By Engr. Justice O. Derefaka

Although technological breakthroughs have produced a few significant changes in exploration, development, and production in the previous few decades, the oil and gas industry is one of the most conservative when it comes to implementing innovations. Many of today’s organizations employ technology to automate and re-engineer their operations. Companies have been able to streamline their processes and boost scaling capabilities thanks to technology innovations. Technology is another word for innovation, and in business, innovation refers to better service, products, or changing service needs quickly.

Technology is necessary for daily tasks and, when used effectively, may assist organizations in growing and succeeding. Smart businesspeople see technology as a method to not just automate procedures but also to create new opportunities. While technological advancements continue at a rapid pace, they offer a variety of opportunities for business executives to flourish. It all relies on how technology is used and how well it is integrated to ensure a smooth growth.
The focus of this article will be on innovation in the global energy system. Because the world is going through a period of energy transition. And innovation will be crucial in addressing the transition’s numerous hurdles. In addition, there is one big and pressing issue on which I’d want to concentrate. And that is meeting rising demand for energy while reducing greenhouse gas (“GHG”) emissions.

It is unavoidable that people and economies will require more and more energy. According to the International Energy Agency, worldwide energy demand is anticipated to increase by close to 40% by 2040. To meet this need, several sources of greener energy will be required. Fossil fuels currently account for 80% of worldwide energy production. And, as I have said many times before, take it or leave it, oil and gas will be necessary for decades to come.For decades, developed economies around the world have benefited from both cheap domestic energy and fossil fuel export profits. This resulting export revenue is a clear economic advantage of fossil fuels over domestic renewable energy.

According to Our World in Data cited in African Energy Review 2021 report, Africa is responsible for only 3% of global CO2 emissions. Africa, on the other hand, is being swept along in the global energy revolution and is increasingly facing the same net-zero policy pressures as developed economies like the EU, which accounts for 33% of global CO2 emissions. While the importance of global decarbonisation and a healthy planet cannot be overstated, the path to net zero highlights the danger of further entrenching economic winners and losers. Even though Africa is home to 17% of the world’s population, it only receives 4% of global power supply investment. Only 58 percent of Africa’s population has access to power, and two-thirds of the continent’s existing grids are considered unreliable. Except for South Africa, approximately one billion people in 48 African countries share roughly the same generation capacity as Germany, which serves 83 million people.

By 2040, Africa’s population would have surpassed 2 billion people, posing new concerns. Among the ten largest countries worldwide, Nigeria is growing the most rapidly. Consequently, the population of Nigeria, currently the world’s 7th largest, is projected to surpass that of the United States and become the third largest country in the world shortly before 2050. Africa’s generation capacity will need to be doubled by 2030 and multiplied fivefold by 2050 if it is to meet its SDGs on energy. If not addressed, the energy demand-supply mismatch would have a negative impact on Africa’s standard of living and will stifle economic growth.
The world has a major task in moving from a distant possibility to an actual reality by 2050. As economies recover from the 2020 pandemic-induced shock, global carbon dioxide emissions are already sharply recovering. It is past time for governments to act, and act aggressively, to speed up the transition to renewable energy. For Africa, that transition must happen at our pace even as we seek to harness our abundant natural resources to take our people out from abject and energy poverty (ref UN’s SDGs 1 and 7), even as oil and gas continue to play a role in the global energy mix, and Nigeria leveraging on new, innovative, and disruptive technologies to reduce carbon emissions and costs to compete for that market.

While preparing for the energy transition, His Excellency Chief Timipre Sylva, the Honourable Minister of State for Petroleum, has stated that the Federal Government of Nigeria (FGN) is committed to the development and monetization of our oil and gas resources. Indeed, according to OPEC’s current World Oil Outlook, oil will continue to be in high demand until at least 2045 – 2050. As a result, every effort must be made to optimally develop our oil and resources and, more crucially, to seek for alternate sources of investment considering certain participants in the global financial ecosystem refusing to fund the development of fossil fuels.
Lending credence to the Honourable Minister of State assertion, the Chief executive officer (CEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kolo Kyari, posited that oil and gas will continue to be a critical component of the world’s future energy as global energy consumption rises from 2018 levels to over 50% by 2050.
I also understand that renewables play an important role, but they can only do so much. Other energy sources will be required due to issues like intermittency, availability, and storage. But then let us be clear that renewable energy sources will be unable to meet global energy demand because of economic growth and a growing global population, according to the International Energy Agency’s World Energy Outlook.

This does not rule out the possibility of addressing climate change. It is possible and necessary to address it.
Switching from coal to gas is one way to do this: compared to coal, gas produces half the carbon dioxide and a tenth of the air pollutants. It is also critical to continue developing initiatives that capture CO2 from industrial sources and store it deep below. Significant expenditures will be necessary to create carbon capture technologies and improve overall energy efficiency to minimize world emissions.
Another step is to put in place stable systems that put a price on carbon dioxide emissions from industry. Gas and carbon capture and storage, as well as other low-carbon technologies, need to be promoted by such systems.

Africa In Darkness with a growing world’s population

Picture Depicting The Goals of
The Paris Agreement

As stakeholders, we must make several judgments as our energy system evolves this century. Every country faces its own set of difficulties and priorities. Some will move more quickly and play a larger role in meeting rising demand while reducing greenhouse gas emissions than others.
According to the African Energy Review 2021 report, achieving global net zero by 2050 will cost up to $130 trillion, making it the single largest global development opportunity. For those that are unable to make the change, it will be a massive disruptor, with the potential for major stranded assets all over the world. A fundamental question that has yet to be answered is whether Nigeria, and indeed Africa, will benefit from an equitable share of global investment and growth, or will continue to fall further below global standards as specified in the Sustainable Development Goals due to a lack of economic strength.
Luckily for Nigeria, the European Union has proposed labelling natural gas as a ‘green energy’ source, a development that could translate into huge economic value for Nigeria. Following the United Nations Climate Change Conference in Glasgow in 2021, where governments stated a wish to cease funding for fossil fuel projects, Nigeria and other gas producers have been campaigning for gas to be included as a clean energy source.
Natural gas, while a fossil fuel and often seen as a dirty energy source, is one of the cleaner fuels and is abundant in Nigeria and throughout Africa. According to Statista, the continent’s proven gas reserves are over 624 trillion cubic feet.

Urbanisation Is Fast Accelerating

According to the African Energy Chamber (“AEC”), an African energy policy think tank based in South Africa, the proposal by EU will pave the way for new European investments in natural gas in Africa, allowing Europe to unlock billions of euros in finance and sustainable energy funds to support gas as a transitional energy source.
Because the idea that natural gas can be used as a transitional energy source has long been pushed by African states, the AEC hailed the EU’s proposal as a watershed moment that justifies a hopeful view for an inclusive energy transition for Africa.
The current Western pressure to adapt to cleaner energy systems, according to the chamber, has been exclusive in its acknowledgment that the change may vary in shape and timing from one region to the next.

According to NJ Ayuk – executive chairman of the African Energy Chamber “The demonization of Africa’s gas business must end, and investments must flow into the sector,”. While we continue to work together, it is critical that the oil and gas industry invests in lowering carbon emissions throughout the gas value chain.”
According to Ayuk, achieving sustainable development and eradicating energy poverty will need increasing gas in Africa’s energy mix, which will give us a fighting chance to lower the continent’s carbon footprint, even if we still account for less than 4% of world emissions.
And so, what about Nigeria, for example? In this energy transition, what function will it play?

“The demonization of Africa’s gas business must end, and investments must flow into the sector,”. While we continue to work together, it is critical that the oil and gas industry invests in lowering carbon emissions throughout the gas value chain.

Four megatrends are shaping the Energy Industry

Without a doubt, Nigeria is on the verge of an energy transformation, which will take a generation to complete, roughly between now and 2060. It is the world’s largest shift of this magnitude in generations. Transition Pathway — a combination of technology, investment, corporate strategies, and government policy that would allow Nigeria to transition from its existing energy system to a low-carbon energy system in the coming generations. Nigeria, which is heavily reliant on oil and gas, is embracing this transformation as a game-changer. This move has the potential to alter how you turn on the lights, cool your home, and commute to work, as well as the type of work you do once you get to the desired destination.

This is a significant change. And it provides a tremendous opportunity for Nigerians, as we know it can help us build a better country, avoid the effects of climate change, and redefine Nigeria’s place in a changing world, with our abundant natural gas playing a critical role within that construct.
The need for a new energy vision in Nigeria is driven by the demand for clean and efficient energy to power our homes, companies, and transportation systems, as well as the surge and wave of technological innovation underway globally in response to that same demand that drives the need for a new energy vision in Nigeria.
Nigeria has already made strong commitments to embrace this transition, pledging to significantly reduce its greenhouse gas emissions under the Paris Agreement on Climate Change, agreeing on a plan, and establishing the National Council on Climate Change (“NCCC”), which will have the power to make policies and decisions on all matters relating to climate change in Nigeria. Furthermore, President Muhammadu Buhari signed into law the Climate Change Act, 20211 (“the Act”), which was approved by the National Assembly in October 2021, only a week after COP26, where Nigeria committed to attain net-zero emissions by 2060. The Act aims to establish a framework for achieving low GHG emissions and mainstreaming climate change initiatives into national plans and programs, as well as demonstrating Nigeria’s commitment to the global climate change and energy transition agenda.

According to the Act, the NCCC would also work with the Federal Inland Revenue Service (FIRS) to design a carbon tax mechanism in Nigeria. The Act also propose that the proceeds from the carbon tax, as well as emissions trading and other sources of funds, be utilized to fund the Climate Change Fund.
The Climate Change Act is the main statutory framework for Nigeria’s energy transition path, as it prescribes sectoral and cross-sectoral strategic actions for the management of climate change activities in the country, and it aims to provide a plan for achieving low GHG emissions, inclusive green growth, and long-term economic development.
The Act mandates that all Federal Government ministries, divisions, and agencies (MDAs), as well as public and private enterprises in Nigeria, create and execute mechanisms aimed at promoting a low-carbon, environmentally sustainable, and climate-resilient society.

This may sound like wishful thinking, but the Climate Change Act of 2021 offers the broadest agreement our country has ever reached on climate and energy concerns. These obligations, together with the current shift in the global marketplace for energy and other resources, require us to take immediate action to transform our energy systems so that they can satisfy changing requirements at home and abroad. Little wonder Mr. President during the “Decade of gas” declaration in 2021 said and I quote “When we declared 2020 as “The Year of Gas” in Nigeria, it was a bold statement to demonstrate our Administration’s resolve that gas development and utilization should be a national priority. Now we’re going a step further to dedicate this decade to industrializing Nigeria using gas.” “…The rising global demand for cleaner energy sources has offered Nigeria an opportunity to exploit gas resources for the good of the country. We intend to seize this opportunity…To stimulate economic growth, further improve the energy mix, drive investments, and provide much-needed jobs for our citizens, gas development and utilization must be a national priority …The major objective of this administration is to transform Nigeria into an industrialized nation, with gas playing a major role… “We must deal with the energy poverty in the country. We must find a way to unlock the natural gas potential of Nigeria and drag millions of our people out of energy poverty”.

On a separate note, as a perfect storm of pressures converge on the oil and gas business, the desire for innovation is growing. Several players have proved in recent years that reserves may be economically unlocked through innovation in operational excellence. Simultaneously, growing concern about conservation and the possible environmental implications of oil and gas extraction has resulted in a well-organized advocacy infrastructure that is increasingly wielding power to influence government, corporate, and societal behaviour. Furthermore, improvements in sustainable energy technology, the Internet of Things (IoT), and connected computing are causing disruption in the way work is done and, potentially, the business it is in. For Nigeria, the Federal Government is committed to achieving carbon neutrality by utilizing Nigeria’s abundant natural gas resources as a low-carbon alternative to help improve access to energy to power the Nigerian economy by leveraging the convergence of new technologies and innovative business models to ensure long-term energy access.

Digitalization Helping Oil and Gas Companies to Be Future Ready

The passage and eventual signing into law of the Petroleum Industry Act (PIA 2021) has gained global attention, according to His Excellency Chief Timipre Sylva, Honorable Minister of State for Petroleum Resources. According to him, the new law will improve the Nigerian petroleum industry’s reputation, pave the way for new investments, and strengthen Nigeria’s ability to fulfil the world’s expanding energy demand. Even more significant, the PIA was released at a time when the global energy investment outlook is being obscured by a concerted effort aimed at hastening and enthroning a lower-carbon future.
The PIA 2021 will undoubtedly aid Nigeria achieve its goal of increasing oil production to 4 million barrels per day and oil reserves from 37 billion to 40 billion barrels per day, while also drawing on the country’s proven 209.5 trillion cubic feet (TCF) of gas valued at over $803.4 trillion and an estimated upside potential of 600 trillion cubic feet (TCF) of natural gas to provide clean and efficient energy. These resources will be critical in providing a diverse range of energy options to international markets, as well as assisting the worldwide effort to eliminate energy poverty, as envisioned by the UN’s Sustainable Development Goal 7.
For Nigeria, the above assertion is how the FGN intend to handle renewable energy and the energy transformation. While we acknowledge our national commitments to net-zero energy, there is no denying that Nigeria’s baseload electricity source is fossil fuel. This is undoubtedly a major source of concern for climate activists in developed countries, but for African countries still working to achieve baseload industrialization, address energy poverty, and ensure reliable power supply, the clamour to emphasize only renewable energy as the sole pathway to energy transition is a source of concern.

As a result, the FGN rejects the idea of a single energy transition pathway in Nigeria. Indeed, Government favours the concept of a “just” energy transition, which considers the unique conditions of each country when determining the energy transition path that best fulfils the transition’s environmental, social, political, and economic goals. Multiple energy transition pathways should and must exist to ensure that no country is left behind in the pursuit of net-zero energy by 2050.
The first is the emphasis on gas. This, for Nigeria lies at the heart of the energy revolution and is the first step away from oil and toward renewables. The FGN has already designated gas to be its transition fuel and a destination fuel, since it is expected to be a part of the nation’s energy mix by 2060 due to the massive resources that can be commercialized and utilized.
In addition, the PIA 2021 proposes considerable incentives to encourage the development, distribution, penetration, and use of gas. In January 2020, the National Gas Expansion Programme (NGEP) was also initiated to boost domestic usage.

The NGEP objective is to reinforce and expand gas supply as well as stimulate demand in the country through the effective and efficient mobilization and utilisation of all available assets, resources, and infrastructure in the country. NGEP is conceived and designed to serve as a catalyst for adding value to the vast natural gas reserves Nigeria is endowed with.
Nigeria’s proven gas reserves are sufficient to meet current demand and to sustain plans to build nine new gas-fired power plants by 2037, with a combined nameplate capacity of over 6,000 MW. This proves that gas is a viable and transformative fuel for industrial growth. As a result, President Muhammadu Buhari, who is also the Honourable Minister of Petroleum Resources, has named the years 2021 to 2030 as the “Decade of Gas,” which would serve as a fulcrum for concentrating the effort and resources needed to make gas the economic centrepiece of Nigeria by 2030.

Diversification of the Economy is also a priority, with incentives aimed at considerable increases in electricity generation and the development of a diverse variety of industrial clusters centered on fertilizer, petrochemicals, manufacturing, and agricultural companies, among other things.
Apart from the role Nigeria will play as a nation, the value of innovation needs to be emphasised in this case. Simply put, innovation is the process of developing an idea or a product that solves a problem in a new and better way. It is most closely related with technology in the energy world. However, while innovation has been at the heart of some of the world’s most remarkable technological triumphs. Innovation encompasses far more than contraptions, gizmos, widgets, or what my friend refers to as “thingmajig.” It is applicable to every area of a project. For example, effective innovation can aid in the streamlining of operations or the creation of totally new business models. And we cannot take anything for granted when it comes to creativity. It will not happen at the scale we need until new generations

entering the workforce are encouraged and implanted with it. And then, while history paints a beautiful picture of breakthrough ideas arising from solitary toil and single bursts of inspiration – the eureka moment, the reality is much different. In most cases, it entails long periods of hard work and collaboration with others. To me, it is what innovation entails. I want to emphasize that this is not a twenty-first-century solution to twenty-first-century issues. Since its inception, it has been a vital component of the oil and gas industry.
Almost every element of our life is supported by technology, which connects us with improved communication, enables access to important services in near and far places, and provides solutions to improve the quality and safety of our communities and food supply. As new ways of working, ideas, and products emerge in every industry and area across Nigeria, innovation has an equal impact on our lives and the economy. Knowledge creation, entrepreneurship, technology, and cooperation are all recognized as engines of economic growth in the innovation economy.

To put the globe on a sustainable energy path, innovation is critical. It adds value to the economy by enhancing existing processes and coming up with innovative approaches to fulfil the needs of many stakeholders. In the context of accomplishing long-term policy goals, technological innovation broadens the range of options and potential options accessible, lowering the costs of reaching those goals over time. Technology development does not happen in a vacuum: market structure, public encouragement for entrepreneurship, and direct government funding all have an impact on how quickly new technologies arise and are implemented. This holds true for energy as well as other economic areas. Many people think of technological innovation as a four-stage process that includes research, development, demonstration, and implementation. While incremental changes to technology often lead to innovation, this linear approach oversimplifies the relationships between these stages. In the real world, innovation is more complicated; few innovations have a smooth transition from one step to the next, and this model ignores many realities that can arise during the process. For example, even if a technology is extremely successful in one place, it may be inappropriate for purpose or even inadequate in all market conditions, necessitating early stage attention alongside subsidy-free adoption elsewhere. The instruments available to policymakers to accelerate the benefits of innovation are growing as we get a better knowledge of how it works. So, you can see we (Government and the private sector) are in this together, hence the need for collaboration. The more reason why, different, more systematic, and collaborative approaches to innovation are required for technologies advantageous to energy transitions. The energy system of the future will be clean and net zero. One of the important levers for enabling clean energy integration and reducing carbon emissions is the merging of artificial intelligence and digital technology with future energy solutions.

Picture Showing Enhance operational excellence in Oil and Gas industry with digital technologies

Today, technological innovation is viewed as critical to the industry’s revival, as there are numerous technology choices that can help to streamline and optimize procedures. Now, developments are centered on harnessing computational and technology resources for process safety, environmental control, and fuel quality. It entails comprehending the people who create and use technologies, as well as the social and political conventions that govern their interactions. Many of the technologies that will become commonplace in the future will require society to adjust to their unique characteristics. This could include new driving and fuelling habits, increased individual control over residential energy supply, and new industrial practices that will necessitate new regulatory measures.

Furthermore, automation enhances both the safety and efficiency of processes while also lowering expenses. However, technological innovations not only make operations easier, but they also aid in the extraction of deposits that were previously thought to be too difficult to extract.
In a lecture titled “Energy transition and energy accessibility-The new paradigm,” delivered at the 30th convocation ceremony of the Federal University of Technology, Mallam Mele Kolo Kyari, Group Managing Director/CEO of the Nigerian National Petroleum Company Limited, said that Nigeria and other African countries must leverage technology and innovation to facilitate energy access and transition. The necessity to use technology and innovation to enhance energy security, industrialization, job creation, and economic growth, according to the GMD/CEO, has grown undeniably.

Picture Showing Why digitalisation matters for oil and gas

Furthermore, while data demonstrate that the global transition to renewable energy will gain traction, the rate may not be quick enough to offset the effects of global economic expansion and population growth. The NNPC’s CEO specifically stated that expanding world population, particularly in Asia and Africa, where young people make up over half of the population, will dramatically increase energy consumption, which renewable energy sources will be unable to supply by 2050. And that efforts to transition energy systems will necessitate changes not merely to energy technologies and prices, but also to the broader social-economic structures that surround energy production and consumption.

Let us not forget that, despite significant management time and money investments, technology innovation remains a painful quest in many businesses. Why is it so difficult to develop and retain an innovative capacity? The causes go far beyond the most usually cited cause: a lack of execution. The lack of an innovation strategy is at the base of the problem with innovation improvement attempts.
A strategy is simply a commitment to a set of consistent, mutually reinforcing policies or behaviours with the goal of accomplishing a specified competitive goal. Good strategies improve an organization’s varied groups align, establish objectives and priorities, and focus efforts on those goals. Oil and gas companies need to define their overarching business strategy (scope and positioning) on a regular basis, as well as how other functions support it.

Without an innovation strategy, efforts to improve innovation can easily devolve into a jumble of well-publicized best practices: The problem is that an oil and gas organization’s ability to innovate is determined by its innovation system, which is a set of interdependent processes and structures that governs how the company searches for new problems and solutions, synthesizes ideas into a business concept and product designs, and chooses which projects to fund. Individual best practices necessitate compromises. Adopting a single technique typically necessitates a slew of other adjustments to the oil and gas organization’s innovation system. Without an innovation strategy, an oil and gas business will be unable to make trade-off judgments and select all the components of the innovation system.

Picture Depicting How Digital Transformation is The Next Frontier in Oil & Gas

Ultimately, even if a clear business strategy exists, without an innovation strategy, different segments of an oil and gas organization might easily end up pursuing contradictory agendas. Diverse viewpoints are necessary for successful innovation. The strength of variety is blunted or, worse, self-defeating without a strategy to integrate and align different perspectives around common aims.

The process of designing an innovation strategy, like any effective plan, should begin with a clear understanding and articulation of specific objectives connected to assisting the oil and gas organization in achieving a sustainable competitive advantage. This necessitates moving beyond all-too-common platitudes like “We must innovate to expand,” “We must innovate to create value,” and “We must innovate to remain ahead of the competition.” That for me is not a strategy. They give no indication of the types of innovation that might matter (or won’t).

There are several examples throughout history of how innovation has improved things. Consider how, since the Industrial Revolution, innovations in materials, chemical processes, and industrial procedures have resulted in ever more valuable goods and services, capped most recently by advances in information technology.
The global energy system’s fuel mix has also evolved over time because of innovation. New fuels were simply added to the mix to some extent. But, in part, fuels have supplanted one another: coal has supplanted wood, oil has supplanted coal, and gas is gradually supplanting oil.
Take, for example, natural gas, which has recently become a popular energy source. It is the most environmentally friendly fossil fuel. It is abundant. Innovative seismic-survey methodologies, drilling techniques, and production technology have all contributed to its newfound abundance. Liquefied natural gas (LNG) has established itself as a global industry, and gas-to-liquids chemistry has emerged from the lab.

It is not a case of one source versus the other when it comes to energy supply; the world requires all of them. Otherwise, the demand will not be met. At the same time, we must strike a balance between the demand for greater energy and environmental protection. The answer to resolving this problem is innovation. It allows us to strike a balance between environmental impact and availability and affordability.

However, open innovation alone will not be sufficient to bring us through the energy transition. World-scale deployment is required to make a difference on a global basis. You and I know that if an invention sits on a lab workbench, it will do little help in the world. It needs to be commercialized, mass produced, and scaled up.
As I previously stated, natural gas will play a significant role in the coming decades. But, to continue playing that role indefinitely, carbon capture, utilization, and storage (CCUS) must be engineered to function on a large scale. Carbon capture, utilization, and storage (CCUS) is a term that refers to a group of technologies that can help achieve a variety of global energy and climate goals. CCUS entails the extraction of CO2 from large point sources, such as power plants or industrial facilities that run on fossil fuels or biomass. CO2 can also be directly extracted from the atmosphere. If the CO2 is not used on-site, it is compressed and transferred via pipeline, ship, rail, or truck to be used in a variety of applications, or it is injected into deep geological formations (such as depleted oil and gas reservoirs or saline formations) where it is trapped for long-term storage.

Gas will play an important part in addressing our future energy needs, and it may be exploited in a complementary manner to oil, benefiting both resource owners and energy users. The potential for sustained large rise in gas demand is obvious and liquefied natural gas (LNG) will be a crucial driver in meeting that need. The creation of a larger, more dynamic, and more complicated gas market will be fuelled by the increase of LNG, as well as the emergence of gas to liquids. There are significant hurdles ahead in that market, not least in terms of supplying the new infrastructure and vast expenditure required to carry gas across ever-greater distances. Meeting those problems will necessitate action on the part of all parties concerned. The energy industry, on the other hand, has a track record of effectively overcoming such obstacles, and there is every reason to believe that the potential of gas will be realized by leveraging on innovative and disruptive technologies.

WRAPPING UP

By 2050, global energy demand will double and could even triple from the level of back in 2000. Which means the world, Africa and indeed Nigeria is going to require all forms of energy i.e., natural gas, crude oil, coal, renewables and nuclear to meet global energy demand. At the same time, the world must reduce CO2 emissions in half by transitioning to a more sustainable energy system,
To fulfil rising demand in the future decades, the globe will almost certainly require significantly more energy. Many people might be raised out of poverty, just as they were before. And, as previously, our industry has the potential to be a driving force behind this advancement.
However, this is only a portion of the story. True, the planet requires additional energy. However, we must generate all this energy with generating far less CO2. Of course, this is a major driving force behind the energy transition.

I am frequently asked, “How will this transformation unfold?” So, plainly, I am incapable of foreseeing the future. However, I am certain that the energy system of the twenty-first century will be a dynamic mix of renewables and hydrocarbons.
The world will need to invest heavily in energy production, both in traditional sources and in renewables. The broader perspective, of course is, a world looking for affordable and reliable energy to drive both economic growth and improved living standards. The global middle class is expected to double to nearly 5 billion, which means twice as many people will need commercial fuels for heating, cooling, mobility, and manufacturing.

Natural gas is an abundant, cleaner-burning fossil fuel, economic to produce, scalable, and complementary to intermittent renewables. Natural gas is one of the few energy sources that can meet many energy needs: to generate electricity, heat homes, power industry, and fuel ships and trucks. According to the International Energy Agency, there are enough recoverable natural gas resources to last more than 200 years at current levels of consumption.
Despite the critical role of renewables, they cannot provide all the world’s energy needs. Renewables chiefly power electricity, which only meets around 20% of global energy demand There is no single or simple solution to turn emissions around. Multiple approaches and technologies – including much greater efficiency are required across all parts of the energy system, alongside a clear-eyed appreciation of where emissions occur and what the abatement options are in each area.
Plus, innovation and technological advancements have a significant impact on industry and society, as history and time have demonstrated. That is why, now that we understand the importance of the environment and see it as a valuable asset that must be protected, we have a greater responsibility than ever to employ technology whose primary goal is to conserve the environment and the planet.

There is no denying that innovation has played a critical role in the oil and gas business. Technological innovation has had a significant impact on every part of the supply chain. From 3-D and 4-D seismology to advancements in distillation and isomerization to liquefaction and regasification, the way businesses explore, drill, produce, process, and distribute oil and gas has changed dramatically. As energy corporations investigate nanotechnology, biotechnology, and sustainable chemical solutions, the future will offer many more innovations.
If the world wants to meet expanding energy demand for human development while avoiding catastrophic climate change, it must transition to a cleaner energy system. Many causes, including economic growth, customer choice, emerging creative technology, and national legislation, are driving this transformation. Collaboration across industries is critical to achieving net-zero emissions.
Industries from all sectors must collaborate. They must examine the entire system before devising a strategy for each sector to decarbonize. Progress in all sectors will aid society in achieving the Paris Agreement’s objectives.
Because the global innovation footprint is wide and diverse, a major effort is required to capitalize on the diversity of what is available to allow for more open free flow of ideas, intellectual property, and technology.
Many of the strongest and brightest ideas originate from improbable partnerships between people and technology start-ups who collaborate to find solutions outside of traditional markets. That is why I believe oil and gas companies should pursue a global “open innovation” strategy in which they interact with their commercial partners, universities and research institutes, suppliers, and customers.

Data Collection and Communication Drive Technological Innovation (Source: https://www.feednavigator.com/Article)

 When we declared 2020 as “The Year of Gas” in Nigeria, it was a bold statement to demonstrate our Administration’s resolve that gas development and utilization should be a national priority. Now we’re going a step further to dedicate this decade to industrializing Nigeria using gas.” “…The rising global demand for cleaner energy sources has offered Nigeria an opportunity to exploit gas resources for the good of the country. We intend to seize this opportunity…To stimulate economic growth, further improve the energy mix, drive investments, and provide much-needed jobs for our citizens, gas development and utilization must be a national priority …The major objective of this administration is to transform Nigeria into an industrialized nation, with gas playing a major role… “We must deal with the energy poverty in the country. We must find a way to unlock the natural gas potential of Nigeria and drag millions of our people out of energy poverty”.

Finally, oil and gas businesses must be able to make trade-offs between the societal, economic, and environmental value they produce. They must also understand which operational levers are producing this value. All too frequently, societal, and environmental goals are divorced from operations and mistakenly attributed to someone else in the company.

After all, success is about living, not just surviving. Adapting to an increasingly complicated and tough working environment is especially important during a downturn. However, a single corporation can only accomplish so much. Given the enormity of the environmental, social, and economic constraints that oil and gas corporations face, the sector will either succeed or fail to withstand them collectively. This elevates the importance of innovation to unprecedented levels.
Leading firms have the opportunity to create a new brand for themselves as well as reshape the industry’s perspective through technological innovation. This new image will have to include not only financial rewards, but also environmental protection, stakeholder participation, safety, and the ability to operate with a social license. Taking an enterprise-wide approach to technological innovation and partnering with stakeholders both inside and outside the industry may be the only way to achieve this paradigm shift. Methinks.

It is up to us to choose sustainable and environmentally responsible techniques that ensure a flourishing world for all living things, that utilize clean and renewable fuels, and that promote these processes.
In closing, I’d like to pose some questions that could elicit some responses from you the reader. If we agree that innovation will allow us to provide more energy to the globe while reducing its environmental impact, how can we ensure that tomorrow’s generation is prepared to supply it? To put it another way, how can we encourage more young people to choose careers in science and engineering?
To preserve a competitive edge, a company that relies significantly on new technology, even if it advocates open innovation, as most oil and gas corporations do, should have some know-how that it should keep to itself. What steps can oil, and gas companies take to encourage collaboration while also protecting their intellectual property?

Summing up, this article is a call to action for Nigerians to visualize our country’s energy future and then engage in building it. In a generation’s time, what kind of country do you wish to live in? What do you want to leave as a legacy for your children and grandchildren? Do you want Nigeria to be a leader in the international community or a follower?
Friends and colleagues: These are not simple questions to respond to. And quite frankly, I think they must, however, be answered. I am looking forward to hearing from the publishers about them, as well as a spirited and productive conversation if I run into any of you in the near future.
Thank you.

Engr. Justice O. Derefaka is the Technical Adviser (TA) on Gas Business & Policy Implementation to the Honorable Minister of State, Petroleum Resources. He is the pioneer Program Manager (PM) of the Nigerian Gas Flare Commercialization Programme (NGFCP); and Chairman – Capacity Building Development (CBD) Subcommittee as well as Program Manager (PM) – AutoGas Subcommittee, of the National Gas Expansion Program (NGEP) in the office of the Honorable Minister of State for Petroleum Resources.