Is big oil serious about going low carbon?
BloombergNEF January 19, 2021
This analysis is from BlooombergNEF. It appeared first on the Bloomberg Terminal.
The global oil industry is facing pressure to decarbonize. Regulations and reputational risks have forced most oil majors to take action to reduce their own emissions, such as curbing methane flaring, sequestering carbon dioxide and sourcing renewable power for oil and gas facilities. Yet a much more significant trend is now underway – big oil companies are setting targets and making investments to decarbonize the energy they sell to consumers. Doing so puts the industry on a pathway to not only lower carbon production, but also lower carbon products. This Research Note assesses the ambitions being laid out by the world’s biggest oil producers and the potential decarbonization pathways for the oil industry that are beginning to emerge.
By the numbers
50-65%: Scope 3 emissions intensity reduction goals announced by Shell, Total, Eni and Equinor.
190GW: Wind power capacity required to achieve a 50% reduction in scope 3 emissions intensity per million barrels of oil equivalent per day.
8%: Percentage of global oil production covered by scope 3 targets.
Decarbonization-related targets and initiatives for major oil and gas companies
Source: BloombergNEF, company reports
Note: Blue and green indicate low carbon targets and memberships. See the Appendix in the note for more detail on each company’s targets.