Despite the international agreement reflected by the historic COP28 “UAE Consensus” on the need to phase down fossil fuels to achieve crucial climate goals, oil is still projected to dominate the world’s energy mix for the next few decades. Producing oil, however, comes with its own carbon footprint in addition to the emissions from oil consumption.
The carbon intensity of oil production, typically measured in kg of CO2-equivalent per barrel of oil (kg CO2e/bbl), varies widely across fields and countries. According to the International Energy Agency (IEA), operational emissions from oil and gas production accounted for around 15% of energy-related greenhouse gases (GHG) worldwide in 2022 (5.1 gigatonnes CO2e). Some oil operations are extremely carbon-efficient, emitting only a few kg CO2e/bbl, while others, especially heavy oil with significant flaring, can emit hundreds of kg CO2e/bbl.
This article explores how the industry is measuring and reporting carbon intensity, the strategies being employed to reduce it, from operational efficiencies and electrification to cutting flaring, and the collaborative initiatives driving progress.
Measuring and Reporting Carbon Intensity
Accurately measuring and transparently reporting carbon intensity is the first step toward managing it. Carbon intensity is typically defined as the amount of GHG emissions (including CO2 and other gases like methane, expressed as CO2-equivalents) per unit of oil produced.
Oil companies calculate this metric for their operations on a life cycle or segment basis, often focusing on upstream emissions from extraction, separation, and processing up to the refinery gate. Standardized methodologies have been developed to ensure consistency. For example, the Oil Production Greenhouse Gas Emissions Estimator (OPGEE), an open-source tool from Stanford University, models upstream emissions for different fields, and the Greenhouse Gas Protocol along with industry guidelines (e.g., IPIECA/IOGP frameworks) provide common reporting standards.
By disclosing carbon intensity in sustainability reports or databases, companies can benchmark performance, track improvements, and demonstrate accountability. Transparent reporting also allows for comparison across regions. Studies have revealed a broad range of carbon intensities worldwide. Lighter oil produced with minimal energy input or powered by clean energy can have very low intensity, whereas heavy oils or those requiring energy-intensive recovery (and associated gas flaring) have high intensity.
In 2015, the global average upstream carbon intensity of crude oil production was estimated at about 10.3 grams CO2e per megajoule of crude (approximately 60 kg CO2e/bbl), with country averages ranging from roughly 3–4 g/MJ (e.g., Denmark, Norway) to over 20 g/MJ (e.g., Algeria) (Masnadi, 2018). More recent industry data indicate a global average on the order of 16–18 kg CO2e/BOE for upstream oil, as many operators have started to curb emissions (IEA, 2023).
Critically, methane emissions contribute a significant share, on average about one-third of upstream GHG emissions, so whether companies include methane (with its high CO2e factor) in intensity calculations can impact reported figures (Masnadi, 2018).
To build trust, many producers now report methane intensity (methane leaked as a percentage of gas produced) alongside CO2 and align disclosures with frameworks like the Task Force on Climate-Related Financial Disclosures. Such consistent reporting shines a light on leaders and laggards and creates pressure to improve.
By measuring and publishing carbon intensity, companies set a baseline for action. It enables them to identify the biggest emission sources in their operations—be it fuel combustion, gas flaring, or methane leaks—and to prioritize reduction strategies. Reporting also allows benchmarking against peers.
For example, Norway’s Equinor reports an average upstream carbon intensity of 6.7 kg CO2/BOE for its operated portfolio in 2023, which it notes is well below the industry average (Equinor, 2024). In the Middle East, ADNOC (Abu Dhabi) likewise achieved an upstream intensity of about 7 kg CO2e/BOE in 2022, placing it among the lowest-carbon oil producers globally (ADNOC, 2025).
Strategies for Reducing Carbon Intensity
Reducing the carbon intensity of oil production requires a multipronged approach. There are a number of operational strategies and technologies that companies can deploy today. In a 2023 analysis, the IEA identified several key measures to halve the emissions intensity of oil and gas operations by 2030, including cutting methane leaks, eliminating routine flaring, electrifying facilities with low-carbon power, and installing carbon capture where feasible (IEA 2023). Many producers are already pursuing these solutions. Broadly, strategies fall into the following areas.
Improving Operational Efficiency and Innovation
Optimizing energy use and minimizing waste in every aspect of production can yield big emissions gains. This starts with robust asset integrity, ensuring no hydrocarbon leaks or unnecessary venting, and extends to digitalization of operations. For example, advanced sensors, drones, and AI-driven analytics help detect inefficiencies or leaks in real time so they can be corrected.
Norway’s Equinor has deployed autonomous subsea robots and digital twins to monitor offshore facilities, reducing the need for fuel-intensive vessel trips. Better reservoir management and enhanced oil recovery (EOR) can also cut carbon per barrel. By increasing the oil recovery factor, companies get more output for the same energy input. However, some EOR methods (e.g. steam injection for heavy oil) are energy-intensive, leading innovators to work on modifying these processes. Solvent-assisted steam-assisted gravity drainage (SAGD) in Canada is one example. By co-injecting solvents with steam to extract bitumen, companies like Cenovus have been able to lower the steam requirement and thus reduce GHG emissions on the order of 30% per barrel compared to steam-alone operations. Such innovations improve both emissions and economics, since burning less fuel for steam saves money.
- Electrification and Renewable Power
A powerful way to cut upstream emissions is to replace on-site fossil fuel combustion (for compressors, pumps, generators, etc.) with cleaner power sources. Electrification of oil facilities involves powering operations via electricity, which can then be sourced from the grid or on-site renewables. In regions where the grid is low carbon (e.g., hydro, nuclear, solar), this can dramatically reduce operational carbon intensity. This can be seen in the North Sea where Norway has pioneered powering offshore rigs with hydroelectricity from shore, contributing to its ultralow production carbon footprint. Several platforms (such as Equinor’s Johan Sverdrup) are entirely electrified, resulting in mere single-digit kg CO2/bbl emissions. Similarly, ADNOC is now connecting its offshore operations to Abu Dhabi’s clean energy grid (which includes nuclear and solar) via undersea cables. ADNOC reports that using grid power enabled a 4.8 million tonne CO2 reduction in 2023, helping it achieve industry-leading low emissions (ADNOC, 2025).
Where grid power isn’t available, companies are installing on-site renewables: solar panels and wind turbines at remote well pads or production sites to supply a portion of energy needs. By shrinking the use of diesel generators or gas-fired turbines, electrification directly cuts Scope 1 emissions. It also future-proofs operations as grids around the world continue to decarbonize.
- Reducing Flaring and Methane Emissions
Perhaps the most critical lever for high-intensity producers is to tackle flaring and methane leaks. Gas flaring, the burning of associated gas at oil wells due to lack of utilization infrastructure, is a major source of upstream emissions (both CO2 from combustion and methane if flares are unlit or inefficient). Eliminating routine flaring can slash the carbon intensity of many oil fields, especially in places historically flaring large volumes.
Globally, flaring volumes have shown a very gradual downward trend. Satellite data indicate about 139 Bcm of gas was flared in 2022, a 3% decline from 144 Bcm in 2021 (World Bank, 2023). This occurred even as oil production rose that year, indicating some decoupling of flaring from production through better practices. Initiatives are underway to accelerate this progress. Many companies now invest in gas gathering and compression facilities to capture associated gas and route it to market or reinject it into reservoirs, rather than wasting it.
In Colombia, national oil company Ecopetrol has dramatically curbed flaring by implementing gas utilization projects contributing to an approximately70% reduction in Colombia’s flaring volumes between 2012 and 2022. The captured gas can be used for power generation or petrochemicals, turning a pollution source into economic value.
Alongside flaring, methane leakage is being targeted via improved detection (e.g., continuous monitoring with infrared cameras and satellites) and repair campaigns. Methane is a potent greenhouse gas, and the oil industry has launched programs like OGCI’s Aiming for Zero methane emissions initiative to push near-zero methane emissions by 2030. Technologies such as vapor recovery units on storage tanks, improved seals, and wet-gas compressors help to significantly cut fugitive methane.
Reducing flaring and methane is often the fastest way to shrink carbon intensity, since these emissions are essentially avoidable with the right investments and operating discipline.
- Carbon Capture, Utilization, and Storage (CCUS)
In some cases, deploying carbon capture can reduce net carbon intensity, especially for high-CO2 gas fields or processing facilities. CO2 separated from produced natural gas can be captured and injected into geological formations instead of vented. Several Middle Eastern producers, including ADNOC and Saudi Aramco, have implemented CCUS at gas plants and reinjected CO2 into oil reservoirs (sometimes for EOR).
While CCUS adds cost and is not yet widespread for routine operations, it can be a valuable tool to mitigate emissions where electrification or gas utilization isn’t sufficient. By capturing CO2 that would otherwise be emitted (for example, from steam generators or gas processing), CCUS directly lowers the emissions per barrel delivered. As carbon prices and climate policies strengthen, we may see more uptake of CCUS in upstream operations to meet intensity targets.
These strategies often work best in combination. For example, ADNOC’s onshore Shah oil field in the UAE, which in 2023 achieved a low carbon intensity of 0.1 kg CO2e/BOE, essentially near zero (ADNOC, 2025). This was accomplished through a bundle of measures: optimized field development, AI-driven energy management, electrification of operations with carbon-free power, and novel equipment like liquid ejectors to recover and use gas that would otherwise be flared.
While not every field can replicate Shah’s conditions, it demonstrates that with enough innovation, the operational emissions from oil production can be minimized to negligible levels.
Even for more conventional assets, steady improvements are yielding results. Equinor has steadily driven down its upstream CO2 intensity from about 9 kg/BOE in 2015 to 6.7 kg/BOE in 2023 (Equinor, 2024) and aims to reach approximately 6 kg/BOE by 2030. In Canada’s oil sands, major producers have formed the Oil Sands Pathways Alliance to work on decarbonization solutions (including CCS hubs) to significantly cut their per-barrel emissions over the next decade.
These efforts illustrate the industry’s recognition that lowering carbon intensity is not just environmentally responsible but increasingly essential for long-term competitiveness.
Industry Collaboration and Initiatives
Achieving substantial carbon-intensity reductions industrywide will require collaboration beyond individual company actions. The scale of the challenge and the urgency of climate commitments has driven oil producers to work together through various initiatives and partnerships.
A prominent alliance is the Oil and Gas Climate Initiative (OGCI), a consortium of 12 major oil companies representing a significant share of global production. OGCI members collectively set targets to lower their aggregate upstream emissions intensity and share best practices. Notably, OGCI announced a goal to reduce the average carbon intensity of members’ operations from a baseline 23 kg CO2e/BOE in 2017 to 17 kg by 2025. They have reported steady progress, reaching 18 kg CO2e/BOE in 2022, which is a 21% reduction since 2017 (OGCI, 2022). This has been achieved largely through cuts in methane leakage and flaring, as well as portfolio shifts and integration of renewables. Such collective targets send a strong signal and encourage lagging operators to step up. Importantly, when an OGCI member like Equinor, BP, or ADNOC implements a successful decarbonization project, the learnings can be disseminated across the group to accelerate wider adoption.
Another key collaborative effort is the World Bank’s Zero Routine Flaring by 2030 initiative. This public-private initiative, launched in 2015, has been endorsed by dozens of governments and oil companies pledging to end routine flaring within this decade. As of 2023, more than 40 oil companies, including supermajors such as Saudi Aramco, Shell, and ExxonMobil, and several oil-producing nations have committed to this goal (World Bank, 2023). Progress is monitored via the World Bank’s Global Gas Flaring Tracker.
The initiative has helped spur investments in gas capture infrastructure and regulatory changes. Following Ecopetrol’s endorsement of Zero Routine Flaring, the government of Colombia also joined the pledge and strengthened flaring regulations. Similarly, Nigeria has used the framework to reinvigorate efforts to utilize associated gas and has seen notable flaring reductions in recent years. While challenges remain, global flaring volumes must decline much faster to meet 2030 goals, this collective commitment has put flaring firmly on the agenda of CEOs and energy ministers alike.
Industry collaboration also extends to addressing methane. The Global Methane Pledge, launched at COP26 in 2021, saw more than 100 countries (including major oil producers) agreeing to cut methane emissions 30% by 2030. In parallel, OGCI’s Aiming for Zero Methane Emissions initiative and the Oil & Gas Methane Partnership (OGMP 2.0) framework bring companies together to adopt rigorous methane measurement and abatement practices.
By working through these forums, companies can align on protocols (e.g., how to quantify methane leaks) and support new technologies such as satellite monitoring for super-emitters. It also creates a platform to engage with policymakers on sensible regulation.
Finally, collaboration is crucial in driving innovation and knowledge transfer. Organizations like SPE and the International Association of Oil & Gas Producers (IOGP) facilitate technical exchanges on emission-reduction techniques. Joint industry projects and partnerships with academia help develop next-generation solutions, such as more efficient carbon capture solvents or low-carbon hydrogen for refinery processes. Even competitors are finding value in pre-competitive collaboration on climate tech, since reducing the carbon footprint of oil benefits the industry’s collective license to operate.
Collaboration also means engaging stakeholders beyond industry. Oil companies are increasingly partnering with governments on policies that incentivize lower-carbon operations like carbon pricing, methane fees, or tax credits for CCS. Some are working with power companies to co-develop renewable energy projects that can supply oilfield operations. And in the spirit of broader sustainability, operators are involving local communities in co-designing projects to ensure benefits (like electrification or gas utilization) extend to nearby populations. By aligning climate action with local development, companies can create shared value and gain community support for emissions-reduction initiatives.
For Further Reading
Global Carbon Intensity of Crude Oil Production by M. Masnadi, H. El-Houjeiri, D. Schunack, et al.
Emissions from Oil and Gas Operations in Net Zero Transitions, IEA. 2023
Equinor Presents 2023 Integrated Annual Report, 2024.
ADNOC Achieves Industry-Leading Carbon Intensity at Shah Oil Field Enabled by AI, 2025.
Cenovus Aims For 'Net Zero' GHG Emissions by 2050 by T. Seskus, CBC.
Global Gas Flaring Tracker Report, World Bank, 2023.
