Build consistent baseline and counterfactual emissions estimates for a portfolio of candidate abatement projects.
Oil, Gas & Energy
Marginal Abatement Cost Curves for Upstream and Refining Emissions
Teaches analysts to build marginal abatement cost curves for upstream and refining assets, ranking flaring, electrification and efficiency projects to guide capital allocation under carbon pricing.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
When an oil and gas company faces dozens of candidate decarbonisation projects and a limited capital budget, a marginal abatement cost curve turns a long list of options into a ranked investment programme by plotting each project's abatement potential against its cost per tonne of carbon dioxide avoided. This course teaches analysts how to build that curve properly for upstream and refining assets, starting with consistent baseline and counterfactual emissions data for each candidate project, from flare gas recovery and vapour recovery units to electrification of compression and process efficiency retrofits. Sessions cover the cost accounting choices that determine whether a curve is credible, including how to treat capital recovery, ongoing operating costs, energy price assumptions and the revenue or fuel savings that offset gross project cost. The course addresses common distortions, such as double-counting abatement across interacting projects and ignoring implementation constraints like manpower and permitting timelines, and shows how to stress-test the curve against carbon price and commodity price scenarios. Participants leave able to construct a defensible curve for their own asset portfolio and use it to argue for a specific capital allocation sequence with finance and operations leadership.
Expected Learning Outcomes
Calculate cost per tonne of carbon dioxide abated for flaring, electrification and efficiency project types.
Construct a marginal abatement cost curve that ranks projects by cost-effectiveness across an asset portfolio.
Identify double-counting and interaction effects between projects that distort a poorly constructed curve.
Incorporate implementation constraints, including manpower, permitting and outage windows, into project sequencing.
Stress-test abatement rankings against carbon price and commodity price scenarios relevant to the business.
Present a capital allocation recommendation to finance and operations leadership supported by the abatement curve.
Who Should Attend
Emissions and decarbonisation analysts building investment cases for abatement projects
Asset engineers proposing flaring, electrification or efficiency retrofit projects
Finance and capital planning staff evaluating decarbonisation project portfolios
Sustainability managers reporting abatement progress against corporate targets
Strategy teams assessing carbon price exposure across upstream and refining assets
Consultants building marginal abatement cost curves for oil and gas clients
Course Modules
Select any module to see its sessions and points.
01Baseline Data and Project Identification
2 sessions · 8 points
Session 1Building Consistent Baseline Emissions Data
- Establish a consistent baseline year and boundary for emissions data across upstream and refining assets.
- Reconcile measured, calculated and estimated emissions sources into a single defensible baseline inventory.
- Define counterfactual emissions trajectories that isolate the effect of a proposed abatement project.
- Identify data gaps that require targeted measurement before a project can be added to the curve.
Session 2Identifying and Scoping Candidate Abatement Projects
- Screen candidate projects, including flare gas recovery, vapour recovery units and compressor electrification.
- Scope process efficiency and energy management projects with measurable emissions and energy cost impact.
- Assess technology readiness and site-specific feasibility for each candidate project before costing.
- Group interacting projects that affect the same emissions source to avoid double-counting abatement.
02Cost Accounting and Curve Construction
2 sessions · 8 points
Session 1Cost Accounting for Abatement Projects
- Apply consistent capital recovery and discount rate assumptions across all candidate projects in the portfolio.
- Account for operating cost changes, including energy savings and maintenance, over each project's life.
- Net fuel, flare gas or product recovery revenue against gross project cost to reach a true net cost.
- Document cost assumptions transparently so the resulting curve can withstand internal and external scrutiny.
Session 2Constructing and Interpreting the Cost Curve
- Plot projects by abatement potential and cost per tonne to build the marginal abatement cost curve.
- Distinguish negative-cost projects that pay for themselves from projects requiring a positive carbon price to justify.
- Interpret curve shape to identify quick wins versus projects that depend on future cost or price changes.
- Compare the resulting curve against published sector benchmarks to sense-check project cost assumptions.
03Avoiding Common Distortions
2 sessions · 8 points
Session 1Correcting Double-Counting and Interaction Effects
- Identify projects that abate the same emissions source and adjust the curve to avoid double-counting.
- Sequence interacting projects so that later projects are costed against the correct post-abatement baseline.
- Assess how portfolio-level abatement changes when projects are implemented in a different order.
- Reconcile site-level and corporate-level abatement curves that may otherwise double-count shared initiatives.
Session 2Incorporating Implementation Constraints
- Factor manpower availability and specialist contractor capacity into realistic project delivery timelines.
- Align abatement project scheduling with planned turnarounds and outage windows to reduce implementation cost.
- Assess permitting and regulatory approval timelines that could delay abatement realisation beyond the target date.
- Flag projects with technology or supply chain risk that could invalidate the curve's cost assumptions.
04Scenario Testing and Capital Allocation
2 sessions · 8 points
Session 1Stress-Testing against Price Scenarios
- Model curve sensitivity to a range of carbon price trajectories relevant to the company's operating regions.
- Test project economics against commodity price scenarios that affect fuel savings and revenue offsets.
- Identify projects whose ranking changes materially under different price and policy scenarios.
- Build a scenario summary that shows how the recommended project sequence shifts under each case.
Session 2Presenting the Capital Allocation Case
- Translate the abatement curve into a phased capital allocation recommendation for finance leadership.
- Align proposed project sequencing with corporate emissions targets and reporting commitments.
- Address likely challenges from finance and operations on cost assumptions and delivery risk.
- Establish a review cadence that updates the curve as costs, prices and project data change over time.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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