2050 BAU scenario 78 kg CO2e/boe 2050 net- zero scenario 8 kg CO2e/boe1020305060 40100kg CO2e/boe708090 BAU Net zero2022 2030 20503987 87 2040178280 0Readiness Emission intensity trajectory for the oil and gas sector FIGURE 65 Source: Accenture analysis based on IEA NZE and STEPS Scenario.533 The oil and gas industry has advanced significantly in technology, particularly in methane capture and zero- flaring techniques, which are now fully developed (TRL 10). Meanwhile, electrification and energy efficiency measures are still in the demonstration phase and serve as important decarbonization levers. By 2050, the sector will need approximately 0.7 EJ of hydrogen, as per the IEA NZE scenario.534 Currently, green premiums are relatively low, with natural gas at 7% and oil at 10%.535 Policies are required to scale up the deployment of clean energy technologies and boost the deployment of CCUS. The industry requires over $600 billion in annual investments by 2030, primarily directed towards electrification, CCUS and low-emission hydrogen initiatives.536 Overall, forecasts indicate a 74% decline in oil demand and a 78% drop in gas demand will be required by 2050 to meet the IEA NZE scenario.537 To achieve net-zero emissions by 2050, the oil and gas sector must focus on five key levers: addressing methane emissions, eliminating non- emergency flaring, electrifying upstream facilities with low-emission electricity, integrating CCUS and expanding the use of low-emission hydrogen in refineries. Reducing methane emissions is the most critical step for lowering overall emissions by 2030 given that it is a short-lived climate pollutant (SLCP), followed by improvements in electrification and efficiency. In net-zero scenarios, scaling up CCUS and adopting low-emission fuels for shipping will also play a significant role. Net-Zero Industry Tracker: 2024 Edition 122

Net Zero Industry Tracker 2024