Oil and gas tops in greenhouse gas mitigation spending

Bill Bush | 202.682.8069| bushw@api.org

Washington, DC – A new report issued today shows the U.S. oil and natural gas industry invested about $42 billion in greenhouse gas emission mitigation technologies from 2000 to 2006.  This represents 45 percent of an estimated $94 billion spent on these technologies by all U.S. industries and the federal government. 

“For years, oil and gas companies have been involved in virtually every alternative energy and emission mitigation technology while also producing significant energy efficiency improvements in their own operations,” said API President and CEO Red Cavaney. “This report puts a number on the extent of our contribution and shows we’re serious.”

Key Investments in Greenhouse Gas Mitigation Technologies by Energy Firms, Other Industry and the Federal Government, commissioned by API, was conducted by T2 & Associates and the Center for Energy Economics at The University of Texas at Austin.

The report says that other industries, including auto companies and the agribusiness sector, spent about $37 billion in these technologies during the 2000 to 2006 period while the federal government invested another $15 billion.

Out of the oil and gas industry’s $42 billion total, it invested about $28 billion for advanced end-use technologies, mostly for efficiency improvements through combined heat and power (cogeneration) and for advanced vehicle technology.  Another $10.5 billion went to developing less carbon-intensive fuels and to reduce methane fugitive emissions and flaring.  The industry also invested $3.4 billion in non-hydrocarbon technologies, such as wind, biomass, solar and geothermal. 

Overall, the five leading categories for all investment from all industry and government sources were alternative fueled and advanced technology for vehicles (22 percent or $21 billion); efficiency improvements (18 percent or $17 billion); combined heat and power (14 percent or $13 billion); liquefied natural gas (12 percent of $11 billion); and fugitive gas emission reductions (11 percent or $10 billion).

Data sources for the report included over 300 company annual reports, federal budget documents, and other publicly available information. For examples of specific investments by individual companies, view: Climate Challenge: A Progress Report and Companies Address Climate Change on API’s website.