CEOs heading the world’s largest oil and gas companies announced on Thursday a new collective target to reduce the average carbon intensity of their upstream operations by 2025.
The 12 members of the Oil and Gas Climate Initiative (OGCI) said they aim to cut the carbon intensity to around 20-21 kg of CO2 equivalent per barrels of oil equivalent (CO2e/boe) from their collective baseline of 23 kg CO2/boe in 2017.
In 2018, their collective carbon intensity reached 22.1 kg CO2/boe, Kallanish Energy notes.
The target range “is consistent with the reduction needed across the O&G industry by 2025 to support the Paris Agreement goals,” OGCI said in a statement. It covers both carbon dioxide and methane emissions from member companies’ operated upstream oil and gas exploration and production activities, as well as emissions from associated imports of electricity and steam.
OGCI estimates that the target will reduce CO2 emissions by 36-52 million tonnes per year by 2025. The group described the new target as a “near-term, practical step” toward increasing their contribution to the transition to a low carbon future.
Data on the collective average carbon intensity will be published annually and reviewed by EY. Although it includes methane emissions, OGCI will still report the progress in reducing methane intensity separately.
The group will also look into setting specific actions for liquefied natural gas (LNG) and gas-to-liquids (GTL) emissions. It didn’t provide a timeframe for such work.
OGCI is chaired by BP’s former CEO Bob Duddley, and members include BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Saudi Aramco, Shell, and Total.
Together, the majors account for over 30% of the global operated oil and gas production.
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