Saudi Aramco has joined a group of oil giants from Europe and the United States to start reducing emissions from their operations.
By joining the Oil and Gas Climate Initiative (OGCI), global oil companies are working to respond to climate change and are committed to reducing carbon intensity in their operations.
Carbon intensity promised to cut 20 to 21 kilograms of carbon dioxide per barrel of equivalent oil before 2025, or 13 percent below its level in 2017.
This target refers only to “density”. That is, producers are allowed to increase total emissions, but they must be cleaner on a barrel basis.
The target also does not include customer emissions. By carbon accountants, this type of emission is referred to as “range 3”, which usually amounts to more than 90 percent of the oil company’s total footprint.
On the other hand, the target is higher than 18 kilograms of carbon dioxide per barrel, on average the members of the International Association of Oil and Gas Producers, who account for about 40 percent of the industry.
BP Plc CEO and Chairman of OGCI Bob Dudley said the new goal is important because it brings together oil producers from the private and public sectors to achieve common goals.
“This is a start,” Dudley said, as reported by Bloomberg, on Friday (7/17/2020).
“I do not think it is a small achievement to unite all these companies – national oil companies, which have their own pressures, as well as European and American companies that have different governments and shareholder pressure – are already working together, especially during the [Covid-19] epidemic,” he said. .
According to OGCI, achieving the goal before 2025 will remove up to 52 million tons of carbon dioxide annually, which is equivalent to the total emissions of about 6 million homes in the United States.
Dudley added: “Anyone tell you that this is not a big number, it is not correct.”
Meanwhile, a Saudi Aramco spokesman said in a statement on Thursday (16/07/2020) that the company has been actively investing in sustainability for decades.
He said: “Since the 1970s, companies have been investing in reducing glare and installing gas recovery systems.”
European oil companies such as BP, Royal Dutch Shell Plc and Total SA have announced some of the more aggressive emission targets. However, they were also criticized for the lack of detail.
“Big companies like ExxonMobil Corp and Chevron Corp don’t set precise targets for all of their emissions. By contrast, OGCI is targeting in the short term, which means practical and measurable,” Dudley continued.
The OGCI announcement was announced the same week that Democratic presidential candidate Joe Biden launched a plan to spend $ 2 trillion in dollars by creating a clean energy economy aimed at rapidly reducing greenhouse gas emissions.
Meanwhile, the European Union aims to be carbon neutral by 2050. This is a big reason why European oil companies have achieved the same goal.
“It is a coincidence that the OGCI plan was announced in the same week that Biden announced. Despite widespread public criticism of its contribution to climate change, the oil and gas industry has proven its ability to adapt quickly to economic and political pressures.”