OGCI companies ramp up low-carbon investment, reduce emissions – Annual Report

• In 2022, OGCI members stepped up low-carbon investment to $24.3 billion – a 66% increase compared with the previous year, taking the total since 2017 to $65 billion.

• OGCI members increased activities to help other companies decarbonize through methane emissions reductions, CCUS development and setting out pathways to decarbonize refining.

• In 2022, OGCI’s Scope 1 operated greenhouse emissions were 17% lower than in 2017, equivalent to removing the emissions from 27 million cars driven for one year.

LONDON – Oil and Gas Climate Initiative (OGCI) member companies stepped up low-carbon investment in 2022 to $24.3 billion and increased activities to help other companies decarbonize while continuing to reduce emissions from operations to meet their target of net zero operations.

According to the group’s annual Progress Report, published today, OGCI’s 12 member companies have collectively halved absolute upstream methane emissions and cut carbon intensity by over a fifth compared with the 2017 baseline. In 2022, OGCI members’ investment in low-carbon solutions was up almost 70% compared with the previous year, totalling $65 billion since 2017.

Progress came as OGCI increased its efforts to reduce methane emissions across the oil and gas industry by extending its Satellite Monitoring Campaign to more countries. The group has also successfully rallied support around an industry-wide initiative it launched in 2022 to eliminate the potent greenhouse gas.

Support for the Aiming for Zero Methane Emissions Initiative to reach near zero methane emissions by 2030, now numbers over 90 companies, including private and state-run oil companies, service firms, technology providers and consultancies.

In 2022, OGCI also expanded work to support the development of industrial hubs where carbon dioxide is captured and stored and set out pathways to help decarbonize the refining sector, which emits around 1 gigatonne of CO₂ a year.

OGCI Executive Committee Chair Bjørn Otto Sverdrup said:

“As we approach OGCI’s 10-year anniversary, we can see that we have made some good progress, showing that working together can achieve results in decarbonizing our industry. But we recognize that there’s more to do.

“To tackle the climate challenge, we must accelerate action across our industry and other sectors. As we head into COP, we see major opportunities for collective action on methane emissions and industry-wide efforts to reduce emissions from operations. Technologies such as carbon capture will also be vital to achieve the Paris Agreement goals.”

Bjørn Otto Sverdrup, OGCI Executive Committee Chair

Some highlights of OGCI progress in the past year

1. OGCI members’ greenhouse gas emissions are continuing to fall

Aggregated upstream carbon intensity at operated assets is 21% lower than it was in 2017, largely due to reductions in methane and flaring emissions and an increase in renewable sourcing and portfolio changes.

In 2022, OGCI’s Scope 1 operated greenhouse emissions were 17% lower than in 2017. The reduction is equivalent to removing the emissions from 27 million cars driven for one year.

2. To achieve a net zero economy, OGCI members are investing billions of dollars in low-carbon technologies

In 2022, OGCI member companies invested $24.3 billion on low-carbon technologies – up 66% compared with the previous year. Renewable energy technologies such as wind and solar accounted for the largest share, while spending on carbon capture, utilization and storage tripled since 2021.

Since 2017, OGCI members have cumulatively spent $65 billion on low carbon technologies, including acquisitions and R&D.

3. Leading the industry and acting to help decarbonize society

To help other oil and gas companies reduce methane emissions at their facilities, OGCI has expanded its Satellite Monitoring Campaign to more countries. The campaign has been successfully running in Iraq, Kazakhstan, Algeria and Egypt.

To support the decarbonization of hard-to-abate sectors such as steel, cement and petrochemicals, OGCI member companies are actively involved in developing 40 large-scale CCUS hubs around the world.

These 40 CCUS hubs have the potential to remove up to 300 million tonnes of CO₂ a year by 2030. This is equivalent to shutting down 80 coal power plants or removing the emissions of 67 million cars.

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Background

• The Oil and Gas Climate Initiative is a CEO-led organization bringing together 12 of the largest companies worldwide to lead the oil and gas industry’s response to climate change.
  
• It aims to accelerate action towards a net zero emissions future consistent with the Paris Agreement.
  
• Together, OGCI member companies represent almost 30% of global oil and gas production.
  
• OGCI members are Aramco, bp, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Shell and TotalEnergies.