Oil and Gas Climate Initiative (OGCI) is a voluntary, CEO-led initiative comprised of 10 oil and gas companies, that supply a fifth of world oil and gas production and nearly 10% of the world's energy. The objective of the initiative is to share best practices and technology solutions among the members to coordinate actions to reduce GHGs and increase investment in technologies that enhance energy efficiency, reduce methane emissions, and explore new solutions such as the carbon capture and storage or the development of renewable energies.
The initiative was created in January 2014 and was officially presented in September during the UNSG climate summit. The first report was published in October 2015 and the second report was presented in November 2016.
We joined the initiative in June 2015 as another way to show our commitment to fighting climate change. Our CEO, Josu Jon Imaz, signed the adhesion and leads our role in the initiative.
The main lines of work are as follows:
The OGCI initiative will make an unprecedented investment in the Oil & Gas sector of US$ 1 billion to finance businesses and projects that help to reduce the GHG emissions responsible for climate change.
The recently created fund will invest in the development of innovative technologies that, once marketed, will contribute in the future to significantly reducing GHG emissions. It will also work jointly with similar initiatives from other sectors and stakeholders.
In a common declaration, the leaders of the OGCI member companies reaffirmed their personal commitment to ensure that, thanks to the creation of this new fund, these companies will play "a key role in the reduction of GHG emissions while providing the energy society demands."
The two areas on which the activity of the OGCI investment vehicle will focus in principle will be the development and implementation of technologies for capturing, utilizing, and storing carbon; and the reduction of methane emissions throughout the value chain to promote the role of natural gas as a fuel for generating electricity.
Thanks to this fund, investments will also be made to support the enhancement of energy efficiency of our production processes and the reduction of energy and carbon intensity in transportation.
Reducing fugitive methane emissions is one of the most important issues in our sector: the greenhouse effect of this gas is 25 times more powerful than that of CO2. In order to address this issue, UNEP seeks to bring together different sectors through the ‘Climate and Clean Air Coalition’ to commit to improving air quality and, specifically, has launched a voluntary initiative to reduce methane emissions, specifically focused on the Oil & Gas sector. This sector ranks second in terms of methane emissions, after the agriculture sector.
In June 2016, we joined this initiative, through which we strive to boost the analyses of our emission sources and develop mitigation plans in order to align ourselves with the best standards available.
UNEP offers its support in all these tasks and also acts as our point of contact with the rest of companies, institutions, and governments that are also part of the initiative to eliminate barriers and find technically and economically feasible solutions to reduce methane emissions in our facilities.
Estimates made by the World Bank show that 140 billion cubic meters of natural gas are burned in flares each year. This means that over 300 million tonnes of CO2 are released into the atmosphere (a similar amount to that emitted by Spain or the state of Alberta, for example).
Sending gas to a flare or flaring is a safety measure that prevents overpressure at our facilities. However, at times and due to technical, regulatory, or economic limitations, part of the gas production can be flared. This is called routine flaring, which is different to flaring carried out for safety reasons.
The routine flaring of gas contributes to CO2 emissions and also a loss of product or fuel that is not used in our processes.
In June 2016 we joined the "Zero Routine Flaring by 2030" initiative launched by the World Bank, through which we are committed to find technically and economically viable solutions to minimize routine flaring by 2030.
Numerous governments, institutions, and other Oil & Gas sector companies also form part of this initiative, which allows us to collaborate with them in the search for opportunities and in the development of projects for reducing flaring.