Oil, gas industry can deliver more emission cuts: OGCI

Spanish Market: Crude oil, Emissions, Natural gas
01/10/26

Major oil and gas companies meeting their 2025 carbon and methane intensity targets shows the wider industry can deliver further emissions reductions from operated assets, although financial and geopolitical obstacles remain, the industry-led Oil and Gas Climate Initiative (OGCI) said today.

The 12 OGCI members reduced their average upstream carbon intensity from operated assets to 16.5kg of CO2 equivalent per barrel of oil equivalent (CO₂e/boe) in 2025, from 17.2kg CO2e/boe in 2024. The group's voluntary target was to reach or be below 17kg CO2e/boe last year.

Their collective upstream methane intensity was 0.13pc in 2025, compared with 0.12pc a year earlier, meeting their ambition to stay below 0.20pc. Methane intensity is calculated as emissions from operated upstream assets as a share of marketed gas.

OGCI members comprise state-controlled Saudi Aramco, BP, Chevron, China's CNPC, Italy's Eni, Norway's Equinor, ExxonMobil, US firm Occidental, Brazil's Petrobras, Spain's Repsol, Shell and TotalEnergies.

The members' total operated scope 1 emissions, including from downstream operations, fell to 542mn t of CO2e in 2025, from 545mn t a year earlier and 709mn t in the 2017 base year.

Their upstream methane emissions fell to 760,000t in 2025 from 1.95mn t in 2017.

Operated oil and gas production from the 12 companies rose by 3pc on the year to 43.4mn boe/d in 2025, equivalent to around 24pc of global output. But their operated upstream assets accounted for only 1pc of methane emissions from global oil and gas operations, according to OGCI.

"We continue to believe that flaring can come down for the OGCI members and the industry at large," OGCI executive committee chairman Bjorn Otto Sverdrup said.

The biggest opportunity for OGCI members to reduce flaring further is through their non-operated joint ventures and partnerships, he said.

The firms reduced upstream gas flaring by 62pc from 2017 levels to 9.2bn m³ in 2025. Routine flaring fell by 74pc from its 2018 baseline to 1.45bn m³.

The companies are showing that methane emissions can be reduced across oil and gas assets globally, OGCI managing director Julien Perez said.

OGCI also acts as the secretariat of the Oil and Gas Decarbonization Charter (OGDC), giving it direct links to national oil companies (NOCs) in emerging economies. A total of 56 oil and gas companies have signed the charter since its launch at the UN Cop 28 climate summit in 2023.

Awareness of methane leaks is essential to fixing them, and so access to data, measurements and detection technologies including satellites and drones is crucial, Perez said.

OGCI is helping companies outside the initiative by using aircraft to assess leaks, supported by data from non-profit organisation Carbon Mapper, as well as providing advice.

Financing constraints, geopolitical pressure

Many methane leaks can often be reduced without mobilising large sums of capital, but in some cases it requires substantial spending, Perez said.

The operating environment and the regulatory landscape vary from country to country, and for some NOCs, allocating capital to reducing methane leaks is not easy, he said, pointing out that the cost of debt is much higher for firms in developing countries.

"It is a long process, and they need finance and raise debt," Perez said.

OGCI is working closely with the World Bank's Global Flaring and Methane Reduction Partnership fund to lower financing costs for these companies.

But geopolitical and sanctions restrictions prevent OGCI from working in some countries where methane leaks are known to be substantial, according to Perez. The UN has more capacity to address the potential for emissions reductions in those countries, Perez said.

"The geopolitical context has been challenging with the Ukraine crisis and now the crisis in the Middle East, but the message from the CEOs [in the OGCI] is to stay the course" on reducing emissions and flaring, Perez said.

The Middle East conflict is particularly challenging for Gulf oil and gas companies, "but we have not seen changes in their desire to maintain a clear focus on the goals they have set", he said.

By Caroline Varin

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01/10/26

Canada fast-tracks 1mn b/d Pacific Link pipeline

Calgary, 1 October (Argus) — A proposed 1mn b/d oil pipeline from Alberta to Canada's west coast is a "project of national interest", prime minister Mark Carney said today, putting it on a path to fast-track approval. The federal government is referring the planned pipeline, now called Pacific Link, to the Major Projects Office (MPO), which will review the project application over the next year. The MPO is designed to eliminate duplication and slash a lengthy approval process that existed before the federal government would finally weigh in. "We're making our position clear at the beginning of the process, rather than at the end," Carney said. The MPO, with support from the Canada Energy Regulator (CER), will aim to finalize the conditions for the pipeline by 1 September 2027, "clearing the way to get shovels in the ground", the prime minister said. Pacific Link is designed to carry Albertan crude to an expanded Roberts Bank Terminal in metropolitan Vancouver, British Columbia. Importantly, the terminal will be able to accommodate very large crude carriers (VLCCs) capable of hauling up to 2.2mn bl, allowing oil sands producers to connect with buyers in Asia-Pacific more efficiently than they can with the existing 890,000 b/d Trans Mountain pipeline, which ends at a terminal limited to Aframax-sized vessels that can haul up to 750,000 bl. Canada's exports to non-US countries have more than doubled since Trans Mountain Expansion pipeline came online in May 2024, even with its terminal being limited currently to loadings of 550,000-600,000 bl because of draft restrictions that should be resolved early next year. Pacific Link will "materially reduce" dependence on the US, the current destination of 90pc of Alberta's oil, and play a key role in helping Canada double its non-US exports over the next decade, Carney said. Alberta, which first conceived the project, has estimated Pacific Link will cost C$35.2bn-C$43.7bn ($25bn-$31bn) to build. If approved, Pacific Link could be completed between 2032 and 2034. Alberta, through its Alberta Petroleum Marketing Commission (APMC), and Canada, through Trans Mountain, will hold majority interest in the project with Calgary-based Pembina Pipeline owning 10pc. Indigenous communities will be offered a minimum 10pc stake. Project development will be led by Trans Mountain. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US imports of Venezuela oil top 700,000 b/d in July

01/10/26

US imports of Venezuela oil top 700,000 b/d in July

Houston, 1 October (Argus) — US crude imports from Venezuela continued to ramp up in July, rising by 11pc from the prior month, with refiner Valero as the top taker, according to Energy Information Administration (EIA) data. Total Venezuelan crude imports in July averaged 701,000 b/d, rising from 630,000 b/d in June and the highest volume since May 2017, the EIA said in its latest Petroleum Supply Monthly report. Imports of Venezuelan crude have ramped up this year since the US capture of former Venezuelan president Nicolas Maduro in early January and the subsequent lifting of sanctions on that country's crude exports. Previously, only Chevron held a special waiver from US sanctions to operate in Venezuela, limiting imports. Valero was the largest US recipient of Venezuelan crude in July, with a total of 282,000 b/d at three refineries — its 290,000 b/d Corpus Christi and 385,000 b/d Port Arthur refineries in Texas, and its 215,000 b/d St Charles plant in Louisiana, EIA data show. Citgo took the second-largest amount of Venezuelan crude in July with 112,000 b/d, while PBF Energy was third at 84,000 b/d. Other US refiners and trading companies that took Venezuelan crude in July included Phillips 66, Chevron, ExxonMobil, Marathon Petroleum, Pemex-owned Deer Park Refining, and Atlantic Trading and Marketing, according to the EIA data. While US refiners continue to take Venezuela crude, investment curiosity in that country is building, even as many companies also sound caution. Continental Resources, the US independent oil and gas firm founded by shale billionaire Harold Hamm, said last month that it plans to operate and develop a crude block in the Orinoco belt with Venezuela's state-owned PdV. Chevron has agreed to spend more than $7bn over the next five years to double its production from Venezuela. In addition, the White House announced a deal last month in which the US would take a 35pc stake in a little-known company purporting to invest $100bn in 17 Venezuela oil fields in exchange for promising to buy at least 20pc of future production at cost. Oil services companies are also making moves into Venezuela. Oilfield services giant Halliburton said last week that it signed agreements with Eneva, Brazil's biggest private natural gas operator, and engineering company West-Construcciones to support energy projects in Venezuela. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU warns against ETS price controls

01/10/26

EU warns against ETS price controls

Brussels, 1 October (Argus) — Brussels has warned that proposed changes to carbon-market intervention rules could weaken the EU emissions trading system (ETS) and has criticised broader free allocation exemptions in the European Parliament's draft reform package, but the European Commission has broadly welcomed German centre-right EPP lawmaker Peter Liese's draft report ahead of internal parliamentary negotiations. The proposed changes to the excessive price fluctuation mechanism under Article 29a of the ETS directive would ultimately weaken the bloc's carbon market, a senior commission official told the European Parliament's environment committee today. "Trying to engineer a carbon price through frequent market intervention will lead to less cost effectiveness and will reduce market and investment predictability. It will ultimately weaken our well-designed ETS system," said Rosalinde van der Vlies, director for carbon markets and clean mobility at the commission's climate directorate. Van der Vlies also criticised Liese's proposal to broaden exemptions from conditionality requirements for free ETS allocations granted to installations among the 40pc most efficient facilities in a sector or sub-sector. "We want to stop being in the business of handing out free lunches," she said, while acknowledging Liese's "very solid report" and his efforts to build a majority in the parliamentary committee. While Liese's draft proposal "may not be perfect", he said he was open to ideas to improve it. "But we need to work fast," he said. EU states are eyeing agreements on their position on ETS reform for a meeting of climate and environment ministers on 11 December. A key priority for Liese is ensuring member states make more effective use of ETS revenues. "Too much of their money has not been used efficiently enough," he said. On aviation, Liese said including flights to the US and Asia within the ETS could have triggered "serious" reactions from third countries. "The 5,000km approach improves environmental integrity while being fairer to European hubs and tourist regions. But the devil is still in the details," he said. On maritime transport, Liese said the commission had proposed a sound approach. "We are looking at improvements, particularly to protect European ports against evasion," he said. On waste, Liese noted parliament has repeatedly called for waste incineration to be included in the ETS, but said a 2028 start date would be too early. "The commission's gradual approach towards 2034 is more pragmatic," he said, adding that member states should use the intervening period to prevent waste being diverted to landfill. "I don't believe that the commission's proposal, nor Liese's proposal, will fulfil the climate law," Dutch S&D lawmaker Mohammed Chahim said. Chahim, who is drafting parliament's opinion on reform of the carbon border adjustment mechanism, noted that both member states and parliament had approved the EU Climate Law. "And then they come with legislation that breaks the climate law," he said. Chahim argued that under the current proposals, sectors covered by the effort-sharing regulation would have to deliver deeper emissions cuts if the ETS is to achieve its 2040 target. "That's agriculture, that's transport, that's all non-ETS sectors," he said. Far-right Patriots lawmaker Mathilde Androuet said Europe's decarbonisation targets remain overly ambitious. "We cannot shift the industrial burden on to agriculture and transport, which are already struggling," she said. Androuet called for the annual reduction rate of ETS allowances, known as the linear reduction factor, to be cut to 1.7pc for 2031-35 and to 1.3pc from 2036, and from 3.7pc and 1.7pc proposed by the commission, respectively. The Patriots group also opposes the inclusion of municipal waste incinerators in the ETS and rejects conditions attached to member states' use of ETS auction revenues, particularly minimum spending requirements. "States must remain free to allocate these resources," Androuet said. She also voiced opposition to extending the ETS to international flights. Lawmakers have until 6 October to offer amendments to the draft report. The environment committee is expected to vote on its position on 1 December, followed by a plenary vote later in the same month. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Saudi East-West crude pipeline at 5.5mn b/d: Source

01/10/26

Saudi East-West crude pipeline at 5.5mn b/d: Source

Dubai, 1 October (Argus) — Crude flows through Saudi Arabia's East-West pipeline have recovered to around 5.5mn b/d, according to a source, allowing for a restart of exports from the Red Sea port of Yanbu. The 7mn b/d capacity pipeline, on which Saudi Arabia had been relying to export crude since the US-Iran war disrupted seaborne movements through the strait of Hormuz, was shut on 10 September after a drone strike. Riyadh has yet to issue a formal damage assessment. Sources said three of the line's 11 pumping stations had sustained damage, one significantly. The pipeline itself sustained no damage, they said. Repairs to the most severely affected station would take weeks, they said. But state-controlled Saudi Aramco created a temporary bypass pipeline to route the crude around that station and the pipeline is today running at more than 75pc of capacity. The pipeline carries crude from Saudi fields and oil processing facilities near the Mideast Gulf to Yanbu for export, and supplies refineries, power stations and desalination plants on the Red Sea coast. Prior to the US-Iran war, 1.5mn-2mn b/d of crude would typically go through the line to feed those plants. But runs at Saudi Red Sea refineries have been reduced in recent weeks, primarily because Aramco shut its 400,000 b/d Jizan refinery following an attack in early September. At current flow rates, Argus estimates crude available for export at Yanbu is around 4mn-4.5mn b/d. Shipbrokers said exports appear to be resuming . Data from Kpler show crude exports from Saudi Arabia's Mideast Gulf port of Ras Tanura jumped in September to 3.6mn b/d from less than 1mn b/d in August, in response to the East-West pipeline outage and ongoing threats by Yemen-based Houthi militants to shipping in the Red Sea. Aramco has been inviting refiners in Asia-Pacific to bid for cargoes loading via ship-to-ship (STS) transfers in the Gulf of Oman, or for cargoes on a delivered basis, in September, October and November. It is unclear if the resumption of exports from Yanbu will necessarily shift supply back towards the Red Sea, especially given the continued risk for Saudi shipping through the Bab el-Mandeb. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Turkey adopts ETS pilot phase rules

01/10/26

Turkey adopts ETS pilot phase rules

London, 1 October (Argus) — Turkey has adopted rules and procedures for the functioning of the pilot phase of its emissions trading system (ETS), which will be implemented in 2026-27. While obligated companies will only be subject to monitoring, reporting and verification (MRV) in 2026, the first compliance obligation will only arise for 2027 emissions, with the deadline for surrendering allowances equivalent to verified emissions set to be the last working day of November 2028. Free allocation will be set at 100pc for 2027, and the rules also confirm that banks and other financial institutions will not be allowed to participate in the pilot phase. Offsetting through carbon credits may only be allowed if specifically approved by the Carbon Market Board (CMB), according to the rules. This came as a surprise to market participants, as authorities have in the past indicated there will be no offsetting during the pilot phase. Allowances issued during the pilot can only be used for pilot obligations, and not be carried to the final phase. Any unmet pilot phase obligations will be carried forward into obligations under the first full implementation period. Benchmark values — which will determine free allocations for each category — will be set differently for power and non-power sectors. Power benchmarks will be calculated using five-year weighted-average emissions intensity — 2023-27 for the pilot phase. Benchmarks will be determined separately for each power plant, through a CMB decision. Industrial benchmarks, on the other hand, will rely on current-year sector-wide emission intensities. The directorate for climate change under the ministry will establish and publish benchmarks for each sub-installation for industrial firms. Benchmarks will be published through the national allocation plan, after verification reports are submitted. Obligated firms in the pilot phase must submit initial monitoring methodology plans by the end of October, according to the recently adopted ETS implementing act. The deadline to submit verified data for 2026 emissions is set on 30 April 2027 and for 2027 emissions on 30 April 2028. Power generators must submit historical emissions intensity data for 2023-25 by 30 June. The pilot phase is limited to five sectors which are also subject to the EU's carbon border adjustment mechanism (CBAM) — namely, electricity, cement, iron and steel, aluminium and fertilisers. Installations emitting 50,000t of CO2 equivalent or above must participate. The CMB can amend the pilot phase's scope, duration or implementation rules, according to the adopted text. It also confirmed that Turkey's first formal ETS compliance period will run during 2028-35, split into the 2028-30 and 2031-35 sub-periods. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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