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Towards Net Zero Operations

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One of OGCI’s core missions is to help accelerate the reduction of greenhouse gas (GHG) emissions that come from the oil and gas industry. Our starting point is to support member companies as they reduce emissions from their own operations. For the 12 member companies, taken in aggregate, those emissions amounted to almost 700 million tonnes of carbon dioxide equivalent (700 MT/CO2e) in 20211 . That represents around 1% of total global GHG emissions2, so reducing these is a key contribution to decarbonization.

All 12 OGCI member companies are pursuing strategies that aim to achieve net zero GHG emissions (or carbon neutrality) by mid-century from operations under their control, and near zero methane emissions from operated oil and gas assets by 2030. OGCI’s role is to provide a forum where member companies can explore what is possible and what stakeholders expect, agree on collective targets and goals, and share knowledge on how best to measure and tackle key emission sources – energy used in production, flaring, methane leaks and methane venting.

OGCI has collective 2025 targets for upstream methane and carbon intensity. Results have exceeded expectations and the targets have been adjusted to make them more ambitious. The aggregate targets now serve as a benchmark for member companies and the wider industry3. All member companies are also signatories to the Aiming for Zero Methane Emissions Initiative, launched In March 2022 (see next section), recognizing that virtually all methane emissions from the industry can and should be avoided.

CARBON INTENSITY TARGET

Progress towards the 2025 upstream carbon intensity target is nearing the new objective, set in 2021, of 17 kg CO2e per barrel of oil equivalent (boe). That is an improvement of 17% over the five years since 2017, with a drop of 6% in intensity in 2021 alone. OGCI members had a collective upstream carbon intensity of 18.9 kgCO2e/boe in 2021.

Upstream Carbon Intensity target

In Kg Co2e/boe

Our target in detail

Includes CO2 and methane emissions

Covers operated upstream oil and gas assets

Promotes near-term action

Reported and independently reviewed annually

Consistent with the aims of the Paris Agreement

How we reduce carbon emissions

Improve energy efficiency

Co-generate electricity and useful heat

Zero routine flaring by 2030

Electrify operations with renewables where possible

Near zero methane emissions

Other OGCI initiatives towards net zero operations

OGCI member companies now share the ambition to reach net zero GHG emissions in their own operations, consistent with Paris Agreement goals, and leverage their influence with partners to do the same in non-operated joint ventures. In addition to the ambition of eliminating nearly all methane emissions from their operations by 2030, member companies also focused collectively on accelerating their performance in 2022:

  • Worked together to develop greater clarity around Scope 1 and 2 net zero roadmaps.
  • Continued to upgrade data quantification, reporting and transparency.
  • Started benchmarking performance in key areas of Scope 1 and 2 greenhouse gas reduction to identify further mitigation opportunities.
  • Started work to understand the role of electrification in reducing carbon emissions in the refining sector.

OGCI METHANE INTENSITY TARGET

The upstream methane intensity target has been effective in changing the way many companies address methane emissions in their operations. Member companies reduced upstream methane intensity from their upstream operated oil and gas assets by an average of 17% last year, a decrease of 44% in the five years since the 2017 baseline.

OGCI member companies’ aggregate methane intensity is now 0.17%, in the range of the current 2025 target of well below 0.20%4. Importantly, this improvement in intensity has translated into a 40% decrease in absolute upstream methane emissions over the five-year period. The fall in absolute methane emissions continued in 2021, even as member companies’ natural gas production increased.

Upstream Methane Intensity

2025 Target

Well below 0.20%

Our target in detail

Includes all operated upstream oil and gas assets

All OGCI members support the aims of Zero Routine Flaring by 2030

We will report our collective methane intensity annually

Consistent with support for Paris Agreement

How we reduce Carbon emissions

Improve energy efficiency

Co-generate electricity and useful heat

Zero routine flaring by 2030

Electrify operations with renewables where possible

Near zero methane emissions

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Upstream and downstream scope 1 and 2 GHG emissions for the 12 OGCI member companies. See OGCI Performance Data.

2

According to the UNEP Emissions Gap Report 2021, total annual GHG emissions are around 60 GtCO2e. The IEA estimates total GHG emissions associated with energy at 38 GtCO2e for 2019.

3

The methane intensity target has been used as a benchmark by the EDF for EU policy discussions.

4

The methane intensity indicator represents the volume of methane emissions from member companies’ upstream oil and gas operations as a percentage of the volume of the total gas marketed.