Supporting a net-zero future that delivers for people and planet

The journey to net-zero emissions (NZE) does not have a unique solution - there are multiple pathways and combinations of technologies. However, science-based pathways to NZE that also ensure “access to affordable, reliable, sustainable and modern energy for all” (United Nations’ SDG 7) all include oil and gas as part of the energy mix for the foreseeable future.

NZE and the oil and gas sector

Given the challenges posed by regional differences, the need to balance energy affordability, reliability and sustainability (the ‘energy trilemma’) and other factors, oil and gas is expected to continue to play an important role in meeting global energy demand on the way to NZE.

The industry is responding to the challenge of transforming the global energy system through decarbonisation and by responding to increased demand for decarbonised energy products.

Reflecting this need, many operators have made NZE commitments regarding Scope 1 and 2 emissions. A range of measures are readily available and adopted within the industry, including:

• Efficiency improvements in operations
• Elimination of routine flaring, and minimisation of methane emissions
• Carbon, capture and storage (CCS)
• Deployment of renewable power

Electrification and evolving consumption will drive increased demand for low-carbon electrons. However, some sectors are more challenging to electrify, including long-haul transport, petrochemicals, cement, steel, mining, marine transport, and aviation. Customers in these sectors are expected to drive increased demand for low-carbon molecules like hydrogen or biofuels. CCS is a key lever in supporting both production of low-carbon electrons (e.g. gas fired power generation with CCS) and low-carbon molecules (e.g. low-carbon intensity hydrogen).

The importance of CCS and hydrogen

For large-scale, cost-effective mitigation and stabilisation of atmospheric CO2, CCS is a critical technology.

The oil and gas industry is currently working to develop CCS technologies and projects and, of the 50 projects in operation today, the majority are related to enhanced oil recovery, while others are pure geologic storage projects.

Hydrogen combustion can produce the high-quality heat necessary for numerous industrial processes. Low-carbon hydrogen can carry and store energy across major sectors (electricity, industry, transportation and buildings). It can eventually be an enabler of the growth of renewable hydrogen through the repurposing and reuse of the existing gas infrastructure and distribution network.

The role of IPIECA in the net-zero journey

As a non-lobby association, IPIECA convenes members and stakeholders to advance a shared industry response to the energy transition in the context of sustainable development. Such collective action is critical to enabling the industry to develop the new value chains and products necessary to deliver the aims of the Paris Agreement while also protecting and enhancing nature and advancing the social and economic development of communities and countries. IPIECA provides a unique platform for our industry to work towards a NZE future in support of the Paris Agreement.