The Oil and Gas Climate Initiative (OGCI) is a group of oil and gas companies in 130 countries representing over 30% of global operated oil and gas production. You have most likely heard of many of their members: BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Saudi Aramco, Shell, Total. The goal of the member companies is accelerating the fossil fuel industry’s response to climate change.
A close target
This week, OGCI announced a target date of 2025 by which to reduce the collective carbon intensity of their members’ companies aggregated upstream oil and gas operations. This reduction should go from 23 kg CO2e/boe to between 20 and 21 kg CO2e/boe. Many companies have been issuing target dates of 2050 for net or near net zero emissions. The OGCI target feels like it is already on our doorstep.
Paris Climate Agreement
They feel it is important to set a sooner date than most in order to meet the goals of the Paris Climate Agreement. The Paris Agreement is an environmental accord drawn up in 2015. It has since been signed by nearly every nation on the globe. The Agreement itself is a 32 page document that proposes to:
- Limit global temperature rise by reducing greenhouse gas emissions
- Provide a framework for transparency, accountability and the achievement of more ambitious targets
- Mobilize support for climate change mitigation and adaptations in developing nations
President Obama entered the United States into the Paris Agreement through executive action in Sept. 2016. Upon entering office, President Trump started proceedings withdrawing the United States from the Agreement. But, because of restrictions within the Agreement, the U.S. will not be officially out until Nov. 4 of this year.
OGCI want net zero
The OGCI, in a joint statement by its CEOs, said, “Encouraged by the progress we have made towards our target on methane intensity, we have come together to reduce by 2025 the collective average carbon intensity of our aggregated upstream oil and gas emissions. Together we are increasing the speed, scale, and impact of our actions to address climate change, as the world aims for net zero emissions as early as possible.”
Their plan for doing this involves all member companies to implement action wherever it is possible. These actions include:
- Improving energy efficiency
- Reducing methane emissions
- Minimizing flaring
- Electrifying operations – using renewables when possible
- Co-generating electricity and useful heat
- Implementing carbon capture and storage
The target will include both carbon dioxide and methane emissions. However, OGCI has decided not to include liquified natural gas (LNG) or gas-to-liquids (GTL) in their upstream target. Instead, these areas will work on a specific set of initiatives.