The Oil and Gas Climate Initiative (OGCI), made up of CEOs of ten major oil and gas companies, on Friday announced an investment of $1 billion over the next ten years, to develop and accelerate the commercial deployment of innovative low emissions technologies.
The CEO-led organization was designed to catalyze practical action to reduce greenhouse gas emissions following discussions during the 2014 World Economic Forum Annual Meeting, and was officially launched at the UN Secretary General’s Climate Summit in New York in September 2014.
It is currently made up of ten oil and gas companies – BP, Shell, CNPC, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Statoil, and Total – that together represent one fifth of the world’s oil and gas production.
OGCI Climate Investments’s aim is to deploy successfully-developed new technologies among member companies and beyond. It will also identify ways to cut the energy intensity of both transport and industry. Working in partnership with like-minded initiatives across all stakeholder groups and sectors, the OGCI CI believes its emission reduction impact can be multiplied across industries.
In a joint statement, the heads of the 10 oil and gas companies that comprise the OGCI said: “The creation of OGCI Climate Investments shows our collective determination to deliver technology on a large-scale that will create a step change to help tackle the climate challenge. We are personally committed to ensuring that by working with others our companies play a key role in reducing the emissions of greenhouse gases, while still providing the energy the world needs.”
According to the statement, this investment represents an unprecedented level of oil and gas industry collaboration and resource-sharing in this space. This new, additional investment will complement the companies’ existing low emissions technology programs and will draw on the collective expertise and resources of the member companies.
Through discussions with stakeholders and detailed technical work, the OGCI has identified two initial focus areas: accelerating the deployment of carbon capture, use and storage; and reducing methane emissions from the global oil and gas industry in order to maximize the climate benefits of natural gas. The OGCI said it believes that these are areas where the oil and gas industry has meaningful influence and where its collaborative work can have the greatest impact.
Beyond this, OGCI CI will make investments that support improving energy and operational efficiencies in energy-intensive industries. OGCI CI will also work closely with manufacturers to increase energy efficiency in all modes of transportation.
A CEO and management team for OGCI Climate Investments will be announced in the near future. The closing of OGCI Climate Investments is subject to customary conditions including regulatory clearances as required.