Our aggregate data is reported annually and used to set baselines and track progress for collective targets. OGCI member companies have standardized and regularly streamline the methodologies we use to collectively report greenhouse gas emissions and spending on low carbon technologies.
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OGCI Performance Data 2021
OGCI has been collecting aggregate data across all member companies since 2017. We are continually improving methodologies and data collection processes in areas such as flaring and investment and R&D in low carbon technologies, as well as adding new aggregate indicators. This year we started to collect greenhouse gas emissions data on an equity basis to complement operated data and plan to publish this in future. An independent third party collects and reviews OGCI data. In 2022, EY issued a limited assurance statement covering 10 companies, two more than last year (see Statement page 6).
With five years of data now available, we are starting to see some clear trends.
1. Absolute upstream methane emissions have fallen 40% since 2017, exceeding our expectations when setting the first methane intensity target in 2018. This volume of methane emission reduction is on the scale of 800,000 tonnes per year or equivalent to around 2.5 million homes no longer using energy1. OGCI member companies are now aiming to reach near zero methane emissions by 2030 from their operated oil and gas assets.
2. Investment in low carbon technologies has risen steadily over the five years. In 2021 it almost doubled, reflecting activity both in renewable energies and in developing CCUS facilities designed to decarbonize heavy industry. Cumulative spending on low carbon technologies (from both investment and R&D) from 2017 to 2021 was $40 billion.
3. Progress in reducing carbon dioxide emissions in downstream has been slower. These have decreased by 11% since 2017, with a 3% drop in 20211. The slower progress largely reflects the lack of relatively straightforward solutions (equivalent to stopping flaring and venting in upstream) to reduce the carbon intensity of refineries and chemical plants – one reason OGCI has struggled to set a near-term downstream intensity target. Concerted efforts to advance low carbon hydrogen, CCUS and electrification are expected to bring results in a few years’ time.
|Mboe/day||Million barrels of oil equivalent per day|
|kgCO2e/boe||Kilograms of carbon dioxide equivalent per barrels of oil equivalent|
|MtCO2e||Million tonnes of carbon dioxide equivalent|
|MtCH4||Million tonnes of methane|
|Mm3||Million cubic metres|
Note: Our member companies are continually improving their own reporting methodologies. As a result, the published data for 2019 and 2020 incorporates some methodological changes and may differ slightly from those previously reported. Read more about OGCI’s definitions and methodology in the OGCI Reporting Framework
All reported data is the aggregate for 12 companies unless otherwise stated.
Read about definitions and methodology in the OGCI Reporting Framework
Aggregate oil and gas production of the 12 OGCI member companies remained stable in 2021 at 43.8 Mboe/day, with oil production falling 2% over the year, while gas production rose 3% on the back of stronger demand and a significant acquisition. Over the past five years, oil production has fallen 7% and gas production risen 7%. The share of gas has now risen to 37% of aggregate oil and gas production. OGCI member companies operated 27% of global oil and gas production in 2021.1
|OGCI oil production||Mboe/day||29.8||29.9||29.7||28.3||27.6|
|OGCI gas production||Mboe/day||15.2||15.7||16.1||15.7||16.2|
|OGCI oil and gas production||Mboe/day||45.0||45.6||45.8||44.0||43.8|
| Share of natural gas in OGCI |
|OGCI oil and gas production (equity)||Mboe/day||42.5||42.4||42.9||41.6||41.1|
- Provisional estimate of global oil and gas production of 164 Mboe/day in 2021, based on IEA indicators for oil demand of 96.5 Mboe/day and global natural gas production of 67 Mboe/day. IEA will publish oil supply data for 2021 on October 27, 2022. OGCI member companies’ share of total oil and gas production is 27% on an operated basis and 25% on an equity basis. OGCI production data is included up until first point of sale, including LNG liquefaction plants if located before the first point of sale.
Greenhouse gas emissions
Upstream carbon intensity is on track to achieve the 2025 target, falling by 6% in 2021 to 18.9 kg/boe, bringing the total reduction since 2017 to 17%. OGCI’s 2025 target is 17 kg/boe. Reductions in absolute greenhouse gas emissions were aligned with the reduction in intensity. Scope 1 upstream greenhouse gas emissions fell by 5% over the year (and a total of 18% since 2017), due to falling oil production levels, flaring reduction and vent recovery projects, and portfolio changes. The decrease in Scope 2 emissions was due to a change in quantification methodology in one company and in perimeter scope for a pipeline in another.
Downstream, which accounts for around half of OGCI member companies’ aggregate Scope 1 greenhouse gas emissions, has shown slower progress than upstream, reflecting the complexity and longer timelines of decarbonization efforts in refineries and chemical facilities.
At 618 MtCO2e, aggregate greenhouse gas emissions across all sectors represent 1.1% of global greenhouse gas emissions, using latest 2019 data from the UNEP’s Emissions Gap Report 2021.
|Upstream carbon intensity1||kgCO2e/boe||22.7||22.1||21.3||20.1||18.9|
|Greenhouse gas emissions - (Scope 1)2||MtCO2e||709||687||684||631||618|
| of which: |
upstream emissions (Scope 1)3
|Upstream greenhouse gas emissions (Scope 2)4||MtCO2e||41.4||43.5||43.7||39.4||38.2|
- This is the key performance indicator for OGCI’s upstream carbon intensity target. It includes upstream carbon dioxide and methane emissions, both Scope 1 and 2, on an operated basis. It excludes emissions from gas liquefaction and gas-to-liquids. Any other greenhouse gases included are immaterial.
- This figure includes direct (Scope 1) emissions of carbon dioxide, methane and nitrous oxide (for those companies that report it) from all operated activities (upstream as well as downstream, which includes refineries and petrochemicals).
- Upstream activities comprise all operations from exploration to production and gas processing (up to the first point of sale), including LNG liquefaction plants if located before the first point of sale.
- Scope 2 emissions were not calculated in a homogenous way across companies, with some using a location-based and others a market-based methodology.
OGCI members reported an aggregate upstream methane intensity of 0.17% in 2021, a 17% decrease over the year and a 44% reduction over 2017. With a 2025 target intensity of well below 0.20%, member companies launched a new Aiming for Zero Methane Emissions initiative in 2022, striving to reach near zero methane emissions from their operated assets by 2030, while sharing what they are learning about detection, measurement and reduction across the industry.
Despite the increase in gas production in 2021, absolute upstream methane emissions showed a decrease of 8% over the year and 40% over five years. These reductions occurred across all the main sources of methane emissions – fugitive leaks, venting, flaring, and pneumatic controls and pumps. The improvements were a result of widescale equipment and system upgrades, improved flaring controls, and continued leak detection and repair. Venting and fugitive leaks accounted for over 60% of aggregate upstream methane emissions. The upstream sector accounted for 92% of OGCI total methane emissions in 2021.
|Upstream methane intensity1||%||0.30||0.25||0.23||0.20||0.17|
|Methane emissions – upstream||MtCH4||2.0||1.7||1.6||1.3||1.2|
|Total operated methane emissions2||MtCH4||2.1||1.9||1.7||1.4||1.3|
- This is the key performance indicator for OGCI’s 2025 upstream methane target of well below 0.20%. It includes total upstream methane emissions from all operated gas and oil assets. Emissions intensity is calculated as a share of marketed gas.
- This figure includes relevant operated activities (upstream, refineries, petrochemicals, power generation, etc, where these are operated by the company).
OGCI member companies continued to reduce flaring volumes and greenhouse gas emissions from flaring in 2021, as part of efforts to end routine flaring and achieve near zero methane emissions by 2030.
Upstream flaring intensity and volumes fell by 3% in 2021, accompanying a 5% drop in emissions from upstream flaring. Routine flaring volumes (for the 11 companies that report it) fell 2% in 2021.
Since 2017, flaring greenhouse gas emissions have fallen 33%. Progress in 2021 was linked to gas recovery and re-use during testing, closure of flares and other flare reduction projects and lower production at ageing assets.
|Upstream flaring intensity1||Mm3/Mtoe||10.8||9.5||9.2||7.5||7.3|
|Natural gas flared – upstream||Mm3||24,221||21,465||20,998||16,504||15,949|
|Routine gas flared – upstream||Mm3||-||5,636 (10)||4,871 (10)||4,250 (11)||4,157 (11)|
|Flaring greenhouse gas emissions - upstream||MtCO2e||62||57||55||44||42|
- Upstream flaring intensity is calculated on the basis of the volume of gas flared per million tonnes of oil equivalent produced on an operated basis.
Investment and R&D in low carbon technologies
Aggregate OGCI data on low carbon investment and R&D include only 10 companies in most cases. These companies reported investments totalling US$12.6 billion on low carbon technologies in 2021, an increase of 91% over 2020. Renewable energies accounted for over half of the investment, comprising the bulk of the acquisition spend. Organic investment in CCUS more than doubled over the year, spread across many companies.
R&D spending on low carbon technologies rebounded in 2021, growing 52% in absolute terms over the year and accounting for 17% of total R&D spend. The total spend on low carbon technologies, taking investments and R&D together, amounted to $40 billion over the five years from 2017 to 2021.
|Total investment in low carbon technologies1||US$ billion||4.7 (10)||5.5 (10)||5.6 (10)||6.6 (10)||12.6 (10)|
|of which: acquisitions||US$ billion||0.3 (5)||1.0 (5)||1.1 (9)||1.6 (9)||7.7 (9)|
|R&D expenditures on low carbon technologies2||US$ billion||0.7 (9)||1.0 (9)||1.0 (9)||0.8 (10)||1.3 (10)|
|Low-carbon R&D as a share of total R&D spend||%||19 (9)||15 (9)||15 (9)||13 (10)||17 (10)|
- Low carbon energy technologies include but are not limited to wind, solar and other renewable energies, carbon-efficient energy management, CCUS, blue and green hydrogen, biofuels, synfuels, energy storage and sustainable mobility.
- R&D spending is additional to investment.