Global demand for energy continues to increase, alongside energy transition pressure. With a rising global demand for sustainable and affordable energy, operators in the oil and gas industry are looking for strategies to balance or reduce the greenhouse gas (GHG) emissions footprint from their operations. As a large global emitter, the oil and gas industry is expected to contribute to GHG emission reductions to meet the goals set by the 2015 Paris Agreement.

Energy transition is often misunderstood. Throughout history, transitions have occurred due to technological developments, or scarcity of existing resources. Today’s energy transition factors in environmental concerns and the need to mitigate climate change. However, transition is not about a hard-stop on existing energy sources, but rather a collaborative approach to lowering the carbon footprint of existing supply in conjunction with the development of new low-carbon solutions.

The energy industry will be part of the solution. Minimizing and managing emissions from oil and gas production is not only becoming a regulatory requirement, but also a benchmark for stakeholders to evaluate and grant social license. By taking a proactive approach to emissions management and going beyond the minimum regulatory requirements, energy companies can differentiate themselves to Environmental, Social, and Governance (ESG) conscious stakeholders, profit from reduced leakage, as well as benefit from premiums for certified low-carbon products.

Voluntary Initiatives are an essential part of the solution. Early in 2021, our team at Highwood Emissions Management (Highwood) observed a rapidly growing ecosystem of voluntary initiatives available to the energy industry. Our clients expressed increasing confusion as they attempted to navigate a new and expanding network of programs, asking questions like “Which one is best?” and “What is the benefit to my organization?”.

Our first report in 2021 broke new ground. It brought structure and guidance to the rapidly emerging voluntary initiatives landscape. We identified 20 distinct voluntary initiatives and categorized them as certifications, guidelines, commitments, or ESG ratings. We also introduced disclosure levels and offered recommendations for how organizations could approach and adopt voluntary initiatives. These definitions and classifications are rapidly becoming standardized terms in the emissions management space.

We followed with our 2022 report, expanding our coverage to 24 voluntary initiatives available to the  energy industry, including 8 new initiatives. The second edition leveraged questionnaires to collect detailed information from administering organizations. Using this data, we expanded the scope to include the entire supply chain, allowing participation for gathering, boosting, processing, transmission, and LNG operations. We also introduced a series of feature articles to help operators evaluate their voluntary options, with topics such as The Role of Measurement, Selecting the Right Initiative for You, Leaders in Differentiated Gas, and more.

This 2023 third edition updates existing and new programs, totalling 24 voluntary initiatives now available to the energy industry across the supply chain. New developments are highlighted as well as trends towards the use of shared methodologies and protocols among initiatives and regulatory bodies.