Oxy Low Carbon Ventures, a division of Occidental Petroleum, concluded the delivery of the world’s first carbon-neutral oil shipment, to Reliance Industries, in India.
The US-based company announced it last week; delivery was for around two million barrels of oil to which all the associated carbonic emissions had been offset.
Firstly, the transaction is an initial step for the creation of a new market for crude oil, pressured from the climate change agenda. Secondly, it is a bridge to the development of a new product, net-zero oil.
Although Occidental Petroleum has more than 40 years of experience with CO2 sequestration, it is now when the company intends to produce it at scale, through capture and sequestration facilities.
Macquire, the investment group, arranged the sale; subsequently, “it is an example of Macquarie’s commitment to innovation in the environmental products space and to being a leader in energy transition.”
According to the statement, Occidental produced the oil shipped, in the Permian Basin area in the U.S. Then, Macquire arranged and structured the bundled offset supply.
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In addition, offsets were sourced from various projects; also, they were verified under the Verra Verified Carbon Standard, a criterion set by UN’s CORSIA organization.
Subsequently, the volume of such offsets applied to the cargo were enough to cover the entire crude’s lifecycle; initially, from its extraction, transport, storage; also its shipping, refining, subsequent use and combustion.
Finally transaction is expected to set a floor for further oil investments for long-term; also, as a means to establish industrial-scale decarbonization strategies. “It is also a step in the furtherance of Occidental’s net-zero ambitions; also, of its commitment to addressing climate change today,” the company says.
“Firstly, we are taking important initial steps to work with our customers in hard-to-decarbonize industries;” said Richard Jackson, president of Oxy Low Carbon Ventures.
“Secondly, we offer carbon-neutral and other low-carbon products that will leverage our expertise in carbon management; in conclusion we want to lower their total carbon impact and address Scope 3 emissions,” he concluded.