2nd June 2025
Oil and gas production accounts for approximately 87% of global energy-related greenhouse gas emissions. (1) Yet oil and gas companies present themselves as key players in the transition to net zero. The claims they make to justify the continued extraction and production of oil and gas are questionable. These are issues I am going to explore over the next few days.
One claim is that some sources of oil and gas are more climate friendly than others because they have a smaller – or sometimes it is phrased as cleaner – footprint. This may also be referred to as the (upstream) carbon intensity of the fossil fuel. The reduction being referenced is the reduction in scope 1 and 2 emissions – ie those carbon emissions arising from production, transport and processing of the oil and gas. It does not include the emissions released through the subsequent use of the oil and gas – the scope 3 emissions.
Fossil fuel companies can reduce scope 1 and 2 emissions by: “tackling methane emissions, eliminating all non-emergency flaring, electrifying upstream facilities with low-emissions electricity, equipping oil and gas processes with carbon capture utilisation and storage (CCUS), and expanding the use of low-emissions electrolysis hydrogen in refineries.” (2) Of these cutting methane emissions and flaring can achieve the biggest reductions in emissions.
The Oil and Gas Climate (OGCI) launched its upstream carbon intensity target in 2020. Its aim is to reduce member companies’ aggregate upstream carbon intensity from 23 kg of greenhouse gases per barrel of oil or gas in 2017 to 17 kg by 2025. (3) For comparison scope 3 emissions per barrel are typically 402kg. (4)
By reducing the carbon intensity of their oil and gas production, companies may argue that their’s is a better source of fuel. This claim is then used to justify expanding their production of fossil fuels. However they do not along side this make a similar or even greater reduction in production from other sites.
- https://www.instituteforenergyresearch.org/international-issues/2023-set-records-in-global-fossil-fuel-use-and-carbon-dioxide-emissions/
- https://www.iea.org/reports/emissions-from-oil-and-gas-operations-in-net-zero-transitions
(3) https://www.ogci.com/carbon-intensity-target
(4) https://www.scopegroup.com/dam/jcr:5066dd6f-613a-4ab9-a032-b32b97b28bb7/Scope ESG_IR Oil and Gas Industry.pdf
The Green Tau 