How are the Biggest Oil & Gas Firms Cutting Emissions?

The world's largest oil and gas companies have outlined their collective progress towards energy transition in the Oil and Gas Climate Initiative's latest annual assessment.

These 12 member organisations are working both independently and in partnership to accelerate efforts towards achieving net zero emissions by mid-century.

The latest findings demonstrate their advancement across key areas including investment in low-carbon technologies, methane emissions reduction initiatives and the development of carbon capture and storage infrastructure.

Collaborative approach across sectors

In a foreword to the report, Petrobras CEO Magda Chambriard says OGCI is making a difference and adds: “We are a diverse group of companies that have already demonstrated what’s possible when we work together toward shared ambitions”.

She explains the dynamics of the organisation and adds: “As CEOs, we meet regularly, we engage directly with each other and we invest our time and resources to help reduce emissions and accelerate the solutions needed for the energy transition.

“OGCI’s ability to build bridges between state-owned and private companies, across Europe, the US, China, the Middle East, and South America is a core strength.

“Our global reach allows us to connect ideas with action at scale.”

OGCI's aggregate progress in 2024

The 12 member companies have assessed their combined emissions data and measured performance against established objectives.

According to the report, upstream operated carbon intensity reaches 17.2kg CO₂e/boe, representing a 24% reduction since 2017 and surpassing the 17kg CO₂e/boe target set for 2025.

Upstream operated methane intensity stands at 0.12%, marking a 62% decrease since 2017 and falling below the 0.20% objective.

Routine flaring has declined by 72% compared with 2018 levels, supporting the organisation's ambition to eliminate this practice entirely by 2030.

Low-carbon investment totalled US$30bn in 2024, encompassing projects, acquisitions and research and development, bringing cumulative investment since 2017 to US$125bn. 

The companies are currently involved in developing more than 50 carbon capture, utilisation and storage projects.

Industry leadership perspectives

Mike Wirth, Chairman and CEO, Chevron, says: “Chevron remains focused on lowering the carbon intensity of our operations through energy efficiency, methane management and flaring reduction.

“Our Colorado facility retrofits exemplify these efforts. We collaborate with organisations like OGCI to advance understanding and share best practices across the industry.”

Wael Sawan, CEO, Shell, says: “Shell remains a leader in reducing emissions of methane. By the end of 2024, we had reduced total methane emissions from assets under our operational control by 76% compared with 2016.

“We have also met our target to eliminate routine flaring from our upstream-operated assets, five years ahead of the World Bank Zero Routine Flaring Initiative deadline, as we continue on our journey to deliver more value with less emissions.”

Amin Nasser, President and CEO, Aramco, says: “As a founding member of OGCI, Aramco values the sharing of best practices and working alongside peers across the industry to help develop solutions to support emissions reduction

“Our innovative lower emissions solutions, such as cogeneration, reinforce both efficiency gains and our ambition to achieve net zero Scope 1 and 2 GHG emissions across our wholly owned operated assets by 2050.”

Strategic priorities through 2030

Magda reflects on the current situation and looks forward to OGCI’s development in the coming years.

She says: “A decade ago, we had a vision of how leading oil and gas companies could contribute to one of the defining challenges of our age.

“This year we reflected on the success of OGCI’s carbon intensity and methane intensity ambitions, which were set with a target date of 2025, and took the time to reassess our priorities for the next five years.”

She adds: “The outcome was clear: OGCI’s three strategic pillars remain meaningful and will guide our updated priorities to 2030 through an action-oriented approach that remains focused on outcomes.”

The pillars are:

• Achieve net zero operations for OGCI members in the timeframe of the Paris Agreement, with a near-term objective to achieve near-zero methane emissions and eliminate routine flaring by 2030
• Demonstrate leadership and mobilise industry, such as through the Oil and Gas Decarbonization Charter, and other global initiatives
• Scale up solutions that accelerate and support the decarbonisation of society.

Magda says: “What we are doing together represents major emissions reduction opportunities and reinforces the important role of the oil and gas sector in supporting a net-zero emissions future.

“We are building on solid foundations. And while we are proud of our progress since the last annual report, we know that even more can be achieved.”

She adds: “The long-term challenge is that the world needs more energy, but with lower emissions.

“As the world advances toward net zero, it’s critical that we continue to work across sectors to provide solutions that balance addressing climate change and reducing energy poverty.

“We are encouraged by what we have achieved and motivated to do more.”