OAKLAND, CA — Chevron and Royal Dutch Shell reduced their greenhouse gas emissions last year, though those cuts were mainly from lower production and facility shutdowns.
Both companies released their latest sustainability reports this month, covering GHG emissions, energy efficiency, renewable energy and more.
One of Shell's main strategies is to increase its focus on natural gas, which is says will account for more than half of its energy output in 2012. Natural gas plants cost less than coal plants to build and can emit 50-70 percent fewer emissions than coal plants, depending on how old the plants are.
Shell's direct GHG emissions in 2009 totaled 67 million tonnes of Carbon dioxide equivalent (CO2e), an 11 percent drop from 2008.
The company explains in its 2009 Sustainability Report that the lower level is mainly due to reduced activity at refineries and chemical plants, and forced production shutdowns in Nigeria, where violence and oil theft caused Shell to suspend some production while it repairs damage. In the future, though, emissions may rise as other projects are completed and starts producing.
Energy efficiency projects were a lesser cause of emissions reduction as some efficiency gains were balanced out by emissions increases elsewhere. Shell's upstream business increased its energy efficiency, which was offset by the increased energy it needed to use when working in ageing fields and getting to harder-to-reach resources. The company also increased efficiency at its Canadian oil sands operations, but those too were offset by its trucks using more diesel to cover longer distances between mining areas and the processing plant than in 2008.
While efficiency at chemical plants improves, efficiency at refineries declined because lower demand for products caused refineries to work below their full production capacity.
Another one of Shell's strategies is to further its work with carbon capture and storage (CCS), and now is involved with CCS projects in Norway, Australia and Canada.
Chevron's 2009 Corporate Responsibility Report also touches on CCS, primarily on the company's Gorgon natural gas project off the northwest coast of Australia. Chevron sanctioned the project last year and says that once it's operations, it will capture and store up to 3.4 million metric tons of CO2 a year.
Chevron's emissions also dropped from 2008 to 2009, falling 3.6 percent to 57.4 million tonnes, performing better than the company's goal of 60.5 million tonnes. Chevron attributed the drop to reduced flaring, production shutdowns in Nigeria similar to those Shell faced, production decreased in its U.S. mid-continent and Alaska operations, and reduced demand and some shutdowns in California.
Some of Chevron's decreases were offset by increased production in Kazakhstan and the Gulf of Mexico.
*GreenBiz.com
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Emissions
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