{"id":49968,"date":"2024-02-26T10:45:20","date_gmt":"2024-02-26T10:45:20","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=49968"},"modified":"2024-04-03T11:26:17","modified_gmt":"2024-04-03T10:26:17","slug":"clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/","title":{"rendered":"Clean, cheap or fair &#8211; which countries should pump the last oil and gas?"},"content":{"rendered":"<p><strong>The <a href=\"https:\/\/www.climatechangenews.com\/2023\/12\/15\/we-have-to-fix-unfairness-ten-takeaways-from-cop28\/\">Cop28<\/a> UN climate summit in December secured agreement from almost 200 nations to \u201ctransition away from fossil fuels in energy systems in a just, orderly and equitable manner\u201d &#8211; a decision hailed by world leaders as \u201chistoric\u201d.<br \/>\n<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">But, while lots of countries are trying to reduce their use of planet-heating fossil fuels, only a handful have so far taken measures to produce less &#8211; particularly when it comes to oil and gas.<strong><br \/>\n<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last year, a United Nations <\/span><a href=\"https:\/\/productiongap.org\/\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> found that governments plan to produce more than double the amount of fossil fuels in 2030 than they should if global warming is to be limited to 1.5C. So they need to cut back.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The International Energy Agency (IEA) says no more new fossil fuel production projects are required, yet we will still need fossil fuels for the next few decades to keep economies running. That raises the question of who should get to drill, pump and sell those last supplies &#8211; and why?<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/09\/indonesia-nickel-industry-expansion-threatens-indigenous-peoples-rights\/\" target=\"_blank\" rel=\"noopener\"><strong>Indonesia turns<\/strong> traditional Indigenous land into nickel industrial zone<\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Climate Home looked at three key criteria for the production of oil and gas. Unlike the other dirtiest fossil fuel &#8211; coal &#8211; they tend to be located together and so are produced in the same regions by the same nations. And the <a href=\"https:\/\/iea.blob.core.windows.net\/assets\/86ede39e-4436-42d7-ba2a-edf61467e070\/WorldEnergyOutlook2023.pdf\" target=\"_blank\" rel=\"noopener\">IEA predicts<\/a> that their use will outlive that of coal.<br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve looked at whose oil and gas is the cleanest, whose is the cheapest, and whose economy could most handle losing out on oil and gas revenue. Depending on the metric, the results differ wildly.<\/span><\/p>\n<p>The cleanest oil and gas comes from Norway and the Arabian Gulf, the cheapest is in the Gulf. But when global economic justice is considered, the fairest is in smaller nations in the developing world &#8211; the likes of Libya, Trinidad and Tobago, and Turkmenistan.<\/p>\n<h3>Cleanest production?<\/h3>\n<p><span style=\"font-weight: 400;\">Given the world will be using oil and gas for some time to come, shouldn\u2019t we use that which causes the least damage to the planet?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While all oil and all gas is equally damaging to burn as fuel, the process of pumping it up from the ground can be more or less harmful to the climate.<\/span><\/p>\n<p><a href=\"https:\/\/foreignpolicy.com\/2018\/09\/19\/norways-green-delusions-oil-gas-drilling\/\"><span style=\"font-weight: 400;\">Norway<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.zawya.com\/en\/business\/energy\/uae-produces-cleanest-oil-barrel-in-the-world-top-official-iud6frea\"><span style=\"font-weight: 400;\">the United Arab Emirates<\/span><\/a><span style=\"font-weight: 400;\"> make this argument, arguing their oil and gas is the cleanest &#8211; and a <\/span><span style=\"font-weight: 400;\">November 2023 <\/span><a href=\"https:\/\/www.iea.org\/reports\/the-oil-and-gas-industry-in-net-zero-transitions\"><span style=\"font-weight: 400;\">report <\/span><\/a><span style=\"font-weight: 400;\">by the IEA backs them up.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/9j5de-norway-has-the-cleanest-oil-and-gas\/\" rel=\"attachment wp-att-49996\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13115331\/9j5de-norway-has-the-cleanest-oil-and-gas-e1707825232461.png\" alt=\"\" width=\"800\" height=\"1131\" class=\"alignnone size-full wp-image-49996\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">It found that Norway\u2019s oil and its gas were the cleanest in the world to produce, measured by emissions intensity, while supplies from the UAE and other Gulf nations like Saudi Arabia and Qatar were also among the least damaging.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Norway\u2019s oil and gas are cleaner because it has <\/span><a href=\"https:\/\/www.spglobal.com\/esg\/insights\/featured\/special-editorial\/greenhouse-gas-intensity-of-the-north-sea\"><span style=\"font-weight: 400;\">strict rules<\/span><\/a><span style=\"font-weight: 400;\"> in place, requiring oil and gas producers to capture any methane gas that leaks during the production process. This prevents it from reaching the atmosphere and making climate change worse.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On top of this, much of the machinery used to produce the oil and gas doesn\u2019t run on fossil fuels itself but on clean electricity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A handful of Gulf states &#8211; including Saudi Arabia, Qatar, Kuwait and the UAE &#8211; have lower-intensity operations in part because of their \u201c<\/span><a href=\"https:\/\/www.spglobal.com\/commodityinsights\/en\/market-insights\/latest-news\/oil\/110920-middle-east-is-a-mixed-bag-as-investors-weigh-oils-role-in-climate-change\"><span style=\"font-weight: 400;\">easy to access\u201d<\/span><\/a><span style=\"font-weight: 400;\"> reserves.<\/span><span style=\"font-weight: 400;\"> As the oil is nearer the surface, less energy-guzzling machinery is needed to pump it up.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But <\/span><span style=\"font-weight: 400;\"> the emissions from producing the oil and gas need to be put in perspective. It is the use of those fuels that has the biggest consequences. Just <\/span><a href=\"https:\/\/www.woodmac.com\/press-releases\/few-oil-and-gas-companies-commit-to-scope-3-net-zero-emissions-as-significant-challenges-remain\/\"><span style=\"font-weight: 400;\">5-20%<\/span><\/a><span style=\"font-weight: 400;\"> of oil and gas companies&#8217; total emissions are from production, according to energy consultancy Wood Mackenzie.<\/span><\/p>\n<h3>Cheapest energy?<\/h3>\n<p><span style=\"font-weight: 400;\">Or should we use the cheapest oil and gas? The cheaper those fuels are to produce, the cheaper it should be to use our power plants, polyester and petrol. Those savings should be passed onto consumers around the world when they fill up their vehicles or switch on their lights.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This was an argument deployed by Amin Nasser, the head of oil giant Saudi Aramco<\/span><span style=\"font-weight: 400;\">, who <\/span><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Saudi-Arabia-Wants-To-Pump-Every-Last-Molecule-Of-Oil.html\"><span style=\"font-weight: 400;\">told reporters<\/span><\/a><span style=\"font-weight: 400;\"> at Davos in 2019: \u201c<\/span><span style=\"font-weight: 400;\">There will continue to be growth in oil demand \u2026 We are the lowest-cost producer and the last barrel will come from the region.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gulf nations like Saudi Arabia again score well on this. As their oil and gas is near the surface, it\u2019s cheaper to pump.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the IEA\u2019s \u201clow cost\u201d scenario, in 2040, Qatar, Saudi Arabia, Iraq and Iran increase their oil and gas production the most. More expensive producers like Canada, Australia and China have to cut down how much they pump.<\/span><\/p>\n<p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/oxvr6-middle-eastern-countries-increase-oil-production-in-a-low-cost-transition-scenario-1\/\" rel=\"attachment wp-att-49997\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13115524\/Oxvr6-middle-eastern-countries-increase-oil-production-in-a-low-cost-transition-scenario-1-e1707825330215.png\" alt=\"\" width=\"800\" height=\"615\" class=\"alignnone size-full wp-image-49997\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/wza9e-middle-eastern-countries-increase-gas-production-in-a-low-cost-transition-scenario\/\" rel=\"attachment wp-att-49998\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13115550\/wzA9E-middle-eastern-countries-increase-gas-production-in-a-low-cost-transition-scenario-e1707825358283.png\" alt=\"\" width=\"800\" height=\"615\" class=\"alignnone size-full wp-image-49998\" \/><\/a><\/p>\n<h3>Fairness and capacity?<\/h3>\n<p><span style=\"font-weight: 400;\">Or should the governments that cut back on oil and gas output first be the historically large emitters that can most afford to go without the money they get from selling fossil fuels?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s an argument made by many African nations. Ahead of Cop28, African negotiators unsuccessfully proposed a ban on developed countries exploring for fossil fuels \u201cwell ahead of 2030, whilst affording developing countries the opportunity to close the global supply gap in the short term\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Climate Analytics analyst Neil Grant argues we must take \u201ccapacity to transition\u201d into account when thinking about who should be the last producers. A Carbon Tracker <\/span><a href=\"https:\/\/carbontracker.org\/reports\/petrostates-of-decline\/\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> found at least 28 oil and gas-reliant economies would lose half of their expected revenues under just a \u201cmoderate-paced transition\u201d &#8211; so there is a lot at stake.<\/span><\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/09\/us-trade-agency-backs-oil-and-gas-drilling-in-bahrain-despite-biden-pledge\/\" target=\"_blank\" rel=\"noopener\"><strong>US trade agency<\/strong> backs oil and gas drilling in Bahrain despite Biden pledge<\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Greg Muttitt, from the International Institute of Sustainable Development, told Climate Home that if the transition is left to market forces, \u201ca lot of people\u201d in oil and gas-dependent economies will \u201cget hurt\u201d, either by losing their jobs, or experiencing a breakdown in public services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At Cop28, a network of civil society groups published a <\/span><a href=\"https:\/\/www.equityreview.org\/extraction-equity-2023\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> assessing which countries should be the last to extract fossil fuels, accounting for both economic dependence, and climate equity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using a measure of financial \u201ccapacity\u201d, defined as surplus income above \u201cwhat is required to meet people\u2019s needs\u201d, the report found that Libya, Iraq and South Sudan should be among the last countries extracting oil, while Algeria, Trinidad and Tobago, and Turkmenistan are among the last extracting gas. The likes of Norway, Canada and Qatar should stop first for both, it concluded.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-49994 size-full\" src=\"https:\/\/www.climatechangenews.com\/files\/2024\/02\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2.png\" alt=\"Which countries should end the pumping of oil and gas?\" width=\"1688\" height=\"1288\" srcset=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114931\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2.png 1688w, https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114931\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2-220x168.png 220w, https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114931\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2-442x337.png 442w, https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114931\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2-768x586.png 768w, https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114931\/3tJtk-libya-iraq-and-south-sudan-are-among-the-last-countries-phasing-out-oil-from-a-climate-equity-perspective-2-1536x1172.png 1536w\" sizes=\"(max-width: 1688px) 100vw, 1688px\" \/><\/p>\n<p><a href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/osoff-algeria-trinidad-and-tobago-and-turkmenistan-are-among-the-last-countries-phasing-out-gas-from-a-climate-equity-perspective-2\/\" rel=\"attachment wp-att-49995\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.climatechangenews.com\/files\/2024\/02\/13114956\/osOFf-algeria-trinidad-and-tobago-and-turkmenistan-are-among-the-last-countries-phasing-out-gas-from-a-climate-equity-perspective-2-e1707825007534.png\" alt=\"\" width=\"800\" height=\"610\" class=\"alignnone size-full wp-image-49995\" \/><\/a><\/p>\n<p>Whichever answer you chose, M<span style=\"font-weight: 400;\">ichael Lazarus, co-author of the UN report and U.S. director for the Stockholm Environment Institute, told Climate Home he was pleased that \u201cwe have finally gotten to the point in the global conversation where folks are asking the question\u2026of what that ultimate transition looks like.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"The world will need oil and gas for a few decades more &#8211; and the debate is heating up over who should get to produce and sell it","protected":false},"author":191,"featured_media":46896,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[598,1483,3859],"tags":[],"coauthors":[5141],"class_list":["post-49968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fossil-fuels","category-un-climate-talks","category-world","type-analysis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which countries should end the pumping of oil and gas?<\/title>\n<meta name=\"description\" content=\"The world will need oil and gas for a few more decades as it transitions - so which countries should be the last ones to produce fossil fuels?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which countries should end the pumping of oil and gas?\" \/>\n<meta property=\"og:description\" content=\"The world will need oil and gas for a few more decades as it transitions - so which countries should be the last ones to produce fossil fuels?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/\" \/>\n<meta property=\"og:site_name\" content=\"Climate Home News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ClimateHomeNews\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-26T10:45:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-03T10:26:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn.climatechangenews.com\/files\/2022\/07\/29170704\/Inglewood-oil-field.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"797\" \/>\n\t<meta property=\"og:image:height\" content=\"452\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Polly Bindman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ClimateHome\" \/>\n<meta name=\"twitter:site\" content=\"@ClimateHome\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Polly Bindman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.climatechangenews.com\/2024\/02\/26\/clean-cheap-or-fair-which-countries-should-pump-the-last-oil-and-gas\/\"},\"author\":{\"name\":\"Polly Bindman\",\"@id\":\"https:\/\/www.climatechangenews.com\/#\/schema\/person\/a13736eff9d602d578df61b3506b845d\"},\"headline\":\"Clean, cheap or fair &#8211; 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