Right now, 40% of the world energy mix goes on oil and 23% goes on gas which makes these two energy sources key elements to the global energy system and serious economic and social development drivers. However, both oil and gas industries have a big negative environmental impact and they contribute to about 50% of all greenhouse gas emissions. So what can oil and gas companies do to support the Sustainable Development Goals? 

There are serious investments in NCS

Today, some companies include natural climate solutions (NCS) into their operational strategies. NCS has the ability to reduce greenhouse gases (GHG) released during land management, and reduce or even eliminate CO2 from the atmosphere. Unfortunately, only BP and Shell are serious about these NCS efforts, but it is still a step in the right direction. These two companies recognize that long-term initiatives are more effective than smaller projects, so they are focusing on reducing deforestation and investing in reforestation, soil and agriculture management improvements. Some scientists concluded that even a smaller reduction in GHG (one-third of the total amount) can help us stay in line with the Paris Agreement. Also, visit HMA Group.

Gas is more eco-friendly

Natural gas is a fossil fuel, but it is a much cleaner and efficient source of energy than oil or coal. It produces less pollution and lowers the GHG emission, i.e. 45% less CO2 than coal, 30% less than oil and 15% less than wood. In certain parts of the world, gas produces lower sulfur and NOX emission (for instance, Australia). Many companies are working with their clients on developing new technological discoveries and designing new facility modifications that will boost capacity and maximize gas recovery. 

Oil companies are improving the production process

While production process improvements do not make oil any greener, they boost the sustainability of the industry. Oil companies are investing in quality facilities and more effective machinery that can make extraction processes more efficient and cost-effective. In order to boost productivity and reduce waste, they are investing in better oilfield equipment that allows faster and more effective drilling, collection and transport. Additionally, high-quality parts have a longer life and can reduce the waste and pollution of various other industries. Quality equipment improves the capacities of existing fields, reduces inefficiencies and allows lower energy expenditure. 

Companies are branching out

Many companies that produce gas or oil are branching out and diversifying their assets by investing in alternative energy forms. For instance, in some parts of the world, the number of people who want to invest in solar or wind energy to reduce pollution and electricity costs is fairly large, so companies are following the profit. While this diversification is mostly driven by cost and demand, it is still a positive development. Since these companies are investing in renewable energy generation, they can also start producing clean energy for their fields and leave diesel and coal energy in the past. This is very beneficial, especially for remote sites where fuel transport produces a lot of pollution. These sites usually have a lot of land available for solar or wind resource development. 

Companies are increasing transparency

The larger the company, the more scrutiny they can expect to come under, mainly from environmental groups. For instance, Exxon Mobil and Pioneer are two companies under fire from various organizations. To prevent scrutiny, they decided to boost transparency when it comes to their operations. For instance, Pioneer started a sustainability report in 2017. All over the world, governments are tackling carbon emission, and Pioneer’s report can improve their position on the market by showing plans to break into the renewable resource market. 

Since we know Pioneer has access to some of the lowest-cost coal shales in the States, it will allow them to branch out into the sustainable industry even if oil demand levels fall to a quarter of their current level. Pioneer plans to utilize the land on their reserves and lease it to wind and solar facilities which will give them a dual benefit from all the acres of land they own. Exxon Mobil is also planning to release various reports while British BP plans to invest hundreds of millions of dollars into solar companies. 

Companies are boosting their social investments

Many companies are taking the initiative and tackling various social issues. While this is not directly connected to the Sustainable Development Goals, it helps in the long run. For instance, the oil and gas company Eni is working on the promotion of the Green River Project in Nigeria which wants to increase food, employment, earning and social service opportunities through vocational guidance, training and technology.  With this initiative, Eni is contributing to the SDG 2, or Zero Hunger goal. On the other hand, Total is investing in companies in Tanzania and Kenya which deal with solar power energy and offer solutions for rural area energy problems. Investing in renewable energy and supplying it to remote communities in developing countries, this company contributes to the SDG 7 or the Affordable and Clean Energy goal. 

They are also increasing their voluntary programs. One such program is called Rigs for Reefs and it has a goal to topple and sink old rigs to create new coral reefs. This program already handled around 500 abandoned rigs creating the ideal habitat for coral and the many fish that live on the reef. Other voluntary programs oil and gas companies are supporting are the EPA’s STAR program and OSHA’s voluntary protection programs. 

Wrapping up

Oil and gas industry has a lot of potential to help the UN reach the set Sustainable Development Goals in the next ten years, especially when it comes to clean and affordable energy. However, companies need to continue investing in social issues and philanthropy, but they also need to extend their reach and fully integrate the principles of SDG into their company strategies, operations and practices. Oil and gas companies are key to economic and social development that will result in a green future for all of us.