Embracing Energy Transition Challenges in R&D

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Editor's note: Public statements by panelists at the World Petroleum Congress have been edited for clarity. 

HOUSTON—Energy industry experts addressed concerns surrounding the energy transition and how it will affect company leadership, costs and revenue during a panel on Dec. 8 at the 23^rd World Petroleum Congress.

Frank Behrendt, chair of energy process engineering and conversion techniques of renewable energies with the Berlin Institute of Technology, moderated the “Driving Innovation: Key Challenges in R&D” panel comprising energy officials from France, Saudi Arabia and the U.S., who weighed in on how their companies are dealing with the issues of costs, resource allocation and collaborative efforts in R&D as they embrace the energy transition.

Despite the progression of the energy transition, some companies and industries have been hesitant to get on board with the changes. Pierre-Franck Chevet, chairman and CEO of IFP Energies Nouvelles, encouraged energy professionals to embrace the changes that the industry is facing and put in the work to be an example for other sectors.

“When we’re using the word ‘change,’ my feeling is not how I change myself. My feeling is we are the change—we, as an industry, and all of the challenges we are facing,” Chevet said. “But [we must do] the scientific and the technical work to put control of all of it and say, ‘OK, we are an example of innovation now.’”

Technology advances

Ashraf Al Tahini, manager of EXPEC Advanced Research Center and CEO of Saudi Aramco Upstream Technology Co., sees new and diverse technology development and investment as the clearest path to combating emissions.

“As long as we try to invest in technology, we really would have an impact on the technology and what we’re trying to achieve, and [especially] since the U.S. is basically one of the highest impacted when it comes to emissions initiatives,” Al Tahini said. “Not only that, but blue hydrogen is something that we are proud of, to be leaders in that. Building a hydrogen economy and technologies to enable that economy is very important.”

Michael Deal, vice president of research, technology and digital development with Exxon Mobil Upstream, emphasized the importance of electrification on the future of industry worksites and completions.

“Electrification provides a huge potential, and that’s a huge element of how we're able to do that,” Deal said. “What’s so important to keep in mind as you electrify—plus there’s the rigs [and] the completion of them—where that electricity comes from is critically important.”

Along with electrification, Carolina Dautriche, vice president of technology development with Schlumberger, acknowledged that digitalization presents companies with “more solutions than problems.”

“You get to [realize] that you also reduce the cost and carbon footprint,” Dautriche said. “And there's a dual development ... that has been used in early engagement with our customers, and that dramatically reduces the time needed to design, model, [et cetera]. You can improve your productivity. You can minimize the number of wells that you have to drill for your field and your equipment, hence, having an impact on your cost and carbon. There are plenty examples in digital that really make a life better.”

Although electrification and other forms of renewable energy are critical parts of the energy transition, Deal pointed out that the most likely outlook for the future of the sector will be a combination of several different forms of energy, both traditional and renewable.

“The way we look at it is it's going to take an entire mosaic of energy sources to produce that net-zero electricity, whether that's wind, whether that's solar, whether that's hydrogen, whether that's natural gas with CCS,” Deal said. “We have to keep that whole aperture open to think about resources and move toward electrification with net-zero plans.”

Guiding the change

The panelists agreed that strong but flexible leadership was required to guide teams through the “constant challenges” of the changing industry.

“We, as leaders, really need to adapt, and we need to be more active and plan to achieve our objectives,” Al Tahini said. “That is an example of how we faced change in the way that we do business, and it was time to respond and to adapt.”

“Resilience is a muscle,” Deal added. “Over my 25 years, what I’ve learned personally is resilience comes from knowing my own value system, what I stand for, my own philosophy and staying true to that. [Also] a really simple, clear understanding and articulation of the vision and vision of your organization, knowing what the organization is trying to accomplish. The third thing is network. Leverage your network. Ask for help. Reach out to others, because we're all in this together.”