Transforming the oil and gas industry to embrace the energy transition
Baker Hughes is in the process of reposition itself to fill a pivotal role the low to zero carbon transition. Committed to reducing emissions is their own operations the company is seeking to help the industry be an integral part of the energy transition.
Two years ago, the company laid in the groundwork to map its path to carbon neutrality, before the pandemic hit and the oil process crashed serving as a wake-up call to the majority of the industry.
“We are one of the first in the oil and gas industry to make a net zero commitment, in line with the Paris Agreement,” said Graham Gillies, Baker Hughes Australia New Zealand and Papua New Guinea vice president. Baker Hughes aims to reduce its Scope 1 and 2 emissions by 50% by 2030 and reach net zero by 2050.
Understanding the need for the oil and gas sectors to decarbonise, Gillies noted that it would involve ensuring assets become both more efficient and productive, while also deploying existing emissions management technology. The company will also ensure a positioning for new ventures including carbon capture utilisation and storage and hydrogen.
The latest compression technology provided by Baker Hughe to Qatar Petroleum’s North Field East project will assist in reducing approximately 5 per cent of CO2 per year.
Notably, Baker Hughes is also working with NOVATEK, who it Russia’s largest independent natural gas producer with the aim of blending hydrogen into natural gas liquefaction which in turn will reduce carbon emissions from LNG facilities.
Gillies importantly note the company’s energy transition and carbon reduction was in the works and discussed with customers prior to the pandemic, but openly admitted it was harder to sell back then.
“The path to net zero takes a whole-of-society commitment and execution to achieve the emissions reduction goals. We are working with oil and gas operators, industry groups, and local governments to align to this common goal- to that we can enable energy transition together,” said Gillies.