Although some oil and gas companies have taken steps to combat climate change, the industry as a whole could play a much greater role through its engineering capabilities, financial resources and project management expertise, according to a new report by the International Energy Agency (IEA) released Monday 20 January.
“With their extensive know-how and deep pockets, oil and gas companies can play a crucial role in accelerating deployment of key renewable options such as offshore wind, while also enabling some key capital-intensive clean energy technologies – such as carbon capture, utilisation and storage and hydrogen – to reach maturity”, said Fatih Birol, IEA Executive Director.
However, according to the report, the average investment by oil and gas companies in areas not directly part of their core business - such as wind or solar - has so far been limited to about 1% of total capital spending.
In the eyes of the IEA, a key task is to increase investment in low-carbon fuels, such as hydrogen, biomethane and advanced biofuels, so that they account for around 15% of overall investment in fuel supply over the next 10 years, as required to combat climate change.
In addition, the oil and gas industry obviously has to focus first and foremost on reducing the environmental footprint of its own activities, while around 15% of global energy-related greenhouse gas emissions come from the process of extracting oil and gas and transporting it to consumers, the IEA stresses.
According to the agency, while reducing methane leakage to the atmosphere is the most important and cost-effective way for this industry to reduce its emissions, many other opportunities exist, such as ending gas flaring.
To consult the IEA report: https://bit.ly/3aqzl8Z (Original version in French by Damien Genicot)