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Expert: Using data to reduce Houston’s oil and gas carbon footprint

"To solve the climate crisis, confidence in emissions data is crucial." Photo via Getty Images

Sustainability has been top of mind for all industries as we witness movements towards reducing carbon emissions. For instance, The Securities and Exchange Commission (SEC) proposed a new rule that requires companies to disclose certain climate-related activities in their reporting on a federal level. Now, industries and cities are scrambling to ensure they have strategies in the right place.

While the data behind sustainability poses challenges across industries, it is particularly evident in oil and gas, as their role in energy transition is of the utmost importance, especially in Texas. We saw this at the COP26 summit in Glasgow last November, for example, in the effort to reduce carbon emissions on both a national and international scale and keep global warming within 1.5 degrees Celsius.

The event also made it clear achieving this temperature change to meet carbon neutrality by 2030 won’t be possible if organizations rely on current methods and siloed data. In short, there is a data problem associated with recent climate goals. So, what does that mean for Houston’s oil and gas industry?

Climate is a critical conversation – and tech can help

Houston has long been considered the oil and gas capital of the world, and it is now the epicenter of energy transition. You can see this commitment by the industry in the nature of the conferences as well as the investment in innovation centers.

In terms of the companies themselves, over the past two years each of the major oil and gas players have organized and grown their low carbon business units. These units are focused on bringing new ideas to the energy ecosystem. The best part is they are not working alone but joining forces to find solutions. One of the highest profile examples is ExxonMobil’s Carbon Capture and Underground Storage project (CCUS) which directly supports the Paris Agreement.

Blockchain technology is needed to improve transparency and traceability in the energy sector and backing blockchain into day-to-day business is key to identifying patterns and making decisions from the data.

The recent Blockchain for Oil and Gas conference, for instance, focused on how blockchain can help curate emissions across the ecosystem. This year has also seen several additional symposiums and meetings – such as the Ion and Greentown Houston – that focus on helping companies understand their carbon footprint.

How do we prove the data?

The importance of harmonizing data will become even more important as the SEC looks to bring structure to sustainability reporting. As a decentralized, immutable ledger where data can be inputted and shared at every point of action, blockchain works by storing information in interconnected blocks and providing a value-add for insuring carbon offsets. To access the data inside a block, users first need to communicate with it. This creates a chain of information that cannot be hacked and can be transmitted between all relevant parties throughout the supply chain. Key players can enter, view, and analyze the same data points securely and with assurance of the data’s accuracy.

Data needs to move with products throughout the supply chain to create an overall number for carbon emissions. Blockchain’s decentralization offers value to organizations and their respective industries so that higher quantities of reliable data can be shared between all parties to shine a light on the areas they need to work on, such as manufacturing operations and the offsets of buildings. Baking blockchain into day-to-day business practice is key in identifying patterns over time and making data-backed decisions.

Oil and gas are key players

Cutting emissions is not a new practice of the oil and gas industry. In fact, they’ve been cutting emissions estimates by as much as 50 percent to avoid over-reporting.

The traditional process of reporting data has also been time-consuming and prone to human error. Manually gathering data across multiple sources of information delivers no real way to trace this information across supply chains and back to the source. And human errors, even if they are accidental, pose a risk to hefty fines from regulatory agencies.

It’s a now-or-never situation. The industry will need to pivot their approaches to data gathering, sharing, and reporting to commit to emissions reduction. This need will surely accelerate the use of technologies, like blockchain, to be a part of the energy transition. While the climate challenges we face are alarming, they provide the basis we need for technological innovation and the ability to accurately report emissions to stay in compliance.

The Energy Capital of the World, for good

To solve the climate crisis, confidence in emissions data is crucial. Blockchain provides that as well as transparency and reliability, all while maintaining the highest levels of security. The technology provides assurance that the data from other smart technologies, like connected sensors and the Internet of Things (IoT), is trustworthy and accurate.

The need for good data, new technology, and corporate commitment are all key to Houston keeping its title as the energy capital of the world – based on traditional fossil fuels as well as transitioning to clean energy.

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John Chappell is the director of energy business development at BlockApps.

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Building Houston

 
 

All aboard the bus to greener transportation. Photo via Unsplash

Houston Independent School District is hopping on the city's net-zero carbon emissions bus, so to speak, thanks to more than $6.2 million in funding from the Environmental Protection Agency.

The funds are part of the EPA's Clean School Bus Program Fiscal Year 2022 rebate competition, which will award nearly $51 million in funds from President Biden’s Bipartisan Infrastructure Law to Texas school districts, and $965 million in total to districts around the country.

Houston's $6.2 million will go toward 25 new school buses, according to a statement from the EPA. Fifteen of the vehicles will be brand-new electric buses.

"Taking steps to make our school buses greener while remaining safe and effective is not only imperative for the wellbeing of students and bus drivers, but also for the public at large,” Houston Congressman Al Green said in a statement. “I applaud this announcement by the EPA under President Biden’s leadership. I look forward to seeing the positive impact that this outstanding award to purchase electric and propane school buses will have on reducing our carbon footprint.”

HISD must now submit Payment Request Forms with purchase orders that shows the district has ordered the new buses and eligible infrastructure.

The district is among 13 Texas school districts to receive funding. Dallas ISD, the second largest school district in the state behind HISD, was awarded roughly $7.6 million. Killeen ISD and Socorro ISD received the largest sums among the districts, totalling nearly $9.9 million in funding each.

At the time of the statement, the EPA had selected 389 applications across the country totaling $913 million to support the purchase of 2,463 buses, mainly in areas serving low-income, rural, and/or Tribal students. More applications are under review, and the EPA plans to announce additional districts that will receive funding, bringing the total investment to the full $965 million, in the coming weeks, according to a statement.

The EPA intends to make available another $1 billion for clean school buses in Fiscal Year 2023.

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