The Oil and Gas Industry in Net Zero Transitions | IEA

The Oil and Gas Industry in Net Zero Transitions

This report shows that the industry can and must do much more to respond to the threat of climate change. Regardless of which pathway the world follows, climate impacts will become more visible and severe over the coming years, increasing the pressure on all elements of society to find solutions. The industry therefore faces a choice – a moment of truth – over its engagement with clean energy transitions. So far, its engagement has been minimal: less than 1% of global clean energy investment comes from oil and gas companies. But there is no part of the industry that will be left unaffected by the transition to net zero. Every part of the industry needs to respond. IEA. CC BY 4.0 4 International Energy Agency | Special Report

The uncomfortable truth that the industry needs to come to terms with is that successful clean energy transitions require much lower demand for oil and gas, which means scaling back oil and gas operations over time – not expanding them. There is no way around this. So while all oil and gas producers needs to reduce emissions from their own operations, including methane leaks and flaring, our call to action is much wider. To escape the narrowing walls of their businesses based on traditional fuels, producers need to embrace the clean energy economy. This report explores what these opportunities look like, both for companies and for economies that rely heavily on oil and gas revenues. And with all of the above in mind, the report spells out clearly what it really means for producers to align with the Paris Agreement and with the 1.5 °C goal.

Oil and Gas to CCS, Offshore Wind, and Hydrogen