The Oil and Gas Climate Initiative (OGCI) announced a target to reduce the collective average carbon intensity of member companies’ aggregated upstream oil and gas operations to between 20 kg and 21 kg CO2e/boe by 2025, from a collective baseline of 23 kg CO2e/boe in 2017.
The range is consistent with the reduction needed across the oil and gas industry by 2025 to support the Paris Agreement goals. The target represents a reduction of between 36 and 52 million tonnes of CO2e per year by 2025 (assuming constant levels of marketed oil and gas production), equivalent to the CO2 emissions from energy use in between 4 and 6 million homes.
OGCI said in a statement that it wants to play an active role in accelerating and shaping the global pathway to net zero emissions through collective and practical actions.
The target covers both carbon dioxide and methane emissions from OGCI member companies’ operated upstream oil and gas exploration and production activities, as well as emissions from associated imports of electricity and steam. OGCI will be working on specific actions on emissions from liquefied natural gas (LNG) and gas-to-liquids (GTL), to take their collective ambitions further. Carbon intensity is calculated as a share of marketed oil and gas production.
In a joint statement, the CEOs of the OGCI member companies said: “Encouraged by the progress we have made towards our target on methane intensity, we have come together to reduce by 2025 the collective average carbon intensity of our aggregated upstream oil and gas emissions. Together we are increasing the speed, scale, and impact of our actions to address climate change, as the world aims for net zero emissions as early as possible.”
To contribute to the reduction of their collective average carbon intensity, OGCI member companies are implementing a range of measures in their own operations.
Saudi Aramco said in a statement: “The aggregate OGCI target is consistent with the industry’s efforts to contribute to climate change solutions. Saudi Aramco, as a founding member of the OGCI, plays an active role in accelerating and shaping the global pathway to reduce emissions through collective and practical actions. This carbon intensity target is a near-term and practical step for member companies. Together we are increasing the speed, scale, and impact of our actions to address climate change.”
OGCI’s collective carbon intensity will be reported on an annual basis consistent with the OGCI public reporting methodology and assumptions, with data reviewed by EY, as an independent third party. While methane emissions will be included in the carbon intensity target, representing up to a quarter of the improvement, OGCI will also continue to separately report progress on reducing methane intensity.