissions, it is not the leading source globally. Habib stated that oil and gas are responsible for approximately 15% of industrial emissions and will remain pivotal to the global economy for the next 50 years.

“Abandoning oil and gas assets is not a sustainable solution,” Habib argued. “The real challenge is addressing emissions from a broad spectrum of industrial activities, rather than singling out oil and gas production, which would have significant economic repercussions.”

Habib also raised concerns about the inadequate financial commitments under the Paris Agreement, particularly for African nations, where support for climate change mitigation efforts has fallen short. He called for more substantial international collaboration and genuine financial commitments to help developing countries transition to cleaner energy.

In his remarks, Mr. Gabriel Idahosa, President and Chairman of the Council of LCCI, expressed concerns about Nigeria’s significant contribution to carbon emissions, particularly through gas flaring and other petroleum activities. Idahosa underscored the need for innovative strategies to decarbonize the economy while safeguarding the growth and stability provided by oil and gas resources.

“Nigeria’s oil and gas sector remains a critical part of the economy, contributing around 90% of export revenues and approximately 60% of government revenue,” Idahosa noted. He also revealed that Nigeria’s CO2 emissions reached approximately 120 million tons in 2023, highlighting the urgent need for action to address the environmental impact of the nation’s energy sector.

While acknowledging the positive steps taken with the implementation of the Petroleum Industry Act (PIA), Idahosa advocated for additional measures such as carbon pricing, tax incentives for cleaner technologies, and stricter environmental regulations to encourage the adoption of sustainable practices.  He pointed out that these mechanisms would help create an enabling environment for the oil and gas industry to transition towards sustainability while maintaining economic stability.

Prisca Kanebi, National Chairman of NiPeTE, echoed the sentiments of her colleagues, stressing the importance of balancing global greenhouse gas reduction targets with Nigeria’s development needs. “We cannot ignore the role of oil and gas in our national development, but we must find a way to align our energy policies with global sustainability goals,” she said.

Kanebi also highlighted the need for continued investment in research and development to find innovative solutions that would allow Nigeria to meet both its development and environmental targets.

Adding to the conversation, Mr. Mohammed Malami, Planning and Commercial Research Officer at Gas and Power Investment Service, NNPC Ltd., emphasized the importance of integrating low-carbon technologies into the oil and gas sector. He pointed out that operational efficiency improvements and the strategic deployment of clean technologies could help reduce emissions without the need to entirely phase out oil and gas production.

Malami called for stronger policy support and collaboration between government and industry players to facilitate this transition. “Achieving a balanced energy future requires a holistic approach. Policy frameworks must support both the adoption of cleaner technologies and the continued relevance of oil and gas in meeting our energy demands,” he stated.

The experts reiterated that the focus should not be on eliminating oil and gas but rather on promoting sustainable practices that align with global climate goals. They called for concerted efforts from both the government and the private sector to create a cleaner, more sustainable energy future, while ensuring that Nigeria’s economic interests are safeguarded. With the right policy environment and collaborative efforts, the oil and gas sector can continue to thrive, contributing to economic development while minimising its environmental footprint.