Occidental commits to eliminating Scope 3 emissions
Occidental Petroleum wants to achieve net zero carbon emissions, both directly and indirectly, throughout its entire value chain by 2050, becoming the first US oil and gas producer to commit to such a standard.
The company said it would eliminate net direct and indirect emissions from its own operations — referred to as Scope 1 and Scope 2 emissions — by 2040. By 2050 the company plans to be also offset emissions from the burning of the oil and natural gas it produces, as well as emissions related to purchased goods and services, upstream and downstream transportation, investments, waste disposal, and leased assets, known as Scope 3 emissions.
"We expect our leadership in developing innovative technologies and services for carbon capture and sequestration will also help others achieve their net-zero goals, extending our impact well beyond our own emissions footprint," chief executive Vicky Hollub said during a call with analysts to discuss third quarter earnings.
Occidental's commitment to Stage 3 emissions puts it far ahead of its peers, which have started to take investor demands for addressing climate change more seriously. Last month, leading US upstream independent ConocoPhillips become the largest US oil producer to commit to a Scope 1 operational net zero carbon ambition by 2050.
A key to Occidental's efforts is its existing efforts at developing carbon capture and storage technologies, which formed from its legacy CO2 business that used the gas for enhanced oil recovery for many years.
In August Occidental and private equity firm Rusheen Capital Management formed a joint venture called 1PointFive to finance and develop a technology to capture carbon directly out of the air. The venture plans to build the world's largest direct air capture facility at a 100 acre site in the prolific oil producing Permian basin in Texas.
In 2018 Occidental also established a partnership with White Energy to capture CO2 produced at ethanol plants at Hereford and Plainview, Texas, and then transport it to Occidental's facilities in the Permian basin to be used for enhanced oil recovery while also storing the CO2 underground.
Hollub said 1PointFive could use the technology to help other companies offset their emissions, including the marine and air transport industries, as well as tech firms that operate large, power-hungry data centers.
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Italy’s NECP eyes 11pc of power demand from nuclear
Italy’s NECP eyes 11pc of power demand from nuclear
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Countries draft trade deal to address climate change
Countries draft trade deal to address climate change
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Reformed Australia safeguard scheme faces uncertainties
Reformed Australia safeguard scheme faces uncertainties
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Australia’s safeguard credit selling interest unclear
Australia’s safeguard credit selling interest unclear
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