Total is one of the ten members of OGCI*, a group of oil and gas companies who wish to ensure that their business strategy is in line with the objective to reduce their climate footprint. They met in Paris on 16 October to publish a joint declaration detailing the current context and efforts made, and outlining a roadmap for the future.
The OGCI is a very recent initiative. The first discussions, led by a handful of top names in the global oil and gas industry, were held during the Davos World Economic Forum in 2014. They led to the creation of the OGCI at the UN Climate Summit in New York on 23 September 2014.
Its 10 members, representing about 20 percent of global oil and gas production, have all acknowledged climate risk as a global economic issue. In fact, their companies are part of the international movement that wishes to limit global warming to a 2 degrees Celsius target.
Very often seen as part of the problem, the oil industry now wants to demonstrate that it can be part of the solution. In this spirit, the OGCI wants to share its commitments, communicate its actions and develop its long-term investments. An innovative vision for the oil and gas industry.
On 16 October in Paris, the OGCI brought together almost all of its members to make public a Joint Declaration. This declaration is a genuine roadmap for signatory companies (see box), and it represents, in Total CEO Patrick Pouyanné's words, "a commitment for our companies". It also states that it is mainly technology that will provide the solutions for the future and, on this point, Pouyanné added, "We would rather work together than compete."
The joint statement also recalls a number of important points.
The first is that OGCI companies have already conducted significant actions for reducing their greenhouse gas (GHG) emissions. Emissions have decreased by about 20 percent across their operations in the last decade. Significant investments have been made in natural gas, carbon capture and storage (CCS) and renewable energies, as well as in research and innovation to reduce GHG emissions. This includes halving routine flaring between 2008 and 2014. On this point, Pouyanné noted that "these figures speak for themselves. They are proof of the commitment made and of the trend in the right direction. We have reduced our greenhouse gas emissions by 20% and investments in the renewable sector over the last three years amounted to more than $10 billion ".
This is a pragmatic analysis which, and this is the second point, cannot ignore the fact that our world needs more and more energy. Population and economic growth will push demand up by 33 percent by 2030. The challenge for suppliers is to provide more energy, including access to energy for those who lack it, while reducing CO2 emissions.
While current investments, - gas, renewable energy management and reduction technologies - will greatly reduce the cost and impact on the climate for future generations, the signatories of the OGCI also want COP21** to help them meet these challenges and put them on the path to addressing climate change. The OGCI wants the upcoming climate negotiations to result in commitments that will give clarity and stability to the investments made.
"Neither the actions of the OGCI nor those of other industrial sectors acting alone can suffice to meet the challenges of climate change. This can only be achieved if each component of society contributes at its level," concluded Bob Dudley, BP's CEO, stating that "it will take time to transform energy models".
It is hoped that the OGCI will see a rapid increase in the number of its members in a strong sign of the industry's commitment to fight against climate change.
Partnerships and multilateral initiatives
Identify opportunities to speed up the implementation of solutions to fight against climate change by working alone or with others in collaboration with the UN, other multilateral organisations, governments and civil society:
* Oil and Gas Climate Initiative, whose ten members are: BG Group, BP, Eni, PEMEX, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil et Total.
** Paris, 30 November to 11 December 2015