Collectively, we’ll only accomplish the UN’s 2030 Sustainable Development Goals with an all-hands-on-deck mindset. Yes, that does mean doing our part as individual consumers, but corporations are also responsible for stepping up to the plate.
Many companies are striving towards renewable energy and embracing more environmentally friendly practices. While some oil and gas companies are making strides toward renewable energy, they haven’t abandoned traditional fuel sources. Many are still producing and trading oil and gas but are now incorporating clean energy solutions into their business plans. Let’s look at some major oil companies progressing towards a greener and cleaner approach to energy.
Why Should Oil & Gas Companies Move Towards Renewables?
Photo by Jason Blackeye on Unsplash
The environmental benefits are the primary reason oil and gas companies should move towards renewables. Renewable energy sources are much cleaner than traditional fuel sources, as they do not produce carbon dioxide or other substances that can harm the environment. Additionally, many renewable energy sources are becoming increasingly cost-efficient – renewables were reportedly the world’s cheapest energy source in 2020 – meaning oil and gas companies can save money in the long run.
Why Are Renewables Better For Business?
Not only are renewables better for the environment, but they’re also better for business. By investing in renewable energy sources, oil and gas companies can diversify their energy portfolio and reduce their overall risk while still providing reliable power to customers. Additionally, by embracing clean energy solutions, these companies can stay ahead of the curve regarding new technologies and comply with government regulations.
5 Oil & Gas Companies Making Strides Towards Renewable Energy
1. Shell
Shell is one of the first major oil players that has made a real commitment to renewable energy. They have committed billions of dollars in investments towards clean energy sources such as solar, wind, and hydrogen technology while also purchasing and integrating renewable energy companies such as Nature Energy. They’re investing in renewables in crucial ways: wind, solar, electric vehicle (EV) charging, and more.
Shell is investing in developing and operating long-term commercial and industrial solar projects. For example, solar panel projects in Oman and Australia generate 25 and 120 megawatts, respectively.
Shell is also investing in developing and operating EV charging stations. The company currently operates roughly 90,000 charge points between homes, businesses, and Shell retail sites, but the company aims to use 500,000 by 2025.
Meanwhile, Shell delivers sustainable aviation fuel worldwide to airports, airlines, and aircraft operators.
2. BP
BP is a British oil and gas company that has also been investing significantly in renewable energy. Their focus on renewables includes bioenergy, EV charging, renewables, and carbon capture.
BP’s approach to low-carbon energy includes a plan to build a renewable energy capacity of 20 gigawatts by 2025, with a goal of 50 gigawatts by 2030. The company also aims to develop bioenergy solutions for land, air, and sea transportation.
BP has also entered the EV charging game with BP Pulse. Currently focused on the UK, BP offers 9,000 charging points nationwide, including 3,000 rapid chargers.
BP’s carbon capture initiatives include a project in Australia’s Cooper Basin, in which the company will aim to capture 1.7 million tons of CO2 annually.
3. Chevron
Chevron is an American energy company committed to lowering its carbon emissions and has set aside $10 billion for lower carbon project funding through 2028. Their 2021 corporate sustainability report outlined a 2050 net zero aspiration and a climate change policy framework.
The company has also mandated four environmental principles across the organization:
- Include the environment in decision making
- Reduce their environmental footprint
- Operate responsibly
- Steward their sites
These principles address seven aspects:
- Site residual aspects
- Waste
- Accidental releases
- Energy efficiency and greenhouse gases
- Natural resources
- Wastewater
- Air emissions
4. ExxonMobil
ExxonMobil is one of the world’s largest oil and gas companies and has been making significant investments in renewable energy in recent years. The company aims to achieve net zero greenhouse gas emissions in the Permian Basin by 2030., and worldwide aims to become net zero by 2050.
This greenhouse gas reduction plan involves a few components:
- 20-30% reduction in corporation-wide emission intensity
- 40-50% reduction in upstream emission intensity
- 70-80% reduction in corporation-wide methane intensity
- 60-70% reduction in corporation-wide flaring intensity
How Oil and Gas Companies Can Take Further Steps To Embrace Renewables
Photo by Andreas Gücklhorn on Unsplash
Though the measures some oil and gas companies have taken to go green can contribute to a better future for our planet, there is still much work to be done. Here are five additional steps oil and gas companies can take today:
1. Increase collaboration with renewable energy companies
Oil and gas companies should strive to be more collaborative in their approach to renewables, leveraging technology from other industries, such as battery storage and off-grid solar systems. For example, Imperial Oil has partnered with Enel X in hopes of reducing on-site emissions.
2. Focus on reducing emissions
The oil and gas industry still needs to reduce emissions. Finding ways to increase efficiency, reduce leaks, and capture excess emissions are key elements to achieving the climate change goals set by many countries. A “lifecycle approach” from production to processing and logistics has proven effective.
3. Invest in new technologies
New technology, such as carbon capture and hydrogen fuel cells, have enormous potential for reducing emissions. Oil and gas companies should invest in developing, developing, and implementing these technologies. Carbon capture investments are expected to grow significantly in the coming years, especially in the wake of the administration’s Infrastructure Bill.
4. Invest in renewable energy projects
Oil and gas companies should invest in renewable energy projects to help reduce their emissions and provide cleaner energy for the world. BP and Shell are among the major players who have taken major steps in this direction.
5. Advocate for renewable energy policies
In addition to investing in renewables, oil and gas companies should advocate for policy changes that promote using renewable energy sources. This includes increasing subsidies or tax breaks for renewable energy, setting higher renewable energy targets, and supporting adopting new technologies.
By embracing these five steps, oil and gas companies can help make a real difference in our fight against climate change. They have already shown that they can progress towards their goals and will continue to do so with more investment and effort. Together, with the right strategies in place, we can ensure that the future of energy is clean and responsible.
