What role can the oil and gas industry play in the energy transition, what is the Oil and Gas Climate Initiative exactly, and how is Equinor contributing? One of the people working hands-on with this issue is Bjørn Otto Sverdrup.
"A good day at work? That has to be when we see the results of creating agreement, how we're actually able to substantially reduce the emissions – by more than 100 million tonnes."
The oil and gas industry's own operations account for nearly 10 per cent of the world's greenhouse gas emissions. Equinor's share of this is small, which is why the company is also engaged in improving the entire industry. The emissions are a major challenge, but they also represent a unique opportunity: The potential for emission cuts in this sector is considerable, and such cuts can play a big role for the global energy transition. However, realising these cuts will require extensive cooperation across national borders and companies. This is where the Oil and Gas Climate Initiative (OGCI) plays a crucial role – and Equinor is taking centre stage.
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Walking the talk
The OGCI was established in 2014 and currently consists of twelve of the world's largest oil and gas companies, including Equinor, Shell, BP, Exxon, Chevron, Saudi Aramco, TotalEnergies and Petrobras, in addition to China's national oil company. It is led by the companies' CEOs.
This is a rare and noteworthy cooperation because the companies – normally competitors – are joining forces to solve a global problem: How to reduce emissions more quickly, and at a greater scale. The main priority for this cooperation is to reduce production emissions – meaning the greenhouse gases emitted when the companies themselves use energy to produce oil and gas.
"We call them production emissions, and they make up nearly 10 per cent of the world's overall greenhouse gas emissions. This is equivalent to double the emissions from all the world's aircraft and boats," explains Bjørn Otto Sverdrup, chair of the OGCI Executive Committee.
The Kristiansund native has extensive experience from Equinor, including as Executive vice-president for sustainability, and is now on loan from the company to lead the OGCI. His role involves getting the largest oil companies to work together to cut emissions faster and more effectively.
The results speak for themselves: since 2017, OGCI companies have reduced their own production emissions by more than 120 million tonnes of CO2 – more than the combined emissions of Norway, Sweden and Denmark. Methane emissions and flaring have been cut in half in seven years, and the companies have invested more than USD 100 billion in low-carbon solutions.
Bjørn Otto Sverdrup has a political science degree from the University of Oslo (UiO), previously led the secretariat for the 22 July Commission, held several management positions in Equinor and currently serves as Chair of the OGCI.
Photo: Andreas Kleiberg
Potential in cooperation
These aren't just big numbers – they also represent concrete, measurable actions. The OGCI sets joint goals, shares solutions, reports its progress openly, and uses advanced technology to detect and eliminate emissions. This includes satellite technology and drones to find hidden leaks.
Equinor plays a key role, both through its core involvement in the Initiative, and by sharing experience from Norway, where production emissions are already very low. In Norway, Equinor has virtually eliminated methane leaks and flaring and has electrified or is in the process of electrifying many of its largest installations using renewable energy from hydro and wind power.
"The potential for considerable climate measures in the global oil and gas industry is enormous – and at this point, we know a lot about how this is done," Bjørn Otto emphasises.
"The oil and gas industry can't eliminate all emissions on its own, but it can do more than most."
One important measure is to include more companies worldwide, through a new shared commitment introduced at the COP28 climate summit in Dubai in 2023. So far, 56 companies operating in more than 100 countries have joined forces to cut methane and flaring, and to bring emissions down to net zero – a major global industry mobilisation.
This new climate collaboration is truly global, spanning North, South, East and West, with the aim of sharing experiences, setting joint goals and reporting progress. The OGCI was one of the architects behind the initiative, and Bjørn Otto is responsible for leading it in its first few years.
In practice, participants include all of the world's major oil and gas companies, with the majority being national oil companies in countries such as India, Indonesia, Argentina, Nigeria, Angola and the Emirate of Abu Dhabi. The potential for emission cuts in this group is greater than in most other international climate collaborations.
"Most of the work lies ahead of us, but we've made a good start," says Bjørn Otto.
Not pointing fingers
Despite the scale of the challenges and emissions – and the resistance some measures face – Bjørn Otto believes cooperation through the OGCI justifies a degree of optimism. The companies' CEOs meet regularly, take a long-term view and understand climate change as a fundamental challenge. They are therefore working purposefully on solutions to cut emissions over time.
"Technology is the key to solving the climate challenges, because it makes greater emission reductions possible – and makes them financially viable. Through the OGCI, we see how advanced technology leads to large-scale, tangible emission cuts. This isn't science fiction; these are measurable results," Bjørn Otto explains.
One important aspect to acknowledge is that different companies are at different stages in their energy transition and face varying expectations in their countries. This why it is crucial to tailor support and measures – and above all, to work together.
"Regardless of where a company is at in its transition, it's important for them to be on this journey with us. Every improvement counts. This isn't about pointing fingers, but about cooperating and sharing our experiences," says Bjørn Otto.
With its extensive emissions, the oil and gas industry also has an extraordinary opportunity to make a positive contribution in the fight against climate change. The OGCI and Equinor show that this is not merely a matter of hope or belief – but of concrete action and real results.
To truly succeed in the global energy transition, the oil and gas industry must be on board – all the way to the finish line, and across the world.
In his role as an "emissions diplomat", Bjørn Otto meets people from a wide range of cultures and backgrounds. "I've learned that if you're going to lead people in the same direction, it's vital to know them, to listen, to understand, and to build cooperation.” Photo: Andreas Kleiberg
What is the Oil and Gas Climate Initiative?
What is the OGCI?
A joint effort by some of the world's largest oil and gas companies to cut greenhouse gas emissions.
Established in 2014 by 12 global energy companies, including BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Petrobras, Repsol, Saudi Aramco, Shell and TotalEnergies.
Represents about 30% of the world's oil and gas production – giving it substantial potential for emission cuts.
What does the OGCI do?
Focuses on reducing production emissions, particularly methane and CO₂ from oil and gas production.
Has reduced CO2 emissions by more than 120 million tonnes since 2017 – equivalent to the combined national emissions of Sweden, Denmark and Norway.
Uses advanced technology, including satellites, drones and sensors, to find and eliminate emissions worldwide.
Operates a global partnership across national borders and companies, sharing best practices and joint goals. Recently established a broader group: the Oil and Gas Decarbonisation Charter.
Equinor's role
Founding member and leading participant in the OGCI since its inception.
Bjørn Otto Sverdrup, formerly an Equinor Executive vice-president, currently chairs the OGCI Executive Committee.
Norway is highlighted as a role model, with low production emissions, electrification and strict environmental standards.
Navigating the energy transition
An energy system has taken more than a century to build, now has to be transformed in just 20 – 30 years. Henriette is optimistic.
In 2022, we presented our first energy transition plan. It outlines the projects and measures that, in the short and medium term, support our net-zero ambition for 2050. The plan is ambitious, but Hilde Røed, Director of Climate and Sustainability at Equinor, is convinced that it is achievable. We just need to pick up the pace.
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