BAKU, Azerbaijan, June 14. A six-year forecast predicts that the oil and gas industry's emissions intensity will decrease by approximately 15 percent, leading to an 11 percent reduction in absolute emissions, despite a projected 5.8 mb/d increase in global oil production, Trend reports.
The United States, as the largest oil producer globally, also accounts for a significant share of emissions from oil operations. The International Energy Agency (IEA) reveals that in the previous year, the US contributed to 16 percent of global Scope 1 and 2 upstream emissions and 19 percent of the global oil supply. With a focus on climate action, the Biden Administration has enacted the US Inflation Reduction Act (IRA) and implemented policies to combat methane emissions, minimize flaring, and promote carbon capture, utilization, and storage (CCUS). As a result, it is estimated that US upstream oil emissions will decrease by 40 percent, despite a 13 percent production increase over the forecast period, primarily due to reductions in methane emissions.
The Middle East, responsible for 33 percent of the world's current oil supply and 26 percent of upstream oil emissions, is projected to increase oil production by 7 percent by 2028 while simultaneously reducing emissions by 4 percent. While certain countries in the region, such as Iran, Iraq, and Qatar, have room for improvement, progress is evident. The Abu Dhabi National Oil Co (Adnoc) in the UAE has committed to a methane intensity target of 0.15 percent by 2025 and aims to decrease its greenhouse gas (GHG) intensity by 25 percent by 2030. Saudi Aramco has implemented an extensive leak detection and repair (LDAR) program, resulting in minimal methane emissions and a highly efficient flaring system through its master gas capture system.
Overall, the oil and gas industry is taking significant steps to reduce emissions as global production continues to rise, with key players implementing strategies to mitigate environmental impacts and support sustainable energy practices.
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