Two reports from oil and gas industry groups released in November detail the voluntary greenhouse gas (GHG) emissions reduction efforts led by the industry and highlight the progress being made on that front.
The annual progress report of the Oil and Gas Climate Initiative (OGCI), a coalition of 12 of the world’s largest oil and gas companies including Aramco, bp, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Shell and TotalEnergies, shows its members have cut their upstream methane emissions by 55 percent and reduced upstream GHG emissions from flaring by 47 percent.
“Flaring” in oil and gas development refers to the controlled burning of natural gas that cannot be processed or sold. This occurs at oil production sites where gas is extracted along with oil but is not economically viable to capture and transport to market. Flaring produces carbon dioxide and smaller amounts of pollutants like methane and nitrogen oxides.
“Flaring intensity” refers to the amount of gas being flared in relation to the volume of oil being produced or to the overall level of production activity. It is a metric used to assess how much gas is being wasted through flaring and to gauge the efficiency and environmental impact of the flaring practices at a given site.
OGCI members also lowered their upstream carbon dioxide intensity by 21 percent since 2017, with total GHG emissions also reduced 19 percent since 2017. OGCI members represented 26 percent of global oil and gas output in 2023.
Meanwhile, the 2024 Climate Report of the Interstate Natural Gas Association of America (INGAA), a 27-member trade organization representing the vast majority of the interstate natural gas transmission pipeline companies in the United States and Canada, shows a 14 percent decrease methane emissions intensity from their members between 2021 and 2022, with a 6 percent decrease in overall methane emissions.
These two industry studies mirror the findings of the U.S. Environmental Protection Agency’s recently released 2023 data from its Greenhouse Gas Reporting Program (GHGRP), which show a 44 percent drop in methane emissions overall from 2011.
EPA found similar conclusions in a report released in conjunction with the Clean Air Task Force in June, showing a 37 percent overall decline in methane emissions from 2015 to 2022. Meanwhile, the 2024 annual report of The Environmental Partnership, a voluntary collective of oil and gas companies “committed to continuously improving the industry’s environmental performance,” found its members, who represent nearly 70 percent of U.S. onshore oil and natural gas production, have decreased their flare volumes by 76 percent since 2019.
The oil and natural gas deposits found throughout the United States are abundant, affordable, and environmentally safe. Moreover, they can ensure the United States is the world’s largest energy producer well beyond the 21st century. Therefore, policymakers should refrain from placing unnecessary burdens on the natural gas and oil industries which, as these reports demonstrate, are committed to safe, environmentally responsible extraction and positively impact state economies.
Heartland Impact can send an expert to your state to testify or brief your caucus; host an event in your state; or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact Cameron Sholty, at csholty@heartlandimpact.org or 312/377-4000.
