Oil Groups Comment on IPCC Report

Oil Groups Comment on IPCC Report
OGUK, TIPRO, TXOGA and the IPAA share their views on the IPCC's latest report.

Industry body Oil & Gas UK (OGUK) has backed the United Nations’ Intergovernmental Panel on Climate Change (IPCC) report “for adding new impetus to the transition to low-carbon energy”.

OGUK said the UK’s oil and gas industry supports the findings of the report and its conclusion that the world must urgently move to a future based around low-carbon technologies. The industry body highlighted that the UK’s continental shelf is rapidly emerging as a global center for the development of these technologies and noted that the sector has committed to cut emissions from oil and gas production to net zero by 2050.

“The UK offshore oil and gas sector is changing as oil and gas companies are increasingly pioneering greener energy,” Deirdre Michie, the chief executive of OGUK, said in an organization statement.

“It’s vital we harness the sector’s 50 years of energy expertise to hit the government’s net zero targets but it’s important to remember that the Climate Change Committee has said we will still need oil and gas as part of a diverse energy mix to 2050 and beyond,” Michie added. “The aim is to use new technologies to make these traditional fuels acceptable in our low-carbon future,” Michie went on to say.

Also commenting on the report, the Texas Independent Producers and Royalty Owners Association (TIPRO) said the oil and natural gas industry is leading efforts with some of the proposed solutions outlined in the study, including carbon capture, storage and planting trees.

“The U.S. oil and natural gas industry continues to lead in efforts to reduce energy emissions through innovation, collaboration and more than $300 billion invested in greenhouse mitigating technologies over the past two decades throughout the value chain,” Ed Longanecker, the president of TIPRO, said in an organization statement.

“In the last 20 years, Texas-led innovation has allowed producers to meet record energy demand while reducing the greenhouse gas intensity of oil and gas. Texas-produced LNG is helping to lower emissions at home and abroad, and the Texas Railroad Commission just announced that we’ve achieved a massive drop in flaring – over 70 percent -  between 2019 and 2021,” he added.

“Additionally, methane intensity in the Permian Basin is down more than 70 percent in the last eight years. Nationally, methane emissions from U.S. energy production have declined 17 percent between 1990-2019, while oil and natural gas production has grown 66 and 96 percent, respectively,” Longanecker went on to say.

The TIPRO representative stated that the U.S. is a global leader in clean air and water, while producing the most environmentally responsible oil and natural gas on the planet. He added that the world will continue to need the “valuable commodity” for “decades to come”.

When asked for comment on the IPCC report, Todd Staples, the president of the Texas Oil and Gas Association (TXOGA), said, “protecting and improving the environment is of utmost importance to the Texas oil and natural gas industry, and focusing on policies and operations that deliver meaningful results toward environmental progress is key”.

“Investments in pioneering innovations and technologies have yielded steadfast climate progress, including the U.S. leading the world in reducing energy-related carbon dioxide emissions,” he added.

“Methane emissions rates were down nearly 70 percent in five of the nation’s largest oil and natural gas producing regions between 2011 and 2019, and voluntary, industry-led initiatives like the Texas Methane and Flaring Coalition continue to commit to maintaining the cleanest air quality in decades, such as setting a goal of ending routine flaring by 2030,” Staples went on to say.

Staples also noted that oil and natural gas are “indispensable to maintaining the quality of life we enjoy” and said the industry will “continue to be a leader in developing solutions”.

Responding to the IPCC study, Jennifer Pett Marsteller, the director of public affairs and communications at the Independent Petroleum Association of America (IPAA), said that natural gas production and use has created the cleanest air quality the United States has seen in two decades.

“The U.S. has become the envy of nations for its dedication to reliable, affordable, responsible energy production,” Marsteller said. “Independent producers recognize the need to manage their emissions, including methane emissions. Over the past several years, as methane regulations have been developed, IPAA has been active in trying to assure that the regulations are designed appropriately for the diverse elements of the industry, including the small business operations that dominate ownership of low producing wells,” the IPAA representative added.

The IPCC’s report stated that it was “unequivocal that human influence has warmed the atmosphere, ocean and land”. It also warned that “global warming of 1.5°C and 2°C will be exceeded during the 21st century unless deep reductions in carbon dioxide (CO2) and other greenhouse gas emissions occur in the coming decades”.

To contact the author, email andreas.exarheas@rigzone.com



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