Energy Efficiency as a Key Driver for Environmental Sustainability in the Oil and Gas Sector in Nigeria.

Abstract

Abstract Energy efficiency is concerned with the ratio of benefits gained from an energy related operation or activity in comparison to the actual energy utilized in deriving that benefits. In essence energy efficiency means doing more with less energy and it involves all aspects of energy production This study investigated energy efficiency as a key driver of environmental sustainability in oil and gas sector in Nigeria. Inefficiency in energy use has brought a significant negative impact by increasing cost of production and emission of green house gases. The implications of this is that the cost of oil and gas operations will be high thereby reducing the profitability and increasing emission by green house gases. The study methodology used literature review and case study of other countries with focus on the oil and gas sector. The findings revealed that energy consumption in oilfields found significant potential for reducing costs through energy efficiency improvements and contributing to climate change mitigation through reducing green house gases emissions. Moreover, reducing oilfield energy costs reduced the overall cost of oil production. Efficiency gains lead to reduced emission, simply changes to field equipment or operating procedures can yield major efficiency gains in oil and gas operation. It is concluded the adoption of energy efficiency in energy intensive sectors with huge carbon foot print such as oil and gas sector will serve to decarbonize the economy and accelerate the nation towards climate change mitigation and sustainable development. The key to increasing energy efficiency and reducing environmental costs is having the right drivers through education, policy and legislation, financial incentives and technological advances. These drivers need to be integrated with both management and technology of the business to drive down cost. It will be crucial for oil and gas companies to improve energy efficiency in all the production process.