US E&P firms lack robust carbon reduction plans

Dallas Fed finds just one-third of E&P companies in the region plan to cut carbon emissions over the next five years, with oil and gas capex set to rise

Pressure is ramping up on oil and gas companies across the globe to reduce their carbon emissions, as countries pledge to become net-zero by 2050. But while many firms are committing to decarbonise their operations, others are failing to implement robust plans. This is despite the sector being directly or indirectly responsible for about 42pc of all global carbon emissions, according to estimates by consultancy firm McKinsey. Just a third of E&P oil and gas companies located or headquartered in Texas, southern New Mexico or northern Louisiana plan to cut greenhouse gas (GHG) emissions over the next five years, according to the Federal Reserve Bank of Dallas’ Q4 2020 survey of firms. The