Oil majors commit $10bn to carbon storage plans to combat climate change

Fri 04 November 2016 View all news

Ten of the world's largest oil companies have announced plans to establish a new $1 billion green investment fund which will initially focus on deploying carbon capture, use and storage, reducing methane emissions from oil and gas operations and improving energy efficiency in both transport and industry.

The Guardian reported that support will not, however, be given to renewable energy, smart grid and storage technologies which are revolutionising the electricity industry. 

The companies,BP, CNPC, Eni, Pemex, Reliance Industries, Repsol, Shell, Saudi Aramco, Statoil and Total together form the Oil and Gas Climate Initiative (OGCI) and make up 20% of global oil and gas production said the funds will develop and accelerate the commercial deployment of technologies that have the potential to significantly reduce emissions. The OGCI was established in 2014 with the aim of leading the industry response to climate change. 

Bob Dudley, chief executive of BP and OGCI chairman, said: “We all absolutely realise the world will move to a low carbon world. Don’t worry, we got it. The technology to monitor and reduce fugitive methane [gas] emissions, that is an essential licence for us to advocate for natural gas.”

However, green groups have criticised the announcement. Jonathan Marshall, energy analyst at the Energy and Climate Intelligence Unit, a UK-based thinktank, said: “Investing $1bn over 10 years averages to just $10m per year per company involved. This figure is a drop in the ocean.” 


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