Editor's note: This article first appeared as part of a NOIA special section in the March-April issue of Offshore magazine. Click here to view the full issue.
By Erik Milito, President, NOIA
OTCbrings together the cutting edge in innovation and technology for offshore energy. Thousands of companies come together under one tent and share familiar themes of how they are leaning into the energy transition and finding ways to reduce emissions. The world should celebrate the remarkable vision of the future that energy companies are building today.
While there are many familiar faces at OTC, new themes and focus areas can be found throughout the conference. Focal points with names like the OTC Energy Transition Pavilion and the OTC Offshore Wind Lounge would have been novel concepts just a few years ago. Today they are simply a reflection of the offshore energy space. The energy transition – or addition – is ongoing, and offshore energy companies are leading the way.
The National Ocean Industries Association (NOIA) recently released its third Environmental, Social, and Governance (ESG) report, NOIA ESG Network 2023 Report: A Focus on Emission Reductions. As reflected by its title, the report includes sixteen case studies of emissions reductions from NOIA members. Importantly, the case studies do not come from just one industry segment – they represent virtually the entire offshore energy supply chain.
The NOIA ESG report underscores the boundless creativity companies apply towards emission reductions. From new low-emission fuel additives for drillships; to enhanced compressors on offshore platforms; to new connection systems for subsea jumpers; to the electrification of production systems, there is determined and measurable progress in reducing emissions from operations that already have a low GHG footprint.
The American offshore is producing more energy with a smaller footprint and lower emissions. The carbon intensity of US Gulf of Mexico is one half of the intensity of other producing regions. To put it another way, without US Gulf of Mexico oil and gas production, global emissions would actually increase. Likewise, 18 deepwater U.S. Gulf of Mexico facilities, which equate to about the physical size of only nine city blocks, produce about the same amount of oil as the entire state of North Dakota.
As reflected by OTC and demonstrated by NOIA members on a daily basis, the offshore energy sector as a whole operates in a manner that is enabling the low carbon energy transition. The lines between “oil and gas” and “renewable energy” are overlapping at a rapid rate.
The offshore oil and gas industry helped build the first US offshore wind farm offshore Block Island, Rhode Island. The synergy between offshore oil and gas and wind is beneficial to everyone. The offshore oil and gas industry is now involved in other wind projects up and down the Atlantic Coast.
New offshore wind projects under development dot the US East Coast and the first lease sales have been held along the Pacific Coast. Expanded American offshore wind development could spur $120 billion in new investments.
Similarly, carbon sequestration is an innovative approach to mitigating greenhouse gas emissions, and it is a critical tool for achieving climate change ambitions and goals that have been established by diverse stakeholders around the world.
With vast geologic prospects for CO2 storage, the US Gulf of Mexico could very well soon be the leader in CCS. The region benefits from having an extensive and established energy infrastructure along the Gulf Coast and throughout the outer continental shelf; a proximity to industrial centers for capturing emissions; and an assessable engineering and energy knowledge base and workforce, along with associated RD&D capabilities. Early projections show that 50 million tons of CO2 annually could be stored beneath the Gulf of Mexico by 2030, more than all the CCS currently operating globally.
The success of the offshore energy sector means that all forms of energy can be produced in a reliable, responsible, and affordable manner. Conversely, removing or restricting investment opportunities for the offshore oil and gas sector would eliminate a key source of engineering expertise, not to mention RD&D funding that can engineer, scale, and deploy the solutions to many of the technical challenges currently associated with decarbonization efforts. The success of these decarbonization efforts depends upon continued revenue generation from the oil and gas sector.
For more than 50 years, NOIA has worked tirelessly and successfully to advocate on behalf of the American offshore energy industry before policymakers and other stakeholders. From educating Congress, including testifying before committee hearings and engaging directly with members of Congress; to building the public record of our industry through regulatory engagement and media outreach; to holding industry-wide forums and workshops, NOIA has been the leading voice and advocate for the American offshore energy sector.
As we look around OTC this year, and as we see the energy challenges before us intersecting with the innovation and know-how of the offshore energy industry, NOIA continues to stand out as a credible voice in advancing the innovative solutions to deliver affordable, reliable, and low carbon energy that we all rely upon for a high quality of life.
