In the 10 months since then, both BP (BP.) and Royal Dutch Shell (RDSB) have set similar targets - albeit with some differing definitions and end-points for emissions counting as their own - and other midcaps have jumped on board too. Premier Oil (PMO) has gone one further and said it would offset its carbon production from new, operated projects within a decade. The company has said it was in “good stead” to reach this goal, although the current environment does not lend itself to building new projects.
Premier will have an easier job of it than others being solely an upstream producer and only by offsetting scope 1 and 2 emissions - this is the carbon released from its operations and that from its sources of power. Scope 3 would mean working out an offset to cover all the carbon contained in the oil and gas it sells on as well, which is usually a far greater amount, although Premier has only included its business emissions in this category, relating to its offices and air travel.
Having identified 10 years as its preferred time to get to net zero, the company has also picked its preferred offset mechanism: planting trees within the countries it operates in.
Airline passengers feeling guilty can do the same thing. The International Civil Aviation Organisation estimates one passenger taking a return trip from London to Mallorca is responsible for around 260kg CO2. Estimates about how much carbon a tree will take out of the atmosphere vary, but offsetting organisation Carbon Neutral goes by around 15 trees per tonne of CO2.
Imagining Premier wanted to offset its existing production as well, its scope 1 emissions last year were 976,000t CO2-equivalent. That’s a lot of trees to be planted, even before scope 2 emissions are included.
Carbon Tracker analyst Mike Coffin told us planting trees to offset emissions was a positive move by oil companies, but raised some limitations. “The scale of land required is vast,” he said. “[And] if companies are all saying they'll all be able to buy the same fields to plant trees there's huge potential to double, triple or quadruple count these fields in company plans.”
This isn’t a dig at Premier. It could have included its existing production but it has taken a first step.
Later this month BP will also put its head above the parapet further by spending three days outlining its own transformation efforts. Chief executive Bernard Looney said last month BP’s upstream production would come down 40 per cent by 2030 but the absolute emissions from products sold would keep climbing as the company expands its retail portfolio, so there are lots of competing issues for management there to juggle.
Hitting net zero carbon emissions is a noble goal for the oil and gas industry. But taking the view that planting a few trees, waiting until carbon capture technology gets cheaper or a reliable carbon pricing system arrives and saves the day is the wrong approach. Cutting your own absolute emissions is the place to start.