Chevron director lashes out at emissions trading

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 21 -- Chevron Australia managing director Roy Krzywosinski has echoed the recent comments of Woodside Petroleum's Don Voelte in condemning the Australian government's proposed emissions trading scheme.

Speaking at the 2008 Asia Pacific Oil & Gas Conference and Exhibition in Perth, Krzywosinski says the planned scheme would leave the LNG industry in the country bearing the full economic costs and would subsidize more carbon-intensive industries.

He said a number of elements in the proposed scheme could be obstacles to the further development of Australian LNG industry.

"Taking one scenario proposed and using the hypothesized emission price of $20/tonne over the life of a project would be likely to increase the operational costs of Chevron's Gorgon and Wheatstone developments by $100-$200 million each per year," said Krzywosinski.

"This additional cost could put the viability of projects in jeopardy."

He said a well-designed emissions trading scheme should consider a cleaner global contributor mechanism and the LNG industry should be recognized on this basis and encouraged over more-polluting energy industries.

Krzywosinski added that for every tonne of carbon dioxide emitted in Australian LNG production, as much as nine tonnes of CO2 emissions are reduced from more carbon-intensive alternatives in places such as China.

He said Gorgon would result in a reduction of 45 million tonnes/year of greenhouse gases from supplying energy to Asian markets, compared with the use of more carbon-intensive fossil fuels.

Putting this in context, he said the net reduction in greenhouse gas emissions is equivalent to taking about two thirds of all vehicles off Australian roads, or a reduction of over 8% of Australia's total greenhouse gas emissions.

Australia, he says, must take time to get the design of an emissions trading scheme right or the economic hurdle may jeopardize final investment decisions for major projects.

He added that it is clear LNG is Australia's best lever to reduce global CO2 emissions, and subsequently, LNG needs to be recognized as part of the solution.

Related Articles

Total unveils development sites for renamed Papua LNG project

07/06/2015 Total SA and its joint venture partners Oil Search Ltd. and InterOil have announced key infrastructure sites for development of the proposed Elk-An...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected