The Catalyst Review May 2020 - 11

SPECIAL FEATURE II
milestone-five for BP itself and five to move the world to net zero. For BP itself, the new agenda seeks to:
*
*
*
*

Be "net zero" in C across operations on an absolute basis by 2050 or sooner
Achieve a "net zero" in C in O&G production on an absolute basis by 2050 or sooner
Reduce C intensity by 50% of all products sold by 2050
Install methane measurement systems at all BP O&G processing sites by 2033 and reduce methane intensity of operations by
50%
* Increase proportion of investments into non-O&G business over time.
The bottom line of this announcement is greater efforts to limit greenhouse gas (GHG) emissions from global O&G operations
and products. The aims seek efforts to provide low-C or no-C products for consumers. In making this pledge, BP is dismantling the
organizational structure and assigning teams to focus on decarbonizing energy and further investigate new value chains, such as
hydrogen and carbon capture, utilization and storage (CCUS).
In early March, a US major, Marathon Petroleum Corp. (MPC) released a similar pledge to reduce GHG emissions per barrel (BOE)
30% below 2014 levels by 2030. This O&G major went a step further and has linked executive compensation to achieving these goals.
MPC is focused on reducing environmental incidents and improving safety performance. Like BP, MPC is directing efforts to reduce
GHG emissions from its operations, including refineries, trucks, compressors and other equipment. Improving energy efficiency is a
key focus area. MPC plans include increasing biofuel shares in its product mix.
The Common Goals?
Going forward, many of the integrated O&G majors have common goals, as listed here:
* Increase early investment in new renewable technologies and
solutions
* Improve monitoring/reporting of methane emissions
* Limit GHG emissions from production and processing operations
and end products
* Increase renewable energy usage in production and processing
operations
Addressing climate change and
decarbonizing energy has many
pathways. As summarized in Table 1,
the major integrated O&G companies
are using several methods to meet
their sustainability and environmental
goals. EU companies (Total, Royal Dutch
Shell, and Eni) are investing in multiple
solutions. U.S.-based companies are
catching up. Yes, energy companies are
making progress. But the transition to
low- and no-C products involves huge
risks.

* Reduce methane emissions for production operations
* Lower venting/flaring from operations
* Provide more low- and no-C consumer products
* Support market-driven solutions and carbon taxes
* Improve leak detection and repair programs
* Optimize energy efficiency of operations

Table 1. Renewable investment strategies by O&G majors.

Sources: Company annual reports and "Which companies are ready for low-carbon transition?", CDP, November

ROI is Critical
The slow investment and adoption of renewable technologies is largely attributed to the long return on investment (ROI). R&D efforts
are improving efficiencies for wind and solar options. Yet, such endeavors still have low and slow ROI and can require a decade for
full payback. More R&D is needed to develop higher capacity and reliable renewable energy resources. Energy storage and battery
technologies still lag in required performance for a major role. Consumers demand reliability in all energy products and services.
Interruptions are unacceptable.
Hang-ups
Major O&G and energy companies are making great progress. However, the disruptive shift to renewable and decarbonized energy
needs more clarity for acceptance and support. There is too much confusion on the definitions of "green." Without firm and clear
The Catalyst Review

May 2020

The Catalyst Review May 2020

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