25 January, 2022 – Georgetown, Guyana – Last week ExxonMobil CEO Darren Woods announced formal plans for the corporation to achieve net-zero carbon emissions in categories 1 and 2 (see later) from their operated assets by 2050. With its development just starting, Guyana offers numerous opportunities for the corporation. This week President Dr. Irfan Ali addressed the issue at an Energy Chamber of Trinidad and Tobago, highlighting that achieving the Net-Zero target is imperative for the planet and more so for Small Island Developing States and Low-lying Coastal Nations.
The ExxonMobil Commitment to Net-Zero
ExxonMobil has produced a detailed ‘Advancing Climate Solutions 2022 Progress Report’ (ExxonMobil Climate Solutions Report ) that sets out how they plan to achieve ‘Net-Zero’ by 2050. A number of assets are specifically referenced, including Guyana:
Quoted from the report; “ExxonMobil’s deepwater oil and gas developments are being designed to perform in the first quartile for greenhouse gas intensity. Offshore Guyana, the Liza Unity floating production storage and offloading (FPSO) vessel was awarded the SUSTAIN-1 notation by the American Bureau of Shipping. It is the first FPSO in the world to achieve this recognition for sustainability of its design and operational procedures.”
In a 23 January Forbes article - ExxonMobil Formally Joins The Net-Zero by 2050 Bandwagon’ ( Forbes Article on ExxonMobil Commitment ) CEO Darren Woods is quoted as saying, “I think you’ve got to look at it in the context of the work we’ve been doing for some time now,” he said. “If you go back to 2018, we set emissions reduction objectives for 2020; we achieved those. In 2020, we set objectives for 2025, and we’re working with our facilities all around the world to put in plans to make those reductions...So, there are plans behind this ambition that take us clearly through 2030 and beyond.”
While ExxonMobil is later in making the commitment than some other international operators, the Forbes article makes an important point about the company.
From Forbes; “No one should doubt that the company, in its inimitable, engineering focused fashion, will meet these goals and establish new, even lower goals well in advance of 2050. That’s how this great American company has always performed, and that is not likely to change.”
In commenting on these developments, TOTALTEC CEO Lars Mangal noted, “If ExxonMobil sets objectives, you can be sure there is a sound scientific and engineering basis, with the necessary investment to deliver available. There are a number of companies that have been guilty of greenwashing over the years - going public before they were ready. Not ExxonMobil.”
A GHG Challenge for Guyanese Companies
At a just completed three-day conference themed ‘Can we achieve Net Zero by 2050?’, hosted by the Energy Chamber of Trinidad and Tobago…
President Dr. Irfan Ali challenged the attending leadership; “We should not be asking ourselves whether we can achieve Net Zero by 2050, but whether we can afford not to. The scientific community has made its predictions: life on the planet will become perilous should the rise in global temperatures not be checked. The target of Net-Zero by 2050 is therefore imperative for the survival of the planet.”
For Guyanese companies supporting the energy industry, there is an opportunity to demonstrate leadership as Category 3 GHG contributors within operator supply chains. There are three high-level areas to contribute;
For ExxonMobil and local companies to innovate in a greenfield environment to reduce greenhouse gas (GHG) emissions
For the Guyana government to guide in-country energy development to mitigate ExxonMobil category 2 emissions
For local companies to reduce what are ExxonMobil category 3 emissions as part of their supply chain.
Commented TOTALTEC CEO Lars Mangal, “Guyanese companies must step up with an approach similar to ExxonMobil - meaning plans, measurement, investment. By tracking and reducing their own category 1 and 2 greenhouse gas emissions they will be making a significant contribution to both our country and the operators working here. New businesses starting with a clean slate will have an advantage.”
Measuring Greenhouse Gases
The GHG Protocol dates to the late 1990’s and provides a framework and set of metrics that function as an accounting platform for measuring and managing the emissions of greenhouse gases. From the GHG website ( https://ghgprotocol.org/about-us ); ‘The first edition of the Corporate Standard, published in 2001, has been updated with additional guidance that clarifies how companies can measure emissions from electricity and other energy purchases, and account for emissions from throughout their value chains. GHG Protocol also developed a suite of calculation tools to assist companies in calculating their greenhouse gas emissions and measure the benefits of climate change mitigation projects.’
The protocol classifies GHG emissions in three scopes. A good reference is found at planA Academy ( https://plana.earth/academy/what-are-scope-1-2-3-emissions/ ), summarized here and detailed at the end of this article;
Scope 1 emissions are direct emissions from company-owned and controlled resources.
Scope 2 emissions are indirect emissions from the generation of purchased energy, from a utility provider.
Scope 3 emissions are all indirect emissions not included in scope 2 – that occur in the value chain of the reporting company.
Additional Material
Scope 1,2, and 3 Greenhouse Gas Emissions Detailed
Scope 1 emissions are direct emissions from company-owned and controlled resources. In other words, emissions are released into the atmosphere as a direct result of a set of activities, at a firm level. It is divided into four categories: stationary combustion (e.g fuels, heating sources), mobile combustion (vehicles), fugitive emissions (leaks, for example methane a key area to address in the oil industry), and process emissions (e.g. during manufacturing or chemical production). All fuels that produce GHG emissions must be included in scope 1.
Scope 2 emissions are indirect emissions from the generation of purchased energy, from a utility provider. In other words, all GHG emissions released in the atmosphere, from the consumption of purchased electricity, steam, heat and cooling.
Scope 3 emissions are all indirect emissions not included in scope 2 – that occur in the value chain of the reporting company, including both upstream and downstream emissions. In other words, emissions are linked to the company’s operations. According to GHG Protocol, scope 3 emissions are separated into 15 categories.
A graphic showing the 3 scope categories of greenhouse gas emissions, taken from planA Academy website, link above.
A listing of links referenced in the above news article.
https://corporate.exxonmobil.com/Climate-solutions/Advancing-climate-solutions-progress-report ExxonMobil The Advancing Climate Solutions - 2022 Progress Report website and the 2022 progress report ExxonMobil 2022 Climate Solutions Report
https://plana.earth/academy/what-are-scope-1-2-3-emissions/ The planA Academy website is one of many providing an explanation of Scopes 1,2,3 for Carbon Emissions, this with a nice figure which clarifies
https://ghgprotocol.org/ The Greenhouse Gas Protocol has been widely adopted, providing ‘standards, guidance, tools and training for business and government to measure and manage climate-warming emissions.’
https://www.forbes.com/sites/davidblackmon/2022/01/18/exxonmobil-formally-joins-the-net-zero-by-2050-bandwagon/?sh=721941bd5030 Forbes article titled ‘ExxonMobil Formally Joins The Net-Zero Bandwagon’
https://dpi.gov.gy/net-zero-emissions-by-2050-a-development-priority-for-the-region-president-ali/ Guyana Department of Public Information article ‘Net-zero emissions by 2050 a development priority for the region - President Ali
About TOTALTEC
TOTALTEC is focused on the success of the energy industry in Guyana for the benefit of the country, its people, and partner companies. It does this through three areas: people, partnerships, and facilities. Qualified and motivated Guyanese develop through the International Petroleum & Maritime Academy, where more than 600 have been trained. Partnerships prioritize products and services that are starting points to grow from, creating new Guyanese led companies, for example Jaguar Oilfield Services. Facilities include Guyana Shore Base Inc (GYSBI, also a partnership) providing a complete range of services to offshore operations. The TOTALTEC 94% Guyanese workforce includes 6 nationalities with over 160 years of international oilfield experience. https://www.totaltec-os.com
A graphic showing the 3 scope categories of greenhouse gas emissions, taken from planA Academy website, link above.