Meeting Increasing Demands for Upstream GHG Reporting – A Framework for the Drilling Industry

Abstract

Abstract This paper details the scope and framework applied for quantifying upstream Greenhouse Gas (GHG) emissions linked to offshore drilling operations. A step-by-step methodological approach is presented, comprising environmental impact modelling of drilling and rig operational activities through application of the life cycle assessment (LCA) methodology. The method aims to break down upstream emissions to a process level, showing that emissions can be evaluated to a greater detail level compared to what current scope 3 reporting levels offer today. Results from a North Sea drilling case study conducted in collaboration with Noble Corporation are used for showcasing the impact burden levels, challenges and prosperity of accounting, reporting, and tracking upstream emissions as a drilling contractor. A framework tailored to the drilling industry is presented, emphasizing how upstream emissions may be linked to drilling and rig operational processes, and how these emissions can be continuously reported and improved over time. A set of system boundaries for assessing scope 3 emissions are suggested, along with recommended emission calculation methods. The presented framework may serve as an alternate supplement to IPIECA's adapted version of the GHG Protocol's Scope 3 Standard, otherwise intended for the petroleum industry, and to IADC's industry guideline for ESG reporting.