Oil and gas industry needs to do more to address climate change, IEA report says

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The oil and gas industry needs to increase efforts to address climate change or risk becoming socially unacceptable and unprofitable, according to a new International Energy Agency report.

Pumpjacks pump crude oil near Halkirk, Alta., June 20, 2007. CALGARY -- The oil and gas industry needs to increase efforts to address climate change or risk becoming socially unacceptable and unprofitable, according to a"No energy company will be unaffected by clean energy transitions," said Fatih Birol, the IEA's executive director, in a statement Monday.

Some companies have taken steps to address climate change, but the report said the industry as a whole could do more. Approximately 15 per cent of the world's energy-related greenhouse gas emissions come from getting oil and gas out of the ground and to consumers, the report found.The most important and cost-effective measure would be to reduce methane leaks to the atmosphere, the report said. Other measures include integrating renewables and low-carbon electricity into new upstream and liquefied natural gas developments.

The industry has driven down per-barrel emissions in the oil sands by 32 per cent from 1990 levels, and has some of the lowest carbon intensive liquefied natural gas production on the planet, Abel said. The report said "low carbon electricity will undoubtedly move to centre stage in the future energy mix," but oil and gas project investment will still be needed. If investment stopped completely, output would decline by about eight per cent annually, which "is larger than any plausible fall in global demand."

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The sun controls the climate of this world not the oil and gas industry.

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