22 November, 2021
ENERGY EFFICIENCY/CONSERVATION IN NIGERIA
Energy plays a vital role in economic growth, progress and development, as well as poverty eradication and security. Future economic growth crucially depends on availability of energy from sources that are affordable, accessible and also environmentally friendly.
Energy remains an important factor in all sectors of any country’s economy, as it supports provision of basic needs such as cooked food, piped water, essential health care, educational aids, communication, transportation and lots more. A lack of access to energy contributes to poverty, deprivation and possibly economic decline.
According to Central bank estimate in 1985, Nigeria consumed 8,771,863 tonnes of oil which is equal to about 180,000 barrels of oil per day, and since then, oil consumption in Nigeria has increased drastically, therefore bringing to realization the need for Energy Efficiency/Conservation.
IMPORTANCE OF ENERGY EFFICIENCY/CONSERVATION
Oil and gas remain an important part of the energy mix, especially in developing regions. It has been and will continue to be essential for prosperity and economic development globally for decades to come and energy conservation and efficiency would contribute immensely to both environmental protection and energy security.
Energy efficiency and conservation can also extend the life of finite natural resources and help to maintain energy affordability for consumers by lowering investment and costs of operation for harnessing new energy resources to meet rising demand.
CHALLENGE
The production of energy from more sensitive and difficult environments is becoming increasingly complex. Oil and gas companies are responding by looking at where and how they do business and confronting a rethink of business models in a decarbonizing world.
The challenge for the oil and gas industry is to both engage and adapt to a changing policy and investment landscape, but also to evolve in ways which doesn’t only support but contribute and perhaps even lead efforts to decarbonize the energy system.
POSSIBILITIES
Where energy demand is growing rapidly, oil and gas companies can endeavor to support coal-to-gas switching and invest in infrastructure that enables electrification to meet end user demand and support lower GHG upstream operations. Companies can also focus on using renewable energy sources and new technologies not just as a hedge against demand risk or to decarbonize their production, but to leverage their expertise with
supply chains and market development to support low carbon energy deployment in the energy transition on-the-whole.
In order for oil and gas companies to be successful in their efforts—not only to survive the low carbon energy transition—but also to support and lead it, the following steps should be considered:
•Build strategies for low carbon business models that minimize carbon use while remaining profitable, and articulate these strategies clearly to markets and other stakeholders.
•Support the development of ESG metrics that are transparent, objective, and accessible to investors.
•Invest in the promising concepts of net zero emissions and the circular economy while adhering to the nationally determined contributions model of the Paris Agreement.
•Encourage the growth of international carbon markets through Article 6 of the Paris Agreement, and expand the possibilities for joint cross- border projects for emissions reduction.
•Develop a workforce strategy that leverages the above into restoring oil and gas as an attractive destination for younger talent concerned about the ESG footprint and stranded asset risk of the industry.
CONCLUSION
Taken together, the above steps can position the oil and gas sector to not just survive the low carbon transition, but evolve, thrive, and even perhaps lead the transition to an energy system which can simultaneously meet the 1.5 degree Celsius goal and moreover the energy demands of the future.
The baseline of existing skill sets and resources throughout the industry to mobilize new lower carbon forms of energy suggest that there may be opportunities for oil and gas companies.