Innovation Tagline: Using the blockchain to create supply chain incentive incentives to help reduce up to the 1 Gt CO2e of Greenhouse Gas emissions per year. emissions
Project Keywords: #NFT #TokenEconomy #ValueChain #CarbonEmissions #Flaring #Scope3
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While the world tries to avert the worst of climate change, most scenarios still show the oil and gas industry remaining a significant part of the global energy system for several decades to come. During this transition, however, we must do everything possible to reduce the climate impact from continued use of fossil fuels.
A top priority for doing so is to reduce the amount of methane that is leaked and flared during the production of oil and natural gas. Flaring and venting of natural gas at oil wells happens because methane is Methane trapped in the geological formations of the oil wells. During the extraction of oil and gas , it must be removed to keep the well operating safely. In some wells, this methane is captured and sold profitably as natural gas. In other wells, especially those located in remote areas, the lack of pipelines or wells, is often flared or vented. This is done as a safety measure, but also simply because infrastructure is not available to gather, process and distribute the methane as natural gas for a profit. This is often the case in remote and undeveloped areas where there is a lack of pipelines and other infrastructure to transport the natural gas makes it uneconomical to do so. In those cases, it is simply burned (flared) or, worse still, released directly to the atmosphere.
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In recent years, there has been a concerted effort on the part of The Environmental Defense Fund, major oil companies and the Oil and Gas Climate Initiative, international organizations such as the United Nations Environmental Program and the World Bank, and institutional investors to reduce methane leakage and flaring. Nevertheless, this remains a difficult goal to achieve because of a lack of data and proper financial incentives. Many oil wells do not have equipment to record how they are handling excess underground methane, and many companies do not report on the level of the methane that is released. As a result, even though methane is each year a significant amount of methane is wasted through venting, leakage and flaring, rather than being used as a valuable commodity (natural gas), it is not possible to estimate . measuring the value that could be captured from the leaked or flared methane and therefore of the wasted methane is needed to determine the returns from investing in infrastructure to capture themit.
Fortunately, there has been progress on this front recently: EDF 2021 has urged . EDF (2021) is urging investors to engage energy companies to improve flaring transparency, requiring collaboration to establish clear metrics. Several new data sources ranging from satellite imagery to instrumentation at oil wells will be coming online to improve the datamade available. Independent tracking tools are being introduced ( for for waste emissions). Converting this data into useful fuel value chain metrics require requires integration with production data. Flaring Monitor, an open source project, has made some progress on this, and will provide key part of our solution to bridge reporting silos for waste emissions. (this effort could align with the World Bank's Imported Flared Gas Index).
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