By Rita Okoye

As many companies in the global oil and gas (O&G) industry move forward in their efforts to decarbonize, the gap between leaders and laggards continues to widen.

Decarbonization is no longer an option but a necessity for the energy sector, especially in light of the ongoing global energy transition aimed at reaching net zero by 2050.

In this context, Dr. Williams Ozowe, a Nigerian petroleum engineer in the diaspora, has emerged as a critical voice, offering insightful recommendations on how Africa, and Nigeria in particular, can move forward in the decarbonization of their oil and gas sectors.

In this spotlight, Dr. Ozowe provided an expert opinion and highlighted the need for African countries to take a proactive approach to decarbonization, especially given the continent’s heavy reliance on fossil fuels. “Africa has a significant role to play in the global energy landscape, but the path to sustainability requires a complete rethinking of how we extract, process, and utilize oil and gas resources,” said Dr. Ozowe.

Dr. Williams Ozowe is a Nigerian petroleum engineer with extensive experience in oil and gas operations. Currently based in the United States of America, he has gained international recognition for his work on enhanced oil recovery and decarbonization strategies for the global energy sector. He is an advocate for sustainable development in Africa’s oil and gas industry. He has published scholarly work on decarbonization of the oil and gas. He has also worked with McKinsey where he offered extensive insight to energy companies and related organisations.

He pointed out that many companies have already proven that decarbonization efforts, when executed efficiently, not only reduce their carbon footprint but also have the potential to enhance their bottom line. By improving energy efficiency, reducing emissions from flaring and venting, and integrating low-carbon energy sources, companies can gain a real competitive advantage. This is an opportunity African oil and gas producers cannot afford to miss.

For Nigeria and other African countries to bridge the gap between industry leaders and laggards, Dr. Ozowe stressed the need for effective policy implementation and international cooperation. Dr. Ozowe called for the introduction of more stringent emission regulations, including the enforcement of limits on carbon dioxide (CO₂) emissions from oil and gas operations. “The regulatory framework in many African countries is not yet robust enough to incentivize reductions in greenhouse gas emissions. Governments must enact policies that penalize high emitters and reward those who invest in cleaner technologies,” he explained.

He also emphasized the need for policies that encourage the integration of renewable energy into oil and gas operations. “Using solar or wind energy to power oil rigs or refining processes can significantly reduce the sector’s overall energy intensity. Governments should provide tax incentives or subsidies for companies that invest in renewable energy solutions,” said Dr. Ozowe. Gas flaring and venting continue to be major sources of emissions in Africa’s oil and gas sector. Dr. Ozowe urged governments to implement stringent policies aimed at drastically reducing these practices. “We need to establish clear targets for gas flaring reduction and put in place penalties for non-compliance. In parallel, governments should promote the development of infrastructure for gas capture and utilization.”

Carbon capture and storage (CCS) is another critical element of decarbonizing the oil and gas industry. Dr. Ozowe believes that African nations should create policies that encourage investment in CCS technologies. “Africa needs to attract foreign and domestic investments in CCS projects. This can be achieved through public-private partnerships, grants, and low-interest loans for companies willing to deploy CCS technologies.”

Many African oil and gas assets operate with high energy intensity due to outdated technologies and inefficient practices. Dr. Ozowe advocated for the adoption of energy efficiency standards that mandate the use of modern, more efficient technologies. “The gap in energy intensity between different companies, even within the same country, is staggering. African nations should introduce standards that require companies to upgrade their equipment and optimize their operations.”

Finally, Dr. Ozowe suggested that Africa must explore the potential of carbon pricing mechanisms. “By establishing a carbon market, African countries could create financial incentives for companies to decarbonize. Whether through a carbon tax or cap-and-trade system, the introduction of carbon pricing could drive significant emissions reductions.”

Dr. Ozowe is optimistic about Africa’s capacity to decarbonize its oil and gas sector, but he warns that swift and decisive action is needed. He noted that while the decarbonization gap between leaders and laggards in the oil and gas sector is growing globally, the challenge is particularly acute in Africa, where a reliance on fossil fuels persists. However, the continent also stands to benefit from advancements in clean technology and the lessons learned by early movers in decarbonization. “Closing the gap will be critical.

To reach net zero by 2050, the average energy intensity of the global supply of oil and gas in 2030 will need to be more than 50% lower than it was in 2022. Africa can achieve this by harnessing the power of innovation and creating a policy environment that supports sustainable energy practices,” Dr. Ozowe concluded.

As African countries, including Nigeria, contemplate their role in the future energy mix, it is clear that decarbonization is not just about environmental responsibility but also about economic competitiveness. Dr. Ozowe’s recommendations offer a blueprint for policymakers and industry leaders to work together in crafting a sustainable and prosperous future for the continent.