Oxy Low Carbon Ventures delivered 2 million barrels of “carbon-neutral oil” to Reliance Industries in India. The US company said it was the energy industry’s first major petroleum shipment in which greenhouse gas, or GHG, emissions associated with the entire crude lifecycle, from wellhead to combustion, were offset. Oxy said this is a first step toward the “development of a net-zero oil” or “climate-differentiated crude oil,” which will be produced through the capture and sequestration of atmospheric CO2 via industrial-scale direct air capture facilities and geological sequestration.
Oxy said the volume of offsets applied against the cargo was sufficient to cover the expected GHG emissions from the entire crude lifecycle including oil extraction, transport, storage, shipping, refining, subsequent use, and combustion. These offsets were sourced from a variety of projects verified under the Verra Verified Carbon Standard program, meeting eligibility criteria for the UN’s International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA.
Xpansiv’s CBL Global Emissions Offset, or GEO, contract saw a jump in traded levels over the week.