Performance The sector currently accounts for 14% of global CO2e emissions. Methane emissions account for nearly half of all GHG emissions from oil and gas operations. Oil and gas industry performance TABLE 18 Performance metric Change (2018-2022) Industry output-3% for oil +8% for gas CO2e emission intensity -3% Total CO2e emissions -4% Despite a temporary decline in oil volume in 2020 due to COVID-19 pandemic restrictions, demand almost recovered to 2018 levels by 2022. As for natural gas, from 2018 to 2021, demand grew steadily, driven by industrial activity and power generation, particularly in Asia. In 2022, the Russia-Ukraine conflict led to a 1% global decline, with Europe seeing a sharper 13% drop due to supply disruptions and price spikes. Despite these challenges, overall demand remained stable across key sectors.530 Absolute CO2e emissions saw a decline of 4%, while CO2e emission intensity saw a reduction of 3%. Which can be attributed to several key factors: 1. Methane reductions: Targeted initiatives (e.g. OCGI Satellite Monitoring Campaign531) aimed at detecting and eliminating methane leaks have decreased the overall GHG emissions of oil and gas operations. 2. Reduced flaring: Efforts to minimize the flaring of excess gas have led to significant reductions in CO2 emissions, particularly from oil production sites.3. Improved operational efficiency: Enhanced practices in extraction and processing have lowered energy consumption, further reducing emissions. 4. Shift to cleaner sources: The industry has increasingly focused on producing lighter oil and natural gas liquids, which have lower emissions intensity compared to heavier alternatives. The Zero Routine Flaring by 2030 Initiative, launched by the World Bank and the UN in 2015, commits governments and companies to ending routine flaring by 2030. There has been some progress since its launch (the amount of gas flared per barrel of oil produced fell by approximately 10% in 2022 from 2021) but the total gas flared globally is still very high.532 Net-Zero Industry Tracker: 2024 Edition 121

Net Zero Industry Tracker 2024