WPB: Efforts to reduce carbon emissions within the oil and gas industry have remained a contentious and urgent issue for years. in 2025 — a significant benchmark year for climate goals — uncertainty looms: will companies revise their targets downward, stick to current trends, or double down on decarbonization? The course and extent of action taken will ultimately decide whether these firms can meet their short-term emission goals and advance meaningfully toward long-term net-zero aspirations.
A number of oil and gas companies have earmarked 2025 as the deadline for achieving interim cuts in Scope 1, 2, and 3 emissions, making this year critical for assessing the sector’s environmental performance. However, not all firms rely on consistent or independently verified methodologies when setting or measuring targets. The diverse and often complex approaches used to track and reduce emissions can undermine both the transparency and comparability of these climate commitments.
According to research from Rystad Energy, 120 major oil and gas companies each follow their own unique emission reduction roadmap. In 2024 alone, their upstream operations generated more than 630 million tonnes of greenhouse gases, accounting for roughly 58% of the industry’s total emissions for the year.
In response to mounting pressure, both international energy giants and smaller, regionally focused or state-owned firms have revised their business models to include decarbonization plans. Many of these players have publicly disclosed their strategies and set interim reduction targets for 2025 — with over 20 companies aiming to cut emissions, especially in Scope 1 and 2 categories, by then. Some have already hit these benchmarks ahead of schedule. For instance, BP, TotalEnergies of France, and U.S.-based Expand Energy surpassed their goals as early as 2023. BP reduced its absolute emissions by 41% — more than double its original 20% target — while Expand outperformed its own goal by 14%.
Yet, despite this earlier success, BP has seen its Scope 1 and 2 emissions rise for the second year running, with a 5% increase in 2024 compared to 2023. The company attributes the uptick to several new or expanded projects launched during the year. This raises concerns over whether such setbacks will persist, particularly since BP no longer intends to decrease its overall hydrocarbon production.
Although setting emissions targets is a fundamental part of corporate planning, the real measure of progress lies in understanding where companies began, how they performed, and the methods they used to reach their goals. These factors should play a central role in guiding strategic decisions.
Rystad’s assessment divides the 120 companies into different categories to track how emission levels have evolved over the past five years. Their analysis of upstream CO₂ trends between 2019 and 2023 reveals wide variation. Among national and international oil companies (NOC/INOC), European firms like Equinor, OMV, and MOL have notably decreased both their total emissions and emission intensity. Meanwhile, Russian companies such as Gazprom and Rosneft have seen increases in both areas since 2019. Similar patterns emerge across global independents and regional operators, suggesting that local conditions and business environments heavily shape emission outcomes.
US and European energy majors stand out for delivering the most notable improvements. Frequently under intense scrutiny regarding their environmental efforts, these firms have implemented a range of tactics, including asset sales, operational upgrades, electrification, flaring minimization, and methane leak mitigation. For example, TotalEnergies has reduced emissions through the closure of combined-cycle gas turbine plants, expanded use of electric systems, and the discontinuation of routine flaring at specific sites like Nigeria’s OML 100.
The road to decarbonization in oil and gas continues to be a complex, heavily discussed journey. As 2025 draws near, it remains to be seen whether this moment becomes a turning point for intensified action, a plateau in progress, or a reality check prompting target recalibration. The path chosen will define not just near-term achievements, but the broader role these companies play in the global transition to net-zero.
By Bitumenmag
Oil, Bitumen, Company
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