What's Happening?
Occidental Petroleum, as part of the Oil and Gas Climate Initiative (OGCI), has contributed to substantial reductions in methane emissions, routine flaring, and upstream carbon intensity. OGCI members,
including Occidental, have collectively reduced methane intensity by 62%, routine flaring by 72%, and upstream carbon intensity by 24% compared to 2017 levels. The group's aggregate emissions have decreased by 25% to 304 million tonnes of CO₂ equivalent. Additionally, OGCI companies have invested $30 billion in 2024, bringing the total investment since 2017 to $125 billion in low-carbon initiatives, including carbon capture and storage (CCUS), renewable energy, and sustainable fuels.
Why It's Important?
The progress reported by OGCI highlights the oil and gas industry's efforts to address climate change and reduce environmental impact. By significantly cutting emissions and investing in low-carbon technologies, companies like Occidental are contributing to global sustainability goals. These actions are crucial for meeting international climate agreements and transitioning to cleaner energy sources. The investments in CCUS and renewable energy indicate a shift towards more sustainable practices, which could influence industry standards and regulatory policies.
What's Next?
OGCI aims to eliminate routine flaring by 2030, and its members are actively developing over 50 CCUS projects with the potential to reduce or remove up to 500 million tonnes of CO₂ annually by 2030. The initiative's Oil & Gas Decarbonization Charter, launched at COP28, includes 56 signatories representing companies responsible for roughly 45% of global oil production. The upcoming second annual report at COP30 in Brazil will further assess the progress and impact of these efforts.
Beyond the Headlines
The OGCI's efforts reflect a broader industry trend towards transparency and accountability in environmental practices. The adoption of OGCI's reporting framework by the Oil & Gas Decarbonization Charter signifies a commitment to measurable and verifiable progress in emission reductions. This could lead to increased pressure on non-member companies to adopt similar practices, potentially driving industry-wide change.
