Oil and natural gas leading innovation in emissions reduction
Zachary Cikanek | CikanekZ@api.org | 202.682.8114
WASHINGTON, September 22, 2015 ─ A new study shows that private investments by the oil and natural gas sector are the driving force behind major greenhouse gas (GHG) reductions in the United States, a trend that will continue without government intervention, according to API.
“America’s oil and natural gas industry continues to lead all other industries in technology that lowers emissions,” said API President and CEO Jack Gerard during a news conference today. “No other industry’s investment comes close. This study demonstrates how market-driven, private-sector leadership can achieve public policy goals more quickly and more efficiently than government programs and mandates.”
The report, by T2 and Associates, tallies federal and private investments in zero- and low- emissions technologies between 2000 and 2014. It shows that the oil and gas sector invested approximately $90 billion in emissions technologies, compared to the automotive sector at $38.2 billion, electric utilities at $37.1 billion, and agriculture and food processors at $13 billion. Over the same period, the federal government invested $110.3 billion, for a total U.S. investment of $303.1 billion. Oil and natural gas sector investments include technologies to capture emissions, improve efficiency, reuse excess heat, and sequester carbon dioxide.
“The facts are clear,” said Gerard. “By embracing our nation’s energy renaissance, we can lower costs, clean the air, and create more jobs here at home while providing an example to the world.”
Out of $87.6 billion total spending on non-hydrocarbon technologies during the 2000 to 2014 period, the oil and natural gas industry was responsible for $14.8 billion, according to the report. This includes investments in wind, solar, geothermal, and biomass technologies. In total, investments by the U.S. oil and natural gas industry reduced 2014 emissions by the equivalent of 55.5 million metric tons of CO2 compared to the previous year – equal to taking 11.8 million cars off of the road.
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 25 million Americans.