The oil and gas industry has a key role to play in the production and adoption of cleaner, lower-carbon and alternative fuels and decarbonisation technologies to help these hard-to-abate sectors to lower emissions and advance the energy transition.
On road transport, the industry is working with the automotives industry to develop more efficient engines and low-carbon mobility technologies such as electric vehicles, biofuels, liquefied natural gas, ammonia and hydrogen fuel-cells.
The International Maritime Organization (IMO), which regulates shipping on behalf of the United Nations, published its revised greenhouse (GHG) strategy in 2023, which includes an enhanced ambition to reach net-zero GHG emissions from international shipping close to 2050.
The industry is leading on low-carbon shipping fuels, such as liquefied natural gas and sustainable biofuels, which can be used with existing engines and infrastructure. Given their experience with hydrogen, oil and gas companies are also well placed to scale up the development of ammonia as a fuel for long-distance shipping.
In the aviation sector, deep GHG emissions reduction will require alternative fuels. The UN specialised agency for aviation, the International Civil Aviation Organization (ICAO), recognises sustainable and lower-carbon aviation fuels as important GHG mitigation measures for the sector, and have included them as eligible fuels for the Carbon Offsetting Reduction Scheme for International Aviation (CORSIA) programme. Ipieca members are leading the development of sustainable and lower-carbon aviation fuels, producing them within their own refineries and partnering in joint ventures to construct new sustainable aviation fuel plants.