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The International Energy Agency (IEA) has released a peer-reviewed report today, focussed on the efforts of oil and gas companies to reduce their environmental footprints, concluding that companies’ failure to address growing calls to reduce greenhouse gas emissions could threaten their long-term social acceptability and profitability.
The International Energy Agency (IEA) has released a peer-reviewed report today, focussed on the efforts of oil and gas companies to reduce their environmental footprints, concluding that companies’ failure to address growing calls to reduce greenhouse gas emissions could threaten their long-term social acceptability and profitability.
The IEA’s ‘Oil and Gas Industry in Energy Transitions’ report suggested that oil companies must balance their desire for near-term financial returns and a long-term future by playing a much more significant role in combating the climate crisis.
The paper points out that the nearing of the Paris Agreement 2030 Agenda for Sustainable Development will increase the pressure on all industries to find solutions to their production of emissions.
IEA executive director Dr Fatih Birol said “No energy company will be unaffected by clean energy transitions. Every part of the industry needs to consider how to respond. Doing nothing is simply not an option.”
He pointed that the first immediate task for all parts of the industry is reducing the environmental footprint of their operations.
“As of today, around 15% of global energy-related greenhouse gas emissions come from the process of getting oil and gas out of the ground and to consumers. A large part of these emissions can be brought down relatively quickly and easily.”
Other suggested options include lowering the emission intensity of delivered oil and gas to eliminate routine flaring and integrating renewables and low-carbon electricity into new upstream and liquefied natural gas developments.
While some oil and gas companies have taken steps to support efforts to combat climate change, the report found that so far, investment by oil and gas companies outside their core business areas has been less than 1% of total capital expenditure, with the largest outlays going to solar PV and wind.
