Despite growing awareness of climate change, the exploitation of fossil fuels remains one of the largest contributors to environmental pollution. While a complete transition away from oil and gas is not yet feasible, proven technologies already exist to reduce their ecological impact drastically. But these innovations often remain underutilised—ignored by many, even as forward-thinking companies harness sustainability as a powerful competitive edge.
In a world still largely powered by fossil fuels, the idea of doing away with oil and gas in the short or even medium term remains a long way off, despite the impressive innovations in the renewable energy sector. According to the International Energy Agency (IEA), demand for oil rose by 0.8% in 2024, while gas demand rose by 2.7% over the previous decade. This reality underscores the urgency not only of investing in renewable energy but also of making existing fossil fuel operations cleaner and more sustainable.
The oil and gas industry is responsible for a significant share of global greenhouse gas emissions, both through direct operations and the downstream burning of its products. In 2019, for example, fossil fuels accounted for 74 percent of U.S. greenhouse gas emissions. However, despite a growing toolbox of technical solutions capable of drastically reducing environmental impact, these solutions are unevenly adopted across the sector. The challenge lies not in a lack of technology but in the uneven enforcement of regulation, varying levels of corporate commitment, and economic disincentives for early adoption. As pressure mounts from both regulators, environmentally conscious investors, and public opinion, companies are being forced to adapt—but not all are moving at the same pace.
The Legacy of Global Pollution
One of the clearest illustrations of the industry's environmental shortcomings can be seen in how oil and gas companies handle the decommissioning of old wells. A Reuters 2020 investigation into oil well abandonment in the U.S. found that millions of wells—many drilled decades ago—have never been properly sealed. These wells continue to emit methane and pose risks to water quality and local ecosystems. "As drillers abandoned the wells, they fell into disrepair. Oil or gas was no longer moving into the marketplace. Now, methane gas leaks into the environment, seeping into the air and water," said Derek Strohl, supervisory geologist with the Bureau of Land Management's (BLM) Northeastern States District Office. This issue led the Biden administration to set up the Orphaned Wells Program Office and set aside $4.7 billion for the cleanup of abandoned oil and gas wells.
Despite the Trump administration's efforts to reduce government spending, some experts argue that crucial environmental issues are being overlooked. One such issue is the management of orphaned wells, which continue to pose significant risks to both the environment and public safety. A Trump-era Interior Department spokesperson acknowledged: "Orphaned wells negatively impact current and future oil and gas development activities and pose significant risk to national energy security and public safety." In reality, there exists a widespread and long-term environmental liability that remains insufficiently addressed. In spite of this, the Trump administration has slowed Biden-era efforts to plug these wells.
Some companies are struggling with even basic compliance with extensive environmental regulations today (in spite of the deregulatory efforts of the second Trump administration). Diversified Energy, for example, has come under fire from Democrats in Congress for failing to decommission its wells properly and "over unsustainable amounts of methane pollution and reports that the company may be severely underestimating the costs of plugging and cleaning up its wells."
But others are setting a higher bar. Norway's Equinor, for instance, has committed to reducing the carbon intensity of its oil and gas production and is investing in offshore platform electrification to meet these goals. Electrification allows platforms to operate using renewable power sources rather than gas turbines: "Electrification significantly reduces emissions and also enhances our competitiveness by saving CO2 costs and extending the lifespan of producing fields. This enables us to sustain high energy deliveries with lower emissions from the Norwegian continental shelf (NCS), which is crucial for Europe's energy security," the company stated.
Yet these cases remain exceptions rather than the norm. Many smaller producers lack the capital to implement large-scale mitigation technologies, while some major players have focused their efforts more on public relations than on measurable impact. According to the IEA, around 75% of methane emissions from oil and gas operations can be reduced through high operational standards, policy action, and technology deployment—and half of those reductions can be achieved at no net cost. This highlights a glaring discrepancy between what is technologically feasible and what is being done.
Green Innovation
Some firms are trying. Expert Petroleum (XP), for example, is a rising player in lower-impact hydrocarbons production. The French company is investing in a suite of environmentally focused innovations, notably when it comes to the revitalisation of mature oil and gas fields, such as in Romania and Ukraine. The company is aiming to make the oil and gas industry more sustainable at every level, according to CEO David Martinon.
XP's efforts reflect a broader industry trend: those who take environmental performance seriously are increasingly framing it as a business opportunity rather than a regulatory burden. "Creating a genuine market for the responsible and rational use of resources will drive greater responsibility in the oil and gas sector, with clear economic benefits as well. XP's long-standing and successful experience, particularly in countries like Romania—where oil production has a long history—reinforces our confidence in this sustainable approach. We must remain committed and ensure the entire industry shifts toward a more responsible and sustainable future," explains Managing Director of XP Upgreen, Bart Wauterickx.
Meanwhile, other companies continue to lag behind, despite mounting evidence that inaction carries long-term financial and reputational risks. Governments and regulatory bodies have begun to take more decisive steps. The European Union, for example, is rolling out stricter methane emission reporting rules by 2026. In the United States, the Environmental Protection Agency (EPA) has been ramping up efforts to monitor emissions from both active and abandoned wells (although the Trump administration's energy policy could upend this approach). These policy shifts are expected to increase pressure on companies that have thus far managed to avoid scrutiny.
Still, significant gaps remain. Voluntary commitments are often riddled with loopholes, and enforcement remains inconsistent across jurisdictions. Moreover, a lack of global standardisation on emissions accounting makes it difficult to compare company performance reliably.
As the sector faces increasing demands for transparency, performance, and accountability, companies—provided they follow through on their promises—could serve as important examples for how the industry might evolve. But systemic change will require more than just a few standout performers. It will demand coordinated policy frameworks, financial incentives for early adopters, and a public willing to hold companies accountable.
The decarbonisation of oil and gas operations is not an impossible challenge. It is, however, an urgent and complex one. With technology already in place to mitigate many of the sector's most harmful effects, the real question is whether the will exists to use it. Until then, the world remains caught between the pressing need to combat climate change and the enduring realities of its energy dependence.
