IEA - Emissions from Oil and Gas

The report on "Emissions from Oil and Gas Operations in Net Zero Transitions" by the International Energy Agency (IEA) highlights the need for the oil and gas industry to take action to reduce emissions and achieve net-zero emissions. The report notes that many companies have announced targets to reduce their scope 1 and 2 emissions, but these commitments vary in scope and timelines. Only a fraction of these commitments align with the pace of decline seen in the Net Zero Emissions (NZE) Scenario, and most companies plan to use offsets to achieve their targets. The report emphasizes the need for forward-leaning companies to recognize the importance of moving faster than the global average reduction in emissions and building a broader coalition of companies willing to play their part in achieving net-zero emissions. To build public confidence in the actions being taken, the report calls for a consistent approach to monitor, report, and verify emissions from oil and gas activities. This approach should be based on robust measurements to improve the accuracy, availability, and transparency of emissions data. The report also highlights various measures that oil and gas producers can take to address the problem of emissions from their activities, including tackling methane emissions, eliminating all non-emergency flaring, electrifying upstream facilities with low-emissions electricity, equipping oil and gas processes with carbon capture, utilization, and storage technologies, and expanding the use of hydrogen from low-emissions electrolysis in refineries. The report estimates that upfront investments totaling USD 600 billion would be required to halve the emissions intensity of oil and gas operations globally by 2030, which is only a fraction of the record windfall income that oil and gas producers accrued in 2022.