Baku, Azerbaijan, Nov.12
By Leman Zeynalova - Trend:
Oil and gas output account for over 50 percent of global greenhouse gas emissions, environmental non-profit and investment research provider CDP said in its report.
“Production and use of oil and gas accounts for over half of global greenhouse gas emissions associated with energy consumption, representing more than 17 billion tons of carbon dioxide equivalent per year,” said the company’s new report ‘Beyond the cycle’.
The report shows that European oil and gas majors including BP, Eni, Equinor, Total and Shell are investing the most in low carbon but the industry’s spend as a whole remains relatively low at only 1.3 percent of total capital expenditure (CAPEX) in 2018.
The analysis reveals a regional split in the industry’s approach.
“Across the 24 companies, European Majors account for 70 percent of current renewable capacity and nearly all capacity under development. However, with less domestic pressure to diversify, US-based companies have not embraced renewables in the same way,” said the company.
In Russia, state-owned oil companies Gazprom and Rosneft have less capital flexibility, which means they may be less agile and slower to mobilize in response to future disruption such as climate regulation, according to the report.
“This is also a trend across Chinese national oil companies including Petrochina, while a lack of disclosure on emissions data remains a key issue for Chinese companies in our analysis,” said CDP.
Further, the company says that on average companies are losing 3.3 percent of their natural gas production through flaring, venting and methane leakages – worth almost $5 billion at the current gas price.
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