A division of Occidental Petroleum, Oxy Low Carbon Ventures (OLCV), delivered the world’s first shipment of carbon-neutral oil to India, the energy industry’s first major petroleum shipment for which greenhouse gas (GHG) emissions associated with the entire crude lifecycle have been offset.
Specifically, Occidental stated that the delivery of two million barrels of carbon-neutral oil was made to Reliance Industries.
The company explains that the transaction represents the energy industry’s first major petroleum shipment for which greenhouse gas (GHG) emissions associated with the entire crude lifecycle have been offset.
The company added that the transaction marked the first step in the creation of a new market for climate-differentiated crude oil. Also, the company commented that the transaction links the development of a further differentiated petroleum product, net-zero oil – which the company intends to produce through the capture and sequestration of atmospheric CO2 via industrial-scale direct air capture facilities and geological sequestration.
This type of transaction, which involves the bundling of high-quality carbon offsets with crude oil, is an immediate executable solution that helps promote investments in longer-term, industrial-scale decarbonization strategies.
Moreover, it is stated that the volume of the offsets applied against the cargo are sufficient to cover the expected GHG emissions from the entire crude lifecycle including oil extraction, transport, storage, shipping, refining, subsequent use, and combustion.
Richard Jackson, president of Oxy Low Carbon Ventures, commented that
We are taking important initial steps to work with our customers in hard-to-decarbonize industries to offer carbon-neutral and other low-carbon products that will leverage our expertise in carbon management to lower their total carbon impact and address Scope 3 emissions.
Concluding, recently, Occidental Petroleum claimed that it was doing more than U.S. electric vehicle and clean energy company Tesla to reduce greenhouse gas emissions.