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Oil & Gas Sector Faces Urgent Call for Decarbonization Amid Growing Emissions Gap

The oil and gas industry is responsible for over 5.1 gigatons of CO2 emissions annually—about 10% of global greenhouse gas emissions. A new benchmark report on asset decarbonization reveals a growing divide between companies leading in emissions reduction and those falling behind.

Top-performing companies are on track to cut emissions by 23% by 2030 and are doing so at half the cost per ton of CO2e compared to their peers. In contrast, 40% of oil and gas assets have actually increased their emissions intensity over the past three years. Alarmingly, some are operating with higher emissions levels than they did three years ago.

To align with the 2°C climate target, the industry must double its current decarbonization rate—jumping from 10 kg to 20 kg of CO2e reduction per barrel of oil equivalent (boe) per year. This isn’t about small improvements; it’s a call for transformative change.

Companies that fail to adapt risk more than reputational damage. They could face stricter regulations, limited market access, and increasing financial liabilities. As global pressure mounts, asset-level decarbonization is becoming not just a climate imperative but a business-critical necessity.