Nearly every industry is looking to reduce its carbon footprint, and the oil and gas (O&G) industry is no exception. There is one way that the O&G industry does stand out – it’s one of the biggest culprits when it comes to GHG (greenhouse gas) emissions, and therefore must make efforts to lead the way in emission abatement. In this special report, Boston Consulting Group explains how AI, machine learning and other advanced analytics can make the process of decarbonization easier.
The oil and gas (O&G) industry is responsible for nearly half of global GHG (greenhouse gas) emissions, and shareholders are taking note.
Communities around the globe are applying pressure to the O&G industry to reduce emissions, including regulators, activist investors and employees. In some areas, governments have withheld operating licenses for companies that aren’t making emissions reductions, or courts are pushing for more rapid emissions reductions. Fund manager BlackRock is actively rejecting board directors who haven’t taken enough action to decrease GHGs.
About 10% of the world’s GHG emissions are the result of direct, scope 1 emissions from O&G industry operations. Indirect scope 2 and 3 emissions account for about 31% of the rest of GHG emissions...
Mike Lyons, Santosh Appathurai, Martha Vasquez, Lukasz Bolikowski, Pedro Alcalá, Francesco Carducci and Nicholas Tarabelloni are professionals with the Boston Consulting Group.
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