Playing with fire: Measuring emissions from the world’s oil and gas fields
- 07 December 2021 (10 min read)
Highlights
- There are significant differences in the greenhouse gas (GHG) footprint of oil and gas fields
- Apart from so-called heavy oil fields, the geological nature of the resource is not connected to the GHG footprint
- For both crude oil and natural gas production, methane emissions are the main driver of GHG intensity. For crude oil, flaring of associated gas is another major source of GHGs
- The extent of flaring and escaped methane differs greatly based on the interplay between geography and regulation. Countries with strong regulatory oversight, such as Norway, rank well, while areas with less rigorous rules, including Iraq, Algeria, and Texas, perform poorly
- We believe an assessment of GHG intensity and practices around venting and flaring at oil and gas producers should be a central part of any climate engagement by investors
- Investors can and should favour producers with the lowest GHG intensities
Disclaimer
This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
© 2021 AXA Investment Managers. All rights reserved.