The Future of Hydrogen and Carbon Capture in Oil and Gas Decarburization

Purpose: This research examined and assessed two primary methods of emission reduction in the energy sector: hydrogen technology and carbon capture and storage (CCS). Concerns encompass issues related to demand and supply, including elevated production costs, storage limitations, and insufficient infrastructure for green hydrogen technology. Methodology: This research examined the influence of policy and regulation on the decarbonization of the oil and gas sector, employing secondary research or desk-based research as its methodology. Data sources were from academic institutions, prominent corporations, and various government entities. Academic databases such as Google Scholar, JSTOR, ScienceDirect, and Springer offered peer-reviewed literature on energy policy, climate change legislation, and decarbonization technology. Findings: It is found out that CCUS is a vital component in reducing emissions in oil and gas operations and is incorporated into policies as a strategic measure. This greenhouse gas and the study aim to demonstrate that CCUS may potentially capture up to 90% of industrial CO₂ emissions; however, the associated costs and the underdeveloped infrastructure have impeded progress. The implementation of CCUS has been more prevalent in industrialized nations than in developing ones; therefore, it is understandable why the latter encounter obstacles such as financial constraints or a lack of policies. Emerging methods like Direct Air Capture (DAC) represent recent advancements in addressing legacy emission challenges; nonetheless, it is imperative to lower costs and improve technology. A larger quantity must be implemented, and additional resources must be supplied by worldwide governments to incentivize widespread use of CCUS. Unique Contribution to Theory, Practice and Policy: Regulatory measures are the primary catalyst in the decarbonization process within the oil and gas sector. Measures that encompass carbon pricing, emissions trading systems, and governmental incentives that have augmented investment in low-carbon technologies are advised; however, enforcement varies by region during the implementation of these schemes. It is imperative to elevate policy standards, control the transparency of initiatives, and foster collaboration to facilitate transformation. Future research should concentrate on the synergy of an optimized combination of hydrogen and carbon capture, utilization, and storage (CCUS), along with pertinent policies, to provide a coordinated optimal strategy for cost-effectively assisting the energy industry in its decarbonization efforts.