How oil and gas decarbonisation leaders are changing the game

As global climate imperatives intensify, oil and gas companies face mounting pressure to reduce emissions. While many struggle to find a sustainable path forward, others are rapidly transforming their operations, achieving substantial emissions reductions by combining tactical execution with strategic alignment.

Outpacing the industry: measurable gains

From 2020 to 2023, the top decarbonisation performers cut carbon dioxide equivalent (CO2e) intensity by more than 1 kilogram per barrel of oil equivalent (boe) per year—double the industry average. They managed to tackle approximately 85% of their emissions profile, as compared to the industry benchmark of 70%. Meanwhile, 40% of global oil and gas assets saw emissions intensity rise during this same period.

This disparity signals both the scale of opportunity and the urgency for others to catch up. If all producers matched these leaders’ pace, the sector could be on track to meet 2030 climate goals. As it stands, however, global emissions from upstream oil and gas must decrease at twice the current rate to align with net-zero trajectories.

Distinct behaviours

BCG’s research outlines four key differentiators that enable companies to deliver superior decarbonisation results:

1. Cost-efficient programmes

Rather than relying on costly overhauls or untested innovations, leaders focus on low-capex and high-impact initiatives. These include improving energy efficiency, cutting flaring, and reducing methane leaks. Such measures are typically 8–12 times more cost-efficient than capital-intensive approaches like carbon capture and storage (CCS) or electrification with renewables.

2. Proven technologies

Leading firms don’t reinvent the wheel — they scale what’s already available. Many implement solutions such as variable frequency drives, electric compressors, and infrared methane detection. They also digitise operations to monitor energy usage and emissions in real-time. This data-driven approach identifies abatement opportunities and also supports asset optimisation.

3. Enterprise-wide cultural commitment

Perhaps most importantly, decarbonisation is not treated as a siloed ESG effort but as a company-wide mandate. Leadership teams embed emissions targets into key performance indicators (KPIs) and investment criteria. Operational staff are trained in low-emissions best practices, while accountability is established across all business units. This cultural integration ensures sustainability is not a side project, but a core performance metric.

4. Incentives and partnerships

Decarbonisation leaders excel at navigating  and capitalising on regulatory and market frameworks. Whether accessing subsidies, participating in carbon markets, or forming consortiums to share infrastructure, they find creative ways to fund transitions. In some cases, assets have generated new revenue streams by marketing recaptured gases or leveraging tax credits.

 Carbon pricing: a game-changer

One of the clearest accelerators of emissions reduction is a robust carbon pricing regime. BCG’s analysis reveals that assets in jurisdictions with carbon pricing achieved double the emissions intensity reductions of those without. When carbon is priced at $70 per metric tonne, nearly 60% of potential abatement projects become economically viable. Without such pricing, only 30% meet that threshold.

This underscores the importance of policy alignment. While voluntary efforts matter, regulatory frameworks can catalyse systemic change.

A call to action

For the oil and gas industry, meeting the 2030 goals require doubling the current pace of emissions reduction. BCG’s research offers hope. The tools, technologies, and tactics already exist—what’s needed is committed execution and broader adoption.

Decarbonisation leaders are demonstrating that environmental responsibility and business performance go hand in hand.

For the rest of the industry, the roadmap is clear. The challenge now lies in execution.