Daily Management Review

IEA: World needs $600B to cut global emissions from oil and gas production by half


The International Energy Agency (IEA) analysts predicted that oil and gas businesses will still make record profits in 2022despite the $600 billion expenditure needed to halve global emissions associated with oil and gas extraction.

Kim Hansen
Kim Hansen
"By 2030, oil and gas production will need to cut its worldwide emissions intensity in half, requiring an initial expenditure of $600 billion. According to the agency's report, "Emissions from Oil and Gas Operations in the Transition to Zero," that amount represents a tiny portion of the record profits that oil and gas companies are expected to make in 2022, a year marked by skyrocketing energy prices amid the worldwide energy crisis.

According to the IEA, 5.1 billion tons of carbon dioxide (CO2) equivalent emissions were produced by oil and gas operations in 2022. 40 gigatons worth of emissions were related to energy globally. The organization notes that the oil and gas sector thus accounts for close to 15% of the CO2 emissions from the energy sector.

Five areas for lowering emissions by 2030 are recommended by IEA analysts. The most important one is to cut back on methane emissions, which are a major cause of the planet's rising temperatures. Reduced gas flaring is also necessary. It is suggested to use it in other ways, including delivering it to consumers, injecting it again to keep reservoir pressure constant, liquefying it, and using it to make energy.

source: iea.org