Oil and Gas Giants Offer Climate Initiatives

22 november 2019 | Neftegazovaya Vertikal

Irina Pominova, Deputy Head of the Department for Fuel and Energy Complex and Housing and Public Utilities of the Analytical Center, writes in an article published in Oil & Gas Vertical Journal that the largest oil and gas companies in the world are increasingly involved in the fight against climate change, which potentially leads to a reduction in their sales markets.

Irina Pominova
Irina Pominova
Department for Fuel and Energy Sector

According to Ms. Pominova, this paradox is explained by the tangible contribution of oil and gas giants to the formation of anthropogenic greenhouse gas emissions against the background of changing preferences of shareholders, investors and consumers towards the increase in climate responsibility.

The expert says that oil and gas companies, being guided by the goals of reducing greenhouse gas emissions, mainly take measures such as improving the energy efficiency of production operations, energy saving, monitoring methane leaks, and using cogeneration (including ExxonMobil, Pemex) and renewable energy sources (including Saudi Aramco, PJSC Gazprom, National Iranian Oil Company, CNPC) to cover its own needs. The standards for disclosing the voluntary carbon reporting of oil and gas companies, as well as the statement of their goals to reduce greenhouse gas emissions, are very diverse. The author provides detailed statistics on the initiatives of specific companies.

Green investments of oil and gas companies are carried out in such areas as renewable energy generation (a separate business), alternative fuels with associated infrastructure, hydrogen technologies and carbon storage and capture technologies.

Despite the recent growth of green investments by oil and gas giants, especially European ones, the IEA still estimates them as insignificant compared to core investments. Most oil and gas companies, expecting the growth in demand for their products in the near future, consider it more appropriate to invest in core operations.

Source: Oil & Gas Vertical