From Yahoo Finance: 2025-04-10 05:56:00

In 1859, the modern oil industry was born with the discovery of the first viable petroleum reservoir in the US, revolutionizing energy use worldwide. Oil and natural gas are crucial energy sources for transportation, industry, and heating, but must adopt effective decarbonization techniques for sustainability.

Member companies of the Oil & Gas Climate Initiative have collectively reduced their total operated upstream methane emissions by 55% and cut greenhouse gas emissions from flaring upstream by 47% since 2017. A GlobalData report highlighted the top seven flaring countries contributing to global gas flaring volume, releasing 381 million tonnes of CO2e in 2023.

Oil and condensates production is expected to peak in 2027 at 96.5 million barrels per day, while gas production is projected to peak in 2029 at 488.1 billion cubic feet per day. The withdrawal of the US from the Paris Agreement has raised concerns among major US oil companies, contrasting with industry investment in cleaner energy.

Decarbonizing the upstream oil and gas industry is essential for sustainability, with electrification and low-carbon power options being key strategies. The North Sea Transition Authority emphasizes the need for reducing greenhouse gas emissions and supporting carbon capture and storage projects to ensure cleaner production in the North Sea.

Reducing methane emissions through advanced technologies like satellites, drones, and sensors is crucial for effective decarbonization. Initiatives like the OGCI’s Satellite Monitoring Campaign have shown promising results in detecting and abating methane emissions in regions like Algeria, Iraq, and Kazakhstan.

Collaborative efforts led by OGCI aim to address barriers to decarbonization, with more than 50 companies committing to net-zero emissions by 2050. The NSTA highlights key technology areas like electrification, equipment efficiency, and emissions monitoring as crucial for reducing emissions in the upstream sector.

While challenges like high upfront costs and regulatory uncertainties exist, initiatives like OGCI’s decarbonization targets and the OGA Plan in the UK are driving progress. Implementing technologies like flare gas recovery systems, enhanced emissions monitoring, and alternative fuels can play a significant role in achieving decarbonization goals.

Read more: The critical importance of decarbonising the upstream