Opportunities for Change: Decarbonising Oil & Gas for Asia-Pacific’s Net-Zero Future

Beyond the essential optimization of existing operations, the Asia Pacific region is uniquely positioned to tap into significant, yet largely unexplored, opportunities that can accelerate its decarbonization journey. Imagine powering your city with energy drawn directly from the Earth's core, or transforming heavy industries with clean, electric processes. With Southeast Asia alone holding nearly half of the world's geothermal reserves, the potential for substantial decarbonization and enhanced grid stability is immense. 

In this blog, we will uncover how the oil and gas sector’s inherent expertise can be repurposed to unlock geothermal energy, how industrial electrification can drastically reduce emissions, and crucially, how empowering the human element through targeted workforce development will be the key stone for achieving these ambitious energy transition goals. 

Realizing the Opportunities 

Geothermal Energy: Tapping the Earth's Hidden Power for a Resilient Grid 

Beyond optimizing existing operations, the Asia Pacific region possesses a remarkable, largely untapped resource: geothermal energy. With Southeast Asia alone holding nearly half of the world’s geothermal reserves, this presents an extraordinary opportunity for significant decarbonization and can augment the firming capabilities of the energy mix. 

The beauty of geothermal lies in its inherent connection to the existing expertise within the oil and gas industry. The sector's long-standing knowledge and extensive experience in drilling and subsurface technologies can be directly repurposed to responsibly use geothermal energy. This approach not only diversifies energy portfolios for oil and gas companies but also strategically positions them as forward-thinking leaders in sustainable energy.  

Specialized geological modeling and resource management software, often adapted from mining applications, can provide comprehensive geological modeling and precise reservoir characterization specifically for geothermal resources. These tools allow for precise mapping of geothermal anomalies, a deep understanding of subsurface fluid flow and the optimization of well placement, thereby significantly reducing exploration costs and associated risks. 

A key factor in accelerating geothermal development is the ability to reduce exploration risks. This is where advanced technologies, such as seismic imaging and AI analytics, supported by cutting-edge geospatial capabilities, become indispensable. High-resolution aerial imaging and LiDAR solutions provide detailed topographic data and invaluable subsurface insights. When these are combined with powerful AI-powered analytics platforms as described in this science direct paper, this rich data can be used to accurately identify geothermal indicators, analyze geological structures and predict drilling success rates with far greater precision. This makes geothermal a significantly more viable and attractive energy source for the region, unlocking its immense potential as a reliable, renewable power source that can contribute to grid stability. 

Electrification: Driving Down Emissions in Industrial Processes 

The electrification of industrial processes offers a pathway to drastically reduce emissions in some of the most energy-intensive industries, including steel, cement and chemicals. This shift is helpful for these industries to reduce their own reliance on fossil fuels and lessen the overall burden on the energy system. For example, GMK’s Arc furnace with steel production of 1.5 million tons per year expects to reduce carbo emissions by 90% compared to traditional blast furnace production. 
New technologies are already gaining significant traction. Consider the innovations of electric arc furnaces for steel production and electrified cement kilns. These groundbreaking technologies offer cleaner, more sustainable alternatives to traditional, high-emission processes. Crucially, they eliminate the need for direct fossil fuel burning, leading to substantial reductions in greenhouse gas emissions. Integrated engineering and design software plays a major role in the careful design and precise engineering of these new electrified processes.  

These smart tools ensure efficient layout, optimal energy distribution and strict adherence to safety standards for entirely new electrified infrastructure. They enable precise modelling and simulation of the complex electrical systems needed for industrial electrification. This optimizes power use, the identification of potential bottlenecks and the smooth integration of renewable energy sources into the industrial grid, all contributing to significant emission cuts. 

The APAC region is already seeing strong regional leadership in this area. This Iea.org article shows that Japan and South Korea are leading the way in adopting and expanding electrification technologies, setting a powerful example for other nations. Scaling these solutions across the broader Asia Pacific landscape could truly revolutionize how industries use energy and drive massive decarbonization efforts.  

Advanced project management and construction solutions are key to making these technologies widespread. They offer strong project management and execution tools, ensuring that ambitious electrification projects are completed on time and within budget, with full cost control and project visibility. Streamlined construction management software helps ensure the efficient and timely delivery of new electrified industrial facilities, helping other countries in the region follow the lead of successful nations. 

Workforce Enablement: Empowering the Human Engine of Change 

While technology is clearly the driving force of this energy transition, it’s vital to remember that digital transformation and energy innovation are not just about machines and software – they are fundamentally about people. Building a skilled, adaptable workforce is central for any decarbonization effort to succeed. This is especially true as the industry shifts its focus toward lower-carbon operations and firming capabilities.

This means a strong focus on upskilling and training. Structured training programs are essential for improving digital literacy and helping employees confidently use new tools and workflows. Industry-specific training programs for advanced software platforms are incredibly important. These programs are specially designed to give current oil and gas workers the skills they need to operate and maintain new digital systems, analyze vast amounts of data from digital twins and manage complex electrified processes. This targeted training directly fills the skills gap in areas such as AI-driven analytics and advanced digital workflow management. Plus, powerful simulation capabilities, built into design and engineering software, can create realistic virtual training environments.  

Technology is also playing a role, thanks to large language models (LLMs) and agentic AI employees can access the information they need more simply than ever before. This, alongside immersive environments, lets employees safely practice new procedures and workflows related to cutting-edge energy technologies, building confidence, expertise and enabling innovation without risk. 

Charting a Course for a Brighter Future with Firming Capabilities 

The Asia Pacific oil and gas industry is delicately balancing the rising demand for energy with the pressing imperative of global decarbonization. The industry will confidently navigate this intricate and challenging transition by:  

• Adopting digital transformation to reduce its own operational emissions
• Harnessing the region’s vast geothermal potential
• Electrifying its industrial processes  
• Incorporating carbon capture and storage to further lower its carbon intensity
• Planning for responsible decommissioning
• Investing in training and empowering its workforce

A comprehensive suite of integrated technologies – encompassing intelligent asset management, sophisticated digital twins, powerful geospatial solutions, detailed engineering design tools and robust project execution software – provides the essential tools and expertise needed to speed up this energy transition. These solutions don't just make things more efficient; they fundamentally improve operations, reduce environmental impact and drive sustainable growth across the entire Asia-Pacific region.  

By wisely using these tools, the APAC oil and gas sector can fulfill its critical role as a reliable, progressively lower-carbon energy firming agent, ensuring grid stability and energy security as the region moves toward a net-zero future powered predominantly by renewables. This strategy is not about abandoning oil and gas, but about transforming their role to be indispensable for a truly sustainable energy transition. 

Conclusion 

This two-part series has outlined how the Asia Pacific oil and gas industry can confidently navigate the intricate balance between rising energy demand and the imperative of global decarbonization. By strategically adopting digital transformation in support of these new business strategies, the industry can secure a brighter future.  

A comprehensive suite of integrated technologies—from intelligent asset management and sophisticated digital twins to powerful geospatial solutions and robust project execution software—provides the essential tools to accelerate this transition. These solutions fundamentally improve operations, reduce environmental impact and drive sustainable growth across the entire Asia-Pacific region.  

By wisely leveraging these tools and developing the workforce, the APAC oil and gas sector can fulfill its role as a reliable, progressively lower-carbon energy firming agent, ensuring grid stability and energy security on the path to a net-zero future.  

To learn more about how Hexagon's solutions can support your organization's energy transition, contact a Hexagon representative today. In the meantime, watch the Reduce Costs & Unlock Growth - Practical Strategies for a Profitable Energy Transition webinar.