Ten major oil and gas firms have set up a $1 billion fund to support the development of new technology to combat greenhouse gas emissions.
The Oil and Gas Climate Initiative, to which Saudi Aramco, BP, ENI and Statoil have all signed up, announced Friday a commitment to spend $1 billion over the next 10 years on initiatives to reduce carbon emissions. The investment will be applied to carbon capture, use and storage technology as well as to cut methane emissions. However, it does not include support for renewable energies, such as solar and wind.
Amin Nasser, chief executive Saudi Aramco, was clear to stress that the $1 billion fund is a starting point. He added, "This is the first time 10 companies are bringing in investment and bringing in their scientists and (choosing) not to worry about rivalries. (We are) saying, work together, develop technologies and the aim is climate change and reducing the emissions going forward."
Repsol CEO, Josu Jon Imaz, agreed, saying this was the start of a process.
He went on to say, "The $1 billion is an important figure. In quantitative terms we intend to have a seed, some kind of a catalyst. Working together with venture capitals, private funds, the academy and so on to try to amplify the effect of this fund."
Claudio Descalzi, chief executive of ENI, told journalists in London: "We can't stop using oil, fuel and gas overnight. We have to be realistic."
The 10 firms opted to work within their core areas and competencies, they claimed.