Emission Intensities of Large Companies

Larger oil companies tend to have lower emissions intensities per barrel of oil produced due to several factors that result from their scale, operational capabilities, and strategic approaches to environmental management.

• Advanced Technologies and Infrastructure: Larger oil companies have greater financial resources and operational capabilities, allowing them to invest in advanced technologies and infrastructure. They can afford to adopt state-of-the-art equipment, implement advanced drilling techniques, and deploy comprehensive emissions monitoring systems. These technologies help optimize their operations, reduce energy waste, and minimize emissions, resulting in lower emissions intensities per barrel of oil produced.
  
• Economies of Scale: The size and scale of larger oil companies provide them with economies of scale. They can spread the costs of emission reduction technologies and environmental initiatives across a larger production volume. This makes it more cost-effective for them to implement and maintain sustainable practices, reducing their emissions intensities.
  
• Research and Development (R&D): Larger oil companies typically have robust R&D departments and greater resources for innovation. They invest in research initiatives to develop and implement cutting-edge technologies that mitigate emissions throughout the production process. These innovations may include carbon capture and storage (CCS) technologies, improved refining techniques, and more efficient extraction methods. By continuously advancing their technologies, larger companies can achieve lower emissions intensities.
  
• Regulatory Compliance and Stakeholder Pressure: Larger oil companies face more stringent regulatory oversight and increased pressure from stakeholders, including governments, environmental organizations, and the public. These pressures incentivize them to adopt environmentally responsible practices. To comply with regulations and meet stakeholder expectations, larger companies proactively invest in emission reduction strategies, sustainable technologies, and transparent reporting systems, leading to lower emissions intensities.

Overall, the combination of advanced technologies, economies of scale, research and development efforts, diversified energy resources, and regulatory compliance/stakeholder pressure enables larger oil companies to achieve lower emissions intensities per barrel of oil produced. By strategically managing their operations and investing in sustainability, these companies demonstrate a commitment to reducing their environmental impact.

Sources:
https://www.sustainability.com/thinking/benchmarking-methane-ghg-emissions-oil-natural-gas-us/?utm_source=substack&utm_medium=email#Top100