Emissions reduction targets and performance

GHG emissions 

Performance 

In 2023, our total gross operated GHG emissions were approximately 17.4 million tonnes, a 9% increase compared to 2022. Changes between 2022 and 2023 include: 

• Data improvements for methane emissions: 
  • Corrected pneumatic equipment counts and classifications.
  • Expanded flare downtime monitoring in the Bakken and Permian.
• Activity increases in Lower 48 and Canada.  

These increases were partially offset by disposition of our Indonesia asset and decreased activity in Alaska, Norway and Australia.

Target progress 

In April 2023, we strengthened our target to 50-60% reduction by 2030 from a 2016 baseline. The target covers Scope 1 and Scope 2 gross operated and net equity emissions. Our Scope 1 and Scope 2 GHG emissions and emissions intensity calculations directly measure our performance and help us understand climate-related risk. Lower intensity assets are more resilient to policy, legal, technology and market risk.  

The company has already progressed toward meeting this target over the past several years. Between 2016 and 2023, we achieved a 36% intensity reduction on a target-related, gross operated basis through a combination of specific emissions reduction projects and portfolio changes. From 2024 to 2030, continued capital allocation actions are expected to have a combined impact of lowering GHG emissions intensity by roughly 14-24% as we increase production from assets with low intensity, such as those in the Permian Basin, and achieve reductions from near-term projects. Our progress to date has not included the use of voluntary offsets. 

The target includes emissions that are related to production and excludes emissions from our aviation and polar tankers fleets. This may give rise to small differences between the intensity we report for our GHG target purposes and the intensity we report for our annual metrics. Since 2019, this difference has been less than 2%, or 1 kg CO₂e/BOE.   

Net equity and non-operated emissions 

In addition to progress against our operational GHG emissions intensity target, we are also working toward reducing our net equity GHG emissions intensity. Our target-related net equity emissions were 9% higher in 2023 compared to 2022, at 19.8 million tonnes CO₂e. This corresponds to a target-related net equity intensity of 29.7 kg CO₂e/BOE. About 42% of our net-equity emissions are from non-operated assets.  

Because we approach our company's net-zero ambition as a shared challenge, we look to influence our joint operating partners’ climate risk strategies and GHG targets and align our emissions reduction activity. We engage with our major operating partners to align on approaches to managing climate-related risk. This includes discussions with QatarEnergy and its operating company Qatargas for our LNG partnership in Qatar as well as Origin Energy for our APLNG business.  

We also recently initiated an internal Non-Operated Asset Working Group to align on ways of working with non-operated partners, meet our company strategic objectives, and exchange knowledge on best practices and levels of engagement. These opportunities will deepen our understanding of non-operated partners’ operational directions and targets and allow us to engage with partners on specific emissions reduction initiatives and frameworks as a response to regulatory, social and stakeholder pressures. 

Methane  

Performance 

In 2023, estimated methane emissions totaled 3.3 million tonnes of CO₂e and constituted approximately 19% of our total GHG emissions. While methane emissions increased compared to 2022, as of year-end 2023, we have achieved an approximate 50% methane emissions intensity reduction from 2015 with an intensity of 4.8 kg CO₂e/BOE.⁴ 

The increase in estimated emissions between 2022 and 2023 can be attributed to improved data quality. Corrected equipment counts and classifications constitute the majority of this increase, represented in dark blue in the chart to the right. In addition, we are expanding flare downtime monitoring, further improving the accuracy of methane emissions estimation, represented in light blue in the following chart. While these data quality changes ultimately increased the total emissions we report, they also signify our commitment to incorporating the best available information from our assets and the importance of transparency.  

Even with changes to data quality, our methane emissions reduction strategy remains the same:  

• Detect fugitive emissions events early. 

• Evaluate and execute emissions reduction opportunities. 

• Validate emissions measurement through OGMP 2.0. 

• Maintain sound operating practices, including aerial and ground-based surveys for leak detection. 

Leak detection and repair, also known as LDAR, is a work practice used to identify and repair leaking components to reduce GHG emissions, maintain regulatory compliance, and increase efficiency. Our LDAR program includes both regulatory-required efforts and voluntary measures. We continue to voluntarily conduct pilots of emerging technologies at numerous facilities to determine effectiveness and scalability of next-generation detection technologies, while also deploying fixed-sensor technologies and aerial survey methods for identification of emissions events. The primary objective of our monitoring program is to expeditiously identify, investigate and repair leaks associated within our operations.

Target progress 

We have both a near-term and medium-term target⁵ for reducing methane emissions: 

• By 2025: Meet a 10% methane emissions intensity reduction target by 2025 from a 2019 baseline.  
• By 2030: Achieve a near-zero methane emissions intensity by 2030. This near-zero target is defined as 1.5 kg CO₂e/BOE or approximately 0.15% of natural gas produced.  

While the data quality changes discussed in the previous section may potentially impact our 2025 methane intensity target, we continue to monitor progress against the target, and we are maintaining line of sight to our 2030 target. With regulatory reporting changes phasing in over 2024 and 2025, there remains some uncertainty over near-term methane emissions levels. Our path to near-zero methane emissions by 2030 includes:

• Focusing on eliminating pneumatics. 
• Minimizing flare downtime. 
• Managing emissions from thief hatches. 
• Continuing to execute our methane-related MACC projects.

The Oil and Gas Methane Partnership 2.0 

Joining the initiative 

In July 2022, ConocoPhillips joined the Oil and Gas Methane Partnership (OGMP) 2.0 initiative, a voluntary, public-private partnership between the United Nations Environment Programme (UNEP), the European Commission, the Environmental Defense Fund and over 130 oil and gas companies. OGMP 2.0 has emerged as a globally recognized framework for methane emissions measurement and reporting and is aimed at minimizing methane emissions from global oil and gas operations. We are committed to improving the transparency of our methane emissions reporting and delivering on our methane reduction objectives and targets by collaborating with industry peers to accelerate best practices in our operations. Ultimately, reporting through OGMP 2.0 will help us make better informed decisions about where to prioritize our efforts to have the maximum impact on reducing our emissions footprint.  

Creating a U.S. context 

While ConocoPhillips operates in several countries across the globe, it was among the first few companies with a sizable U.S. onshore presence to join OGMP. We actively engaged with UNEP staff and other OGMP 2.0 members to implement the program for a U.S. onshore asset given the characteristics of dispersed operations in our Lower 48 assets. U.S. companies operate thousands of individual wells over large geographic areas, often involving many partners with varying interests, making it challenging to conduct measurement campaigns that span thousands of acres in various locations.    

Approach 

As part of OGMP 2.0, we committed to reporting methane emissions for all material sources from both operated and non-operated assets, according to our reporting boundaries, and we submitted our OGMP 2.0 Implementation Plan in May 2023. At that time, a majority of the emissions from our assets were being reported at Level 3. We then implemented a measurement campaign involving sampling hundreds of sites across Lower 48, Alaska, Canada, Australia and Norway at a mix of facilities, including large, complex sites, batteries/facilities and well pads. Results from these sampled sites were used to inform asset-level totals.  

While our measurement campaign spans global assets, our Lower 48 team is leading the effort since a majority of company methane emissions are from Lower 48 assets, and learnings from these assets can be leveraged for other operating areas. Lower 48 organized an internal, multidisciplinary team with representation from engineering, operations, and environmental functions to carry out the measurement and analysis for a measurement-informed methane inventory. The approach focused on updating equipment inventories, classifying equipment, initiating additional metering to support real-time data, and conducting Quantitative Optical Gas Imaging surveys. To complete a Level 5 inventory, OGMP 2.0 requires the measurement of source-level emissions (“bottom-up”) as well as site level emissions (“top-down”).   

First, we conducted a “bottom-up” source-level equipment inventory to complement the existing inventories of sources at the selected sites. This was followed by source-level emissions measurements using targeted methods for specific source types or the bottom-up Level 4 measurements. Next, we conducted flyovers at the selected sites to determine “top-down” measurements. We then extrapolated emissions from both bottom-up and top-down measurements to the asset level. We are in the process of initiating Level 5 reporting where we will compare and reconcile both bottom-up and top-down basin inventories.  

Results and impacts to reported data 

Our results to date are generally consistent with other published studies and included findings such as: 

• Most of our emissions come from a small percentage of sources, with a few high-emission events accounting for a large portion of the inventory.  

• Emissions from sources like pneumatic devices were smaller compared to regulatory-based estimates.  

• The difference between top-down emissions and bottom-up emissions was dependent on basin; neither measurement type yielded consistently higher emissions across basins.  

• In basins where the top-down emissions were higher, it was often a result of higher emissions from episodic events.    

Given ongoing developments in measurement technologies, we expect our measurement-informed estimates will continue to evolve as we incorporate those technologies into our approach. We do not consider that the measurement technologies will yield exact representations; we use our results to evaluate mitigation approaches rather than determine precise quantifications. As we approach Level 5 reporting, we anticipate that measurement technologies will continue to improve, so we continue to monitor, pilot and test a range of measurement technologies across our assets. 

A desired outcome of OGMP 2.0 is that in the future, measurement-based information can be incorporated into regulatory-required methane emissions reporting. While emissions inventories required by the EPA and other regulators today are based on equipment count and production, we expect this to show more convergence with our measurement-based OGMP 2.0 inventory as EPA and other regulations evolve to allow the incorporation of empirical data beginning in 2025. In the interim, we anticipate our measurement-informed emissions estimates to differ from EPA and other regulatory reported emissions. However, increased emissions estimates from better measurement-informed practices are not likely to impact our ability to achieve our 2030 GHG intensity target given our robust emissions reduction approach and focused monitoring efforts on the most impactful emissions sources. 

Next steps 

After submitting our implementation plan in 2023, we were awarded OGMP 2.0’s Gold Standard Pathway designation in recognition of our multiyear measurement-based reporting plan which goes beyond current regulatory requirements. The plan was also recognized for being detailed, descriptive, transparent, robust and comprehensive per the “Company Highlights” included in the International Methane Emissions Observatory 2023 Report. We will continue to advance methane measurement efforts, including: 

• Focusing on the most impactful and cost-effective reductions, including those reductions informed by OGMP 2.0 measurements. 

• Continuing our measurement program as we expand our source-level and site-level measurements in 2024 and beyond. 

• Piloting new technologies as methane measurement practices improve. 

• Using the latest academic research on calculations related to measurement-based inventories. 

• Continuing to progress to Level 5 reporting across our material assets. 
• Engaging with non-operating partners and OGMP 2.0 members for industry-wide improvement in methane measurement and reporting. 

Flaring

Performance 

Flaring is a safety-related process for the controlled release and burning of natural gas during oil and gas exploration, production and processing operations. Flaring is required to safely dispose of flammable gas released during process upsets or other unplanned events and to safely relieve pressure before performing equipment maintenance. Flaring is also used to control and reduce emissions of volatile organic compounds from oil and condensate storage tanks. 

In 2023, the total volume of flared gas was 21.9 BCF, an increase of 22% from 2022. The increase was a result of updated equipment inventories in both Permian and Bakken, shutdown and maintenance at APLNG facilities in Australia, and plant expansion in Canada.  

Target progress 

ConocoPhillips is committed to the World Bank Zero Routine Flaring by 2030 initiative, a program that aims to create consistency among governments, the oil and gas sector and development institutions to address flaring.⁷ In 2022, we committed to achieving zero routine flaring by the end of 2025, five years in advance of the World Bank goal, and we continue to make strong progress. In 2023, routine flaring decreased more than 90% compared to 2021 when we first began tracking it separately. We achieved this through active well management to shut in wells during capacity constraint events and working closely with third party gas offtake providers to ensure sufficient capacity. Other projects focus on treatment of sour gas, flare capture and de-bottlenecking. Achieving this target is a key near-term action to achieving our World Bank goal as well as our net-zero operational emissions ambition.  

While total flaring emissions make up only about 13% of our total Scope 1 and Scope 2 GHG emissions, the target will drive continued near-term focus on routine flaring reductions across our assets.  

In addition to our near-term routine flaring target, we are exploring the development of a total flaring intensity target for 2030. 

_{4. While 2019 is the formal baseline for our methane emissions intensity target, we also compare performance to 2015 to show longer-term progress. 2015 is an important milestone year for international organizations like the UN-led Oil and Gas Methane Partnership 2.0 that aim to achieve a 45% methane emissions reduction by 2025 from 2015 levels.}

_{5. These targets include emissions that are related to production and exclude emissions from our aviation and polar tankers fleets.}

_{6. FAQ – OGMP 2.0 (ogmpartnership.com)}

_{7. Routine flaring is defined as flaring of associated gas that occurs during the normal production of oil in the absence of sufficient facilities to utilize the gas onsite, dispatch it to a market or reinject it. Flaring for safety reasons, non-routine flaring or flaring gas other than associated gas is not included as part of the World Bank Zero Routine Flaring initiative.}