Oil and gas companies have a responsibility to make stronger commitments to curb emissions and mitigate the impacts of climate change. One of the most important steps they can take is to reduce planet-warming methane emissions from their operations.
Tackling methane from oil and gas production is one of the most cost-effective ways to reduce greenhouse gas emissions. The IEA’s new report breaks down the investment needed to cut energy-related methane emissions 75% by 2030, in line with our pathway for achieving net zero emissions by 2050.
Some countries and companies have already demonstrated that achieving near-zero emissions from oil and gas operations is technically and economically possible. There are a growing number of initiatives, policies and regulations aiming to reduce emissions globally, and many reductions can be realised while saving money. However, overall progress has been much too slow, despite the record profits that the oil and gas industry made in 2022.
According to the IEA’s analysis, just over $75 billion in spending is required to meet the 2030 target for cutting methane emissions from oil and gas operations. That’s less than 2% of the net income that the industry accrued last year.
The IEA’s new report digs into the financial resources needed to deliver a sharp reduction in oil and gas methane emissions to 2030. That’s the year by which energy-related methane emissions need to fall by roughly 75%, according to our roadmap for achieving net zero emissions globally by 2050.