Innovative Practice and Development Countermeasures of Oil and Gas Cooperation Along the Belt and Road with the Background of Carbon Neutrality

Abstract

Abstract Considering the current status of China's energy mix, requirements for the energy transition and the development level of renewables, oil and gas will play an essential role in China's long-term energy supply, with its proportion in the primary energy consumption accounting for around 30% until 2040. The goals of "carbon peak" and "carbon neutrality" put forward higher requirements for international cooperation in the oil and gas sector along the Belt and Road (B&R), together with low carbon development. Chinese state oil companies, represented by PetroChina, Sinopec and CNOOC, actively participate in the Belt and Road Initiative (BRI), collaboratively operating many world-class oil and gas development projects, as well as technological innovation and practice. The annual oil and gas equity production from these cooperation projects exceeds 200 million tons of oil equivalent, which weighs heavily in the international energy cooperation, and accelerates the energy transition. With the background of carbon peak and carbon neutrality, fossil fuels remain of critical importance to the current energy system. Cooperation in oil and gas along B&R faces unprecedented opportunities, multiple environmental supervision and carbon emission reduction pressure. In view of above situation, countermeasures to the development in oil and gas along B&R are put forward: 1) strengthen the cooperation and development in oil and gas along B&R to enhance the international energy cooperation, natural gas production and utilization, and accelerate the energy transition to diversify China's energy mix; 2) improve energy use efficiency and optimize energy use in exploration and development system, strengthen the construction of intelligent oil fields and shore power, and implement decarbonizing measures throughout the industrial chain to increase the pace and extent of energy conservation and emission reduction; 3) actively develop carbon-negative technologies and infrastructure, and promote carbon capture, use and storage (CCUS) application represented by carbon dioxide flooding, water alternating gas flooding etc., gradually shifting to a lower carbon energy system; 4) promote the integrated development of traditional resources and alternative energy, open channels of financial support, technology and talents, actively deploy new energy business, and coordinate the development of non-fossil energy industries such as solar energy and wind power.