Climate-wise choices in a world of oil abundance
Constrained oil supply has given way to abundance at a time when strong action on climate change is wavering. Recent innovation has pushed US oil production to all-time heights and driven oil prices lower. At the same time, attention to climate policy is wavering due to geopolitical upheaval. Nevertheless, climate-wise choices in the oil sector remain a priority, given oil's large role in modern economies. Here we use a set of open-source models along with a detailed dataset comprising 75 global crude oils (~25% of global production) to estimate the effects of carbon intensity and oil demand on decadal scale oil-sector emissions. We find that oil resources are abundant relative to all projections of 21st century demand, due to large light-tight oil (LTO) and heavy oil/bitumen (HOB) resources. We then investigate the 'barrel forward' emissions from producing, refining, and consuming all products from a barrel of crude. These oil resources have diverse life-cycle-greenhouse gas (LC-GHG) emissions impacts, and median per-barrel emissions for unconventional resources vary significantly. Median HOB life cycle emissions are 1.5 times those of median LTO emissions, exceeding them by 200 kgCO2eq./bbl. We show that reducing oil LC-GHGs is a mitigation opportunity worth 10–50 gigatonnes CO2 eq. cumulatively by 2050. We discuss means to reduce oil sector LC-GHGs. Results point to the need for policymakers to address both oil supply and oil demand when considering options to reduce LC-GHGs.