Can the Oil and Gas Industry Really Be Part of the Net Zero Agenda?

Written by: Energy Guardians

Last Updated: June 8, 2025

At first glance, the idea that the oil and gas industry, one of the largest contributors to global greenhouse gas emissions, could play a role in the transition to net zero feels like a contradiction, if not an outright deception. And for good reason.

For decades, this sector has profited from the very fuels driving climate breakdown, while many of its leaders have sown doubt about climate science, lobbied against clean energy policies, and greenwashed their image with slick PR campaigns. But as the climate crisis intensifies, the question becomes unavoidable: 'Can the oil and gas industry actually be part of the net zero solution?'

Let us unpack the complexity with clear-eyed honesty.

What is 'Technically' Possible?

Despite their reputations, oil and gas companies do possess financial resources, engineering expertise, and global infrastructure that in theory, could be redirected toward a lower-carbon future. Here is how:

1. Methane Emissions Reduction

Methane, which leaks from oil and gas operations, is over 80 times more potent than CO₂ over a 20-year period. Cutting these leaks with satellite monitoring and rapid repairs could deliver major short-term climate gains.

2. Carbon Capture and Storage (CCUS)

Capturing carbon from fossil fuel operations and storing it underground is being pitched as a silver bullet. While the technology exists, it is expensive, energy-intensive, and largely unproven at scale.

3. Investment in Clean Energy

Some companies, particularly in Europe, are expanding into renewables like offshore wind, green hydrogen, and biofuels. It is a small shift, but a real one, driven more by risk management than climate leadership.

4. Electrifying Oil Operations

Using renewables to power rigs and facilities can reduce operational emissions (Scope 1 and 2). It does not solve the bigger problem of fossil fuel combustion (Scope 3), but it is a start.

5. Repurposing Infrastructure

Aging oil platforms can be converted into offshore wind hubs or marine sanctuaries, turning environmental liabilities into climate assets.

What is 'Actually' Happening?

While the technologies and pathways exist, the reality on the ground tells a different story:

• European majors like BP, TotalEnergies, and Shell have made net zero pledges, but are still investing heavily in oil and gas.

• U.S. giants like ExxonMobil and Chevron are doubling down on fossil fuels while pushing carbon capture as a lifeline.

• Offsetting schemes are being used as accounting tricks, often with dubious impact and poor oversight.

• Most companies are scaling back renewables investments since oil profits surged in 2022.

The net result? A lot of climate talk, very little climate action.

What is Deeply Problematic

The industry's approach to net zero is fraught with contradictions:

Greenwashing

Oil companies invest heavily in branding themselves as climate champions while actively expanding fossil production. Many of their “net zero” claims rely on unreliable offsets and vague targets.

Lobbying Against Climate Action

Behind closed doors, the industry still spends billions lobbying against climate policies, EV mandates, and renewable energy subsidies, undermining the very goals they claim to support.

New Fossil Fuel Projects

The International Energy Agency (IEA) has made it clear: no new oil and gas fields are compatible with a 1.5°C pathway. Yet exploration continues apace.

Lock-In Risk

Infrastructure built today will last decades. Continued fossil fuel development locks in emissions, making net zero targets virtually unreachable.

So, Can They Really Be Part of Net Zero?

The short answer? Not at their current trajectory.

For the oil and gas industry to be genuinely aligned with net zero, it must:

• Phase down fossil fuel production in line with science-based pathways,

• Massively invest in clean energy, not just as a PR exercise but as a core business strategy,

• And support, not sabotage, strong climate policies.

Until then, their participation in the net zero agenda will remain more of a strategic repositioning than a systemic transformation. Without bold policy, public pressure, and accountability, the industry's role in a liveable climate future is more obstacle than opportunity.

The Bottom Line

We cannot afford magical thinking.

Yes, the oil and gas industry has a role to play. But only if it accepts the fundamental truth: its dominance must end for the planet to thrive.

The question is no longer whether this industry can be part of the transition.

It is whether it is ready to be part of the solution or must be forced into it.