ABB’s circularity report: 96% of oil and gas businesses hit by resource scarcity

Energy, raw materials, and water are seen as the scarcest resources (cited by 44%, 43%, and 34% respectively). This resource scarcity has led to increased costs for 31% of oil and gas businesses, as well as supply chain disruption and slowdowns in production capacity (both 24%). Despite energy being an increasingly scarce resource, 45% reported it as their biggest source of waste. This highlights an urgent need for greater energy efficiency across industry, something the International Energy Agency (IEA) says will be a critical lever in meeting net- zero targets.

The global survey, conducted by Sapio Research in October 2023, gathered responses from 411 oil and gas decision-makers across 12 countries.

While there is optimism about investing in circularity, the survey also identified obstacles to immediate progress. For example, no single definition of ‘circularity’ was accepted by the majority of respondents. Also, only 5% see circularity as a company-wide responsibility, but this group experienced the highest level of improvements across key circularity metrics, such as energy consumption, use of recycled materials, and carbon emissions.

The survey also reveals that limited adoption of many important circular practices amongst oil and gas companies, including partnering with waste management companies (39%), incorporating energy-efficient technologies (33%), and promoting circular principles in the supply chain (34%). Encouragingly, 71% are using recycled materials in their products to some extent.

Investing in circularity has already led to measurable benefits, including waste reduction (40%) and energy efficiency improvements (44%). Although some businesses express concern about the upfront investment required, many anticipate long-term improvements in process efficiency and cost control.

Most respondents (73%) agree that the circular economy encourages innovation and drives competitiveness. They also support increased regulation and reporting requirements (68%) and want more government support for adopting circular business practices (73%).

Tarak Mehta, President of ABB Motion, commented: "The pressing need to transition to a circular economy has never been clearer. Our current way of life is depleting resources at an unsustainable rate, contributing to emissions and climate change. Embracing circularity is not only essential for safeguarding our environment but also for enhancing business resilience.”

“This survey highlights the importance of taking a holistic approach, instilling responsibility at all levels of the organisation, and embracing new technologies and collaborations. While there are challenges to overcome, businesses that fully embrace circularity see significant benefits, from cost control to improved reputation. We must act now, to make circularity the norm in global industries. There is no time to waste."

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Read the article online at: https://www.worldpipelines.com/business-news/05022024/abbs-circularity-report-96-of-oil-and-gas-businesses-hit-by-resource-scarcity/