Oil and gas is one of the key industries in any conversation
around decarbonization today.
Direct emissions from the sector account
for 10% of global emissions,
and oil and gas usage represent a further 35%,
While oil and gas will remain
part of the global energy mix,
a non combustion usage of oil and gas will remain necessity
over the coming decades.
Transitioning away from fossil fuels
is critical to address global warming
and keep the 1.5 degrees goal within reach.
Global competition is likely to continue to grow
as countries prioritize energy security
and develop more affordable
and lower carbon intensive oil and gas,
eventually calling for more selective investment conditions.
Middle Eastern companies
are already at the forefront of this race,
producing some of the world's cheapest and least
carbon intensive oil and gas in the world.
However, more can be done.
Improvements in energy efficiency,
flaring reduction,
methane emissions abatement
and transparency and reporting
remain the most cost efficient
and highest impact levers
in overall emissions reductions.
Methane has significantly greater global warming potential than CO2,
and is responsible for around 10% of energy
related greenhouse gas emissions.
We can reduce methane emissions by 40%
at low or no cost,
with existing technologies
on the path towards reaching near-zero methane by 2030.
COP28 accelerated the growing momentum in abating methane
from oil and gas operations,
building political commitment
and cooperation.
We've seen the private sector
and governments stepping up to accelerate methane abatement;
as 50 plus companies joined the COP28 Presidency’s call
to reach near-zero methane by 2030 and parties
agreed to include methane targets
within nationally determined contributions.
Now, in addition to decarbonizing its own operations,
the oil and gas industry has an important role
to play in the broader economy decarbonization,
through developing negative emission solutions,
deploying green technologies
such as renewables, low carbon hydrogen, e-fuels
and investing its technical and financial capabilities in the transition.
Delivering net zero is a critical priority
and a key differentiator
for oil and gas players in the region.
We're partnering with the whole ecosystem
to activate the full range of decarbonization levers
across the value chain,
while, of course,
always delivering strong business value.
From charting the most cost-effective decarbonization strategies
to accelerating carbon capture and storage
and green hydrogen projects,
we're bringing the best of our global capabilities
to drive regional success.
The Middle East has a primary influence
in shaping the global oil and gas sector
by pioneering the innovations of decarbonization
and capitalizing on its benefits.
The region will continue to lead the way
into the future of the sector.