«Problems of economics and management of oil and gas complex»

Strategic approaches to de-carbonization of the leading oil and gas companies in the USA

UDC: 332.05
DOI: -

Authors:

¹ Primakov Institute of World Economy and International Relations, Russian Academy of Sciences, Moscow, Russia

Keywords: decarbonization, oil companies, Net Zero, energy efficiency, Carbon capture, Use and Storage (CCUS), Direct Air Capture (DAC), hydrogen, offsets, Zero Routine Flaring, scope 1, 2, 3, ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum

Annotation:

Oil and gas products significantly contribute to greenhouse gas emissions; both while being produced (Scopes 1 and 2) and while final consumption (Scope 3). Decarbonization of the global economy, with the goal of stopping dangerous climate change by the mid-century, is impossible without a profound transformation of business models built on the use of fossil fuels. Countries around the world and international companies are building their long-term decarbonization strategies taking into account the climate agenda approved by the UN Framework Convention on Climate Change in 2015 – the Paris Agreement. Some decarbonization strategies rely on the use of renewable energy sources, most relevant for energy and oil and gas companies in the European Union. In turn, US oil and gas companies, focused on increasing oil and gas production, are looking for potential decarbonization opportunities in the use of carbon capture technologies, energy efficiency projects and the production of biofuels. The article systematizes the main decarbonization methods used by companies in the oil and gas industry. Each method carried out according to the degree of impact on reducing greenhouse gas emissions and their capital intensity was analyzed. The approaches of major US oil and gas companies to achieve carbon neutrality are reviewed and prioritized in accordance with strategic plans and medium-term activities specified in appropriate "road maps".

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