Fossil fuels: Fossil fuel crossroads

Context

Oil and gas operations are responsible for 15% of global energy-related emissions—around 5.1 billion tonnes of greenhouse gases annually. Experts say emissions from the sector could be cut by 60% through proven, cost-effective measures like stopping methane leaks, electrifying facilities, and deploying carbon capture.

Dilemma

Do you:
A) Invest now in reducing emissions, sacrificing short-term profits to become an industry leader in low-carbon operations.
B) Delay action, protect current profit margins, and continue high-emission operations—despite growing public and regulatory pressure.

Summary

Oil and gas operations generate 15% of global energy-related emissions (5.1 billion tonnes CO₂). The IEA’s Net Zero Scenario requires halving emissions intensity by 2030 through cost-effective measures: stopping methane leaks, banning routine flaring, electrifying facilities with clean energy, deploying carbon capture, and scaling low-emissions hydrogen. These steps—prioritizing methane reduction first—could cut operational emissions by 60% with a $600 billion investment, just 15% of the industry’s 2022 windfall profits. While some companies have set targets, most lag behind the pace needed. Transparent monitoring and reporting are critical to ensure progress, offering a viable, low-cost pathway to curb near-term climate impact.

Resources:

• https://www.iea.org/reports/emissions-from-oil-and-gas-operations-in-net-zero-transitions
• https://www.statista.com/topics/10956/oil-and-gas-industry-emissions-worldwide/
• https://www.clientearth.org/projects/the-greenwashing-files/shell/