DECARBONIZATION OF THE OIL AND GAS SECTOR IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT: KEY DIRECTIONS AND POSSIBLE SCENARIOS FOR THE ARCTIC REGION

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Diana M. Dmitrieva1, Dmitry O. Skobelev2

1Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Sciences, Apatity, Russia, Diana-dmitrieva@mail.ru, ORCID 0000-0002-4208-4842

2Environmental Industrial Policy Centre, Mytishchi, Russia, ORCID 0000-0002-8067-7016

Abstract. Nowadays, the social and economic development of both individual countries and the world as a whole is facing  a large number of external challenges. One of the key issues today is the achievement of sustainable development while managing the growth in resource consumption. Balancing energy supply with the pressing climate agenda has garnered global attention, particularly within the fuel and energy sector, which is the central pillar of energy supply and will remain so  in the near future. In this regard, it is vital to determine its role in ensuring sustainable development and design mechanisms for transformation and adaptation to modern challenges. This issue is particularly acute for both functioning businesses  and strategic oil and gas projects to be implemented in the Arctic. The purpose of this article is to study existing methods and potential decarbonization scenarios to determine their applicability within the industry in the context of ensuring  the sustainable development of Russia’s Arctic. The article analyzes various scientific and technological approaches  to decarbonization in light of the adoption of the Paris Agreement in 2015, which aims to reduce greenhouse gas emissions. The study investigates the causes of greenhouse gas emissions at each stage of oil and gas operations and proposes  a mechanism for choosing decarbonization options. It critically examines global experiences and potential scenarios for reducing greenhouse gas emissions by oil and gas companies in the framework of sustainable development, identifying key trends and problems in this area. The study also presents possible decarbonization scenarios for the Arctic region, including carbon capture and storage (CCS) scenarios, renewable energy scenarios (utilizing renewable energy sources), and technological scenarios (upgrading existing technologies). The findings of this study can inform the development of strategies aimed at achieving carbon neutrality at various levels.

Keywords: sustainable development, decarbonization, Arctic region, oil and gas industry

Acknowledgments: this study was supported by a grant from the Russian Science Foundation (Project No. 22-78-10181 titled “Decarbonization of the Russian Oil and Gas Sector: Concept, New Interfaces, Challenges, Technological, Organizational, and Managerial Transformations”, https://rscf.ru/project/22-78-10181/.

For citation: Dmitrieva D. M., Skobelev D. O. Decarbonization of the oil and gas sector in the context of sustainable development: Key directions and possible scenarios for the Arctic region. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2023, no. 2, pp. 7–23. doi:10.37614/2220-802X.2.2023.80.001.

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