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ACCELERATING THE ENERGY TRANSITION:

CAN WE ENSURE EXISTING RESOURCES ARE SUSTAINABLE?

March 25, 2024

There's growing interest in repurposing existing oil and gas infrastructure for a low-carbon future. This makes perfect sense – leveraging existing platforms and pipelines can significantly reduce costs and environmental impact compared to building entirely new facilities.

However, this exciting potential comes with significant challenges. The key question is: can we ensure the existing infrastructure is robust enough to handle this transformation?

Firstly, the infrastructure needs to be appropriately maintained. The volume of non-SECE maintenance backlog across the basin raises considerable concern about its suitability for future use. Repurposing requires a healthy foundation – poorly maintained assets are unlikely to meet the demands of new low-carbon operations.
 

Secondly, the transition to a low-carbon role needs to be considered early in an asset's lifecycle. This isn't just about extending its lifespan; it fundamentally changes how maintenance and integrity decisions are made. For example, acceptable levels of pipe wall thinning might be higher if the pressure demands are lower. Similarly, overhauls planned for cost-saving reasons might be unnecessary if the asset has a different purpose.
 

The oil and gas industry is often criticised for its short-term focus – annual production targets and operating expense (OPEX) goals can overshadow long-term planning. In this context, there's a genuine risk that the industry prioritises short-term gains over the future viability of repurposed infrastructure. Sacrificing long-term viability for immediate production targets could ultimately cripple the industry's ability to contribute to a low-carbon future.

The path forward requires a delicate balancing act. Repurposing existing infrastructure offers a powerful tool for a low-carbon transition, but only with robust maintenance practices and a long-term vision. The industry must move beyond short-term pressures and invest in the future by ensuring existing assets are strong enough to become the pillars of a low-carbon energy landscape.