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Tariq Siddiqui's picture
COO, Upstream EP Advisors LLC

Oil & Energy | Business Development | Capital Projects | Offshore Wind -  Proven leader in offshore development and operations, with 25+ years’ expertise in managing business through cycles...

  • Member since 2021
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  • Aug 16, 2021

The industry needs to address questions such as “which emissions are accounted for, what methodology is employed in the emissions measurement and verification, and how the emissions are priced—either through a carbon credit or a carbon tax


  • The terms ‘carbon neutral’, ‘carbon off-set’ or ‘carbon off-set compensation’ indicate that company has engaged in a transaction to ensure that an amount of carbon dioxide equivalent to that associated with the production, delivery and usage of the fuel has been removed from the atmosphere through a nature-based process or emissions saved through avoided deforestation.”


  1. Carbon-offsetting approaches do not always advance net-zero goals and are difficult to calculate
  2. According to experts; Saving forests from deforestation does not equal removing the carbon footprint of an LNG cargo, experts 
  3. While an important tool, offsetting cannot be considered as a substitute for direct emissions reductions by corporates, but as a complement.
  4. There are several issues with nature-based projects to offset emissions.
    1. There isn’t a universal methodology and regulation about calculating the Scope 1, 2, and 3 emissions of an LNG cargo.
    2. There isn’t a universal methodology to calculate if the avoidance of deforestation in an African country would have saved as much emissions as an LNG cargo generates during its entire value chain, from natural gas production to end use.


  1. Transparency and uniformity will help alleviate fears of greenwashing—that cargoes are being marketed as environmentally friendly when they are not, either due to poor carbon credit quality or erroneous GHG measurement and accounting,
David Trahan's picture
David Trahan on Aug 16, 2021

Carbon neutrality is a tough one. A lot of companies (not just oil & gas companies) are buying carbon credits, or are planning to buy credits, to offset their carbon footprint whether from hydrocarbon energy use or from their carbon input into a process or product. There are many products many would not suspect (anything made with carbon-based polymer) has a carbon footprint and therefore they can't avoid the use of carbon in making their product so they buy carbon credits to offset. Some call this greenwashing but isn't that what we want. A slow down in carbon emissions by all means possible. I guess green LNG is possible and shouldn't Shell be afforded the same opportunity to offset emissions as any other company.

Bob Meinetz's picture
Bob Meinetz on Aug 16, 2021

Is carbon-neutral oil really possible? In a word, no.

"Carbon-neutral" (a.k.a. "net-zero", a.k.a. "not-zero") goals would be almost as effective as vacation offsets, where jet-setters are led to believe planting trees can reduce the net carbon emissions their international travel extravaganza will produce to less than the annual ones of a resident of Zimbabwe.

"Would be", because after the revelation Exxon-Mobil has been studiously denying climate change for 40 years, its industry's promises don't even pass muster among the liars at Sierra Club.

Carbon-neutral would be almost as effective as Carbon Capture and Sequestration (CCS), where oil companies pinky-promise they will collect, then tuck all of the CO2 their products emit thousands of feet underground in salt caverns (the Easter Bunny won't handle that responsibility, but the American Petroleum Institute had to draw the line somewhere).

They'll stay in those salt caverns until the end of time, so benign no one will even know they're there. That's the problem.

Given public recognition of the oil industry's lack of proficiency at anything but mendacity, the only thing we can expect to achieve net-zero status is the industry itself. To paraphrase political commentator Grover Norquist: "I don't want to abolish the oil industry. I just want to shrink it down to the size where we can drown it in a bathtub."

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