While she agrees that Guyana must fast-track the development of its oil resources, Iman Hill, Chief Executive Officer (CEO) of the International Association of Oil and Gas Producers (IOGP), is urging authorities to put systems in place to ensure the “cleanest barrels” are produced.
During her presentation at the opening of the Guyana Basins Summit last week, Hill said, “We must do everything we can to mitigate emissions such as clamping down on methane, reducing flaring, and investing in all the technologies that allow oil and gas to play a role in a world that is charting its path towards net zero.”
Hill noted that Guyana, one of the newest and most exciting producing provinces of the world, must also strive to create a new normal. She called on authorities to only explore and produce new oil and gas where they have assessed every opportunity to attach an integrated carbon solution to it – whether that’s Carbon Capture and Storage, hydrogen, or some other relevant option.
The Petroleum Engineer said this will mean considering decarbonisation as a norm and including such a theme as part and parcel of investment decisions.
“That might be a tall order and I appreciate it’s not fully within our control. It would require support from governments and partners. I say this because I believe it is key to our industry fulfilling its role in the energy system of tomorrow,” expressed Hill.
The presenter asserted that the industry has an obligation to merge considerable know-how, skills, innovation, technology, and investment power to create a sustainable world for future generations. If everyone pulls together, including oil and gas producers, Hill is optimistic that the world can find the right path and have a successful industry.
Importantly, the Guyana government has already demonstrated its intention to push for responsible oil production practices, in line with its emission reduction strategy. For example, the Environmental Permit that was issued for the US$10 billion Yellowtail Project, requires ExxonMobil to provide Guyana with a roadmap for emissions reduction along with an examination of the potential and feasibility of Carbon Capture Utilisation and Storage (CCUS) technologies.
Such requirements are also expected to characterise the permits for future projects to ensure the State’s emissions reduction plans and policies are complied with.
The Environmental Protection Agency, the chief regulator of the sector on these matters, has also beefed up its capacity to monitor the release of emissions by all offshore operators.