The oil and gas industry can show leadership in solving the Energy Trilemma

OGCI Climate Investments is a $1 billion+ decarbonisation investor, formed in 2016 by the Oil & Gas Climate Initiative (OGCI), a consortium of 12 oil and gas majors accounting for around 30 percent of global operated production. Dr. Pratima Rangarajan, Chief Executive Officer of OGCI Climate Investments, spoke to Energy Connects on the importance of oil and gas companies being part of the global energy transition discussion, the need to decarbonise while delivering energy security and equity to a growing population, and OGCI CI’s participation at ADIPEC 2022.

In your opinion, what is the main challenge facing the energy industry in 2022?

The main challenge facing the world and the energy industry is the Energy Trilemma: energy security, environmental sustainability and energy equity. We should not focus on one at the expense of another. According to the UN’s Human Development Index (HDI), prosperity and wellbeing are clearly connected to the availability of energy, which means that providing energy security and combatting poverty are inherently interlinked. The Energy Trilemma is a complex, global challenge that involves balancing competing priorities and requires immense changes in physical and digital assets. It is an issue not just for the industry, but for the whole world.

How can energy companies better integrate into global discussions on tackling the climate crisis?

Solving the Trilemma requires technical innovation, infrastructure development and collaboration across industries and governments. The energy sector has a demonstrated track record of delivering on these types of projects. Energy companies need to be integrated into the global discussion so that they can bring their expertise, resources and global reach to accelerate decarbonisation. Solving the climate challenge is a complex task, and we don’t have much time. We will achieve much more by collaboration than by exclusion.

What does cooperation within the energy industry mean?

The energy industry is well known for working cooperatively even among competitors. A good example is the Safety Culture transformation, which the industry achieved via extensive collaboration both among participants and with regulators. Very much like the industry’s safety journey, climate action requires visible leadership, empowered employees and accountability within every function.

OGCI is such a consortium, where the CEOs actively lead the dialogue, with the aim of leveraging their collective strength and expanding the pace and scope of the industry transition to a lower-carbon future. OGCI has launched the Aiming for Zero Methane Emissions initiative this year. It calls for an all-in approach that treats methane emissions as seriously as the industry treats safety – aiming for zero and striving to do what is needed to get there. At ADIPEC, we look forward to industry participants joining us in this important mission.

Decarbonisation encompasses a variety of issues. What for you is the most important?

We must keep in mind that solving the Trilemma requires us to decarbonise while also delivering energy security and energy equity to a growing population. We need to prioritise immediate action on the low-cost solutions available today while working on the innovations needed for the more complex problems. For example, we can take immediate action on methane emissions reductions because the technologies are available and cost-effective today. Energy efficiency is another area where there is much immediate potential, but it does not receive enough priority.

As much as two-thirds of the primary energy we create is wasted across the energy, industry, transportation and built environments. If we could increase efficiencies in these systems, we could save energy and capital and reduce emissions. However, the focus on methane and energy efficiency won’t capture all greenhouse gases, and the world will need to invest in carbon capture, use and storage (CCUS), as well as develop alternative technologies – including renewables, hydrogen and direct air capture. At OGCI Climate Investments, we invest in methane, energy efficiency and CCUS, and we can assure you that the technologies exist and are cost effective. It is time to implement and scale.

How can the energy industry remain attractive to leading young talent?

The youth want to see our commitment to a world where they and their children can thrive. The Energy Trilemma is a real threat to their future, and our leadership in solving these challenges will attract and motivate the best and the brightest all over the world.