Market Trends of Carbon Management System Industry
Oil and Gas Sector to Witness the Growth
- The Oil and Gas industry is expected to contribute significantly to market growth. As one of the largest and most carbon-intensive industries worldwide, the oil and gas sector is facing increased pressure to reduce its carbon footprint and transition towards a more sustainable journey.
- Furthermore, the growing number of oil and gas wells and rigs will likely support market growth. According to weekly data by Baker Hughes, in 2022, drilling for both oil- and natural gas-directed wells has increased in the United States. The number of natural gas-directed rigs reached 160 at the end of September, with an increase of 53, and oil-directed rigs reached 602, with a rise of 481 this year. With a growing number of rigs, oil and gas companies are expected to adopt reliable carbon management systems to monitor and report their carbon emission with regulatory compliance creating demand in the market.
- Digital technologies could benefit Scope 1 and 2 emissions as oil firms set more challenging targets for emissions reduction. Tracking harmful methane emissions from oil wells and pipelines is crucial, and machine learning helps refine energy use more efficiently. Drones, sensors, satellite, and camera data are also vital.
- Several companies are working on mitigating the carbon dioxide emissions of industrial operations and accelerating the transition to net zero. For instance, AVEVA is working closely with Aker Carbon Capture, that designs and builds facilities for companies in carbon-intensive industries, such as cement, steel, and oil and gas.
- Due to growing investor demand to reduce greenhouse gas emissions, more digital companies are releasing software that oil and gas producers may use to assess their carbon emissions. In March 2022, Schlumberger launched Schlumberger End-to-end Emissions Solutions (SEES). The company offers comprehensive services and leading-edge technologies designed to give operators a robust and scalable solution for oil and gas industries to measure, monitor, report, and eliminate methane and routine flare emissions from their operations.
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North America Accounts For Largest Market Share
- The launching of several Carbon Management Programme in North America represents region’s significant step toward making Airport Carbon Accreditation the global standard for airport carbon management. At the ceremony for the initiative's launch, Seattle-Tacoma International Airport received certification for the first time in North America.
- Several initiatives by the government regarding net-zero emissions are anticipated to fuel demand in the market. In response to government’s goal of net-zero emissions by 2050 the Department of Energy (DOE) in the United States launched Carbon Negative Shot, an all-hands-on-deck call for innovation in CO2 removal pathways that will capture carbon dioxide from the atmosphere and store it at gigaton scales for less than USD 100/net tonne of carbon dioxide-equivalent.
- The market demand is also increasing due to government measures to reduce energy emissions from several outdated public buildings. For instance, the 50 most energy-intensive buildings owned by the state and federal governments will have efficient and smart building technology installed thanks to a contract signed by the US General Services Administration with IBM Corporation.
- According to the Energy Information Administration (EIA), in 2022 industrial sector released 1,393 million metric tons of carbon dioxide into the atmosphere which was 1,383 million metric tons of carbon dioxide in 2021. The government focus on reducing carbon emission generated due to energy sector are likely to support the market demand positively in the coming years.
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