At Marathon Oil, we acknowledge the role we play in progressing global climate goals and believe our role requires a strategic and pragmatic commitment to innovative solutions for environmental progress. To support our belief, we recently announced new quantitative greenhouse gas (GHG) emissions reduction goals.
Our medium-term goal to reduce GHG emissions intensity by at least 50% by 2025 vs. 2019 is based on our current operations portfolio and emissions reduction opportunities while remaining committed to returning capital to shareholders and maintaining an industry-leading balance sheet. We believe our goals acknowledge the role we play in our industry’s “dual challenge” of meeting energy demands while also minimizing the environmental impacts of exploration, production and energy use.
In 2020, we added a GHG emissions intensity metric to our executive compensation scorecard with an objective of continuous improvement, and we met that objective by reducing our GHG intensity from 30.8 mt CO2e/MBOE to 22.9 mt CO2e/MBOE. Our 2021 scorecard sets a target of further reducing GHG intensity to 20.4 this year, a metric that is tied to Marathon Oil’s Pay for Performance program for all employees.
One of the ways we will meet our 2021 target is through our recent purchase of soil carbon storage certificates from Grassroots Carbon (formerly Soil Value Exchange). The purchase places MRO amongst the pioneering companies to invest in verified soil carbon storage as an affordable, measurable, scalable climate change solution.
Marathon Oil believes that early stage support for soil carbon sequestration, and specifically Grassroots Carbon, provides a unique opportunity to improve the carbon efficiency of our product, while also improving soil and watershed health, and improving biodiversity through the restoration of our nation’s grazing lands and prairies.
Grassroots Carbon is focused on unlocking the massive carbon storage potential of grazed pasture and rangelands, which cover over one third of the US and represent an important ecosystem. Our purchase of verified agricultural soil carbon storage credits through Grassroots Carbon will directly benefit U.S. ranchers who practice regenerative agricultural techniques that draw down carbon from the atmosphere and restore soil health. Grassroots Carbon uses the BCarbon measurement standard to verify how much carbon has been stored in the soil.
Marathon Oil is proud of our long-standing commitment to environmental progress and to harnessing innovation to lessen our impact to the environment. In addition to the Grassroots Carbon initiative, Marathon Oil has initiated the following projects as initial steps to achieve our GHG emissions reductions goals:
- Conversion of Field Gas Pneumatic Devices – conversion of existing gas-driven pneumatic actuated controllers to non-venting options, permanently reducing methane emissions. Beginning in January 2022, future devices installed on MRO-owned equipment will be non-venting.
- Connection of sites to utility power to reduce reliance on generators and to offer additional flexibility to convert equipment to lower-emitting versions.
- Purchase of Renewable Energy Credits (RECs) to fully offset 2021 Scope 2 emissions created from purchased electricity use.
We believe that the oil and gas industry is instrumental in creating enhanced quality of life and we are confident that our products will continue to make up a significant portion of the energy mix. These reduction goals and specific GHG-reducing activities signify our commitment to provide sustainable energy to the world on a long term basis.
To learn more about our sustainability activities, please visit www.marathonoil.com/sustainability.