Oil and gas

To reduce emissions, fugitive methane capture, zero flaring technologies, and upstream electrification are effective in the short term. Long-term solutions include CCUS, downstream electrification and clean hydrogen.

Performance summary

– The industry has reduced emissions by 3% 2018 and 2022.^521,522 This is mainly driven by reductions in methane and flaring emissions, increased electrification of operations and improved operational efficiency.

– The absolute emissions for oil and gas were 5.45 Gt CO2e in 2021, which decreased to 5.1 Gt CO2e in 2022.⁵²³

– The production, transport and processing of oil and gas in 2022 resulted in just under 15% of global energy-related GHG emissions.⁵²⁴

– In 2022, global consumption reached 97 million barrels per day (mb/d) of oil and 4,150 billion cubic metres (bcm) of natural gas.⁵²⁵

Future emissions trajectory

– As per the IEA NZE Scenario, the oil and gas industry aims to reduce emission intensity by 55% by 2030 and 91% by 2050.⁵²⁶

– The projected absolute CO2e emissions (Scope 1 and 2 emissions) for the sector are 2 Gt in 2030, 0.45 Gt in 2040 and 0.15 Gt in 2050.⁵²⁷

– The industry aims to reduce methane emissions by over 75% by 2030 and eliminate all non-emergency flaring worldwide by the same year, leading to a nearly 95% reduction in flared volumes, according to the IEA’s Net Zero Scenario.⁵²⁸

Readiness key takeaways

Sector priorities

Note: This page presents a condensed summary of the sector’s performance, for a complete view, including on the sector’s readiness for the energy transition, please view the sector PDF here.