Global warming concerns leading to decarbonization is shifting energy from fossil fuels to renewable energy. The slides briefly touch on different ways of decarbonizing & alternative energy resources.

1. The Future of
Energy
Farida Ismayilova

2. About myself
Farida Ismayilova
Total >3 years experience as:
• Drilling Geohazards Specialist
• PPFG Specialist
Graduate of Azerbaijan State Oil and Industry University
Master’s & Bachelor’s degree in Petroleum Engineering
Notes:
Questions during the presentation

3. Agenda
✓Paris agreement
✓Renewables vs fossil fuels
✓Transformation of oil & gas business

4. • The Paris Agreement is a legally binding international treaty on
climate change.
• It was initially adopted by 196 parties in Paris -effective since
2016.
• Its goal is to limit global warming to well below 2, preferably to
1.5 degrees Celsius, compared to pre-industrial levels.
• The aim is reducing greenhouse gas emissions as soon as
possible to achieve a climate neutral world by 2050.
Paris agreement

7. Terms you will frequently hear
'Net zero' refers to achieving an overall balance between emissions
produced and emissions taken out of the atmosphere.
'Dual challenge' refers to trying to meet increasing energy demand of
the world while reducing emissions of green house gases.

8. Companies committing to net zero
BP aims at net zero across BP’s operations on an absolute basis by 2050 or
sooner.
Schlumberger is next with a target to reduce emissions by 30% by 2035.
Baker Hughes remains on track to reduce its carbon equivalent emissions
50% by 2030 and to achieve net-zero carbon equivalent emissions by 2050
Halliburton will submit targets in 2021
ExxonMobil and Chevron declined to set long-term emissions reduction
targets, saying they are not useful in a global context. They have shorter-
term targets to reduce methane & flaring,

9. Energy business is changing
COST
ENERGY
produced
CO2
emission
COST
ENERGY
Before Becoming
Note: in the future additional cost/tax will be implemented for amount of emissions

10. Achieving goals
Optimizing operations & equipment
Selling high emission assets if necessary
Diversifying portfolio – becoming an energy company, not just oil & gas
Increasing investment in low emission business - renewables

11. Advantages of fossil fuels
High profit margins
High energy when burnt
Existing infrastructure
Cheaper energy
Raw material for processing
But the climate change, requirements and regulations will demand
a transition in business and skillset

12. Challenges on the way
Increasing energy consumption to meet
Low profit margins of renewables compared to lower cost
production from existing oil & gas infrastructure
Entering new business for established oil & gas companies

14. The Rapid Transition Scenario (Rapid) posits a
series of policy measures, led by a
significant increase in carbon prices.
The Net Zero Scenario (Net Zero) assumes
that the policy measures embodied in Rapid
are both added to and reinforced by
significant shifts in societal behavior and
preferences.

15. Renewable
energy
through
years
Exajoule =
1018 (one
quintillion) joules

16. 76% of the world’s
renewable energy
consumption in 2019.
Leaders in renewable
energy consumption &
production

17. The biggest 5 renewables projects

18. Different energy sources
Let’s compare them in a board game format
Purchase Cost:
How much does it
cost up front to
build/purchase?
Annual Cost:
How much does it
cost each year to
run/operate?
CO2 emissions:
How much CO2
does it produce
each year?
Type:
What primary
energy resource
does it use?
Size:
How much
energy does it
produce?

19. What differences do you see in
cost, energy produced, CO2?
OIL 95
9
1.6

20. Problems with renewables 1
INTERMITTENCY
Wind power is only generated when it’s windy, solar power is only
generated when it’s sunny. This creates several fundamental issues.
SPACE & EFFICIENCY
They can be inefficient. That’s why we need huge solar farms and
hundreds of wind turbines and massive biocrop fields.

21. Problems with renewables 2
COST
The sun, the wind, and water currents are all free. But in reality, the
initial outlay can be huge, and the continued costs can be far more
than you might expect.
ENVIRONMENT & CLIMATE CHANGE
What is the carbon footprint of building a wind turbine, or
transporting biofuel, or disposing of a defunct solar panel? And
what is the impact on the local environment?

22. Interesting facts
• China is again the major
manufacturer for renewables – for
example solar panels.
• There is work going on in Singapore
to produce electricity from shadows!
• Exploiting the contrast between
bright spots and shade to create a
current that can power small
electronics.
• Can be used in overcrowded cities,
on skyscrapers and etc.

23. Energy from Hydrogen
ENERGY CARRIER
Hydrogen is an energy carrier, not an energy source and can deliver or store a
tremendous amount of energy.
Hydrogen can be used in fuel cells to generate electricity, or power and heat. Today,
hydrogen is most used in petroleum refining and fertilizer production, while
transportation and utilities are emerging markets.
USES FOR HYDROGEN
Hydrogen is a clean fuel that, when consumed in a fuel cell, produces only water,
electricity, and heat. Range of use —transportation, commercial, industrial,
residential, and portable.
Hydrogen and fuel cells can provide energy for use in diverse applications: systems
for storing and enabling renewable energy; portable power; auxiliary power for
trucks, aircraft, rail, and ships; specialty vehicles such as forklifts; and passenger and
freight vehicles including cars, trucks, and buses.

24. Hydrogen fuel cell
Hydrogen fuel cells
produce electricity by
combining hydrogen and oxygen
atoms.
The hydrogen reacts with oxygen
across an electrochemical cell similar
to that of a battery to
produce electricity, water, and small
amounts of heat.
Many different types of fuel cells are
available for a wide range of
applications.

25. Need for
Solar/Wind energy

26. Storage
needs gridding system to
store and distribute
Space
Onshore installations
require land
Cost
of equipment & energy
production is high
Solar/Wind energy challenges

27. Geophysics in determining where to put wind farms
Gas risk – no shallow gas below or near
Slope stability
Geotechnical properties
Similar to assessments prior to platform installation
Geoscience in offshore wind energy

28. Carbon Capture Utilization and Storage

29. Skills in oil & gas have a place in the future

30. Demand – a nearby business producing a lot of
greenhouse gasses that is ready to pay for injection
Government support – regulations, lower taxes to make
it profitable and attractive for investors
Finding a reservoir with a seal on top to inject – good
parameters, away from highly-populated areas for safety
Drilling wells to inject, predicting fluids behavior and
contacts through time
geoscience, drilling, completion, reservoir engineering
CCUS requirements

31. Oil and gas will continue to be the main source of profit for
companies (due to high profit margin) in upcoming 10-20 yrs.
Companies will invest higher portion of income to renewables
rather than exploration of new fields.
Oil & gas skills will still be in demand in projects like CCUS,
offshore wind farms & etc.
Early adopting skills and understanding of energy transition
can give you competitive advantage in the future.
Conclusions

32. Resources
Denmark Technical University –
• Wind energy
• Introduction to solar cells
• Organic Solar Cells - Theory and Practice
Follow energy news

33. Thank you!