Climate change and the hydrocarbon industry
- 31 March 2025
- Posted by: Greg Coleman
- Category: energy transition
Climate change has emerged as one of the most pressing challenges of our time. Central to this debate is the role of the hydrocarbon industry – coal, crude oil and natural gas -in contributing significantly to greenhouse gas (GHG) emissions. However, hydrocarbons are not the sole culprits in this environmental crisis. Other notable contributors include agriculture, deforestation, biodiversity loss, volcanic activity and even global conflicts.
The role of the hydrocarbon industry
Current climate realities
Data from 2024 revealed global average temperatures reached the critical threshold of 1.5°C above pre-industrial levels. In polar regions, particularly the Arctic and Antarctica, temperatures rose significantly beyond 1.5°C, accelerating ice melt and sea-level rise.
Greenland has recently garnered considerable attention, primarily due to the news reports from the U.S. But why is there such a significant focus on Greenland?
Greenland, the world’s largest island, is undergoing profound transformations due to climate change. These changes present both opportunities and challenges, especially concerning natural resources and environmental stability.
The retreat of Greenland’s ice sheet has uncovered previously inaccessible areas rich in valuable minerals and hydrocarbons. Key resources include rare earth elements (REEs), crucial for modern technologies such as smartphones, electric vehicles, and renewable energy systems. Deposits of gold, diamonds and other precious metals have also been identified, offering economic prospects for mining ventures.
Estimates suggest significant untapped oil and gas reserves off Greenland’s coast. The diminishing ice cover facilitates exploration and potential extraction activities.
Conversely, climate change poses severe environmental threats to Greenland. Its ice sheet is experiencing a net loss of approximately 200 gigatons of ice annually, significantly contributing to global sea-level rise. This accelerates coastal erosion and increases flooding risks in low-lying regions worldwide. The net loss is the difference between new ice and lost ice due to warming.
Greenland stands at the intersection of opportunity and challenge. While climate change exposes valuable resources that could drive economic development, it simultaneously threatens environmental integrity and global climate stability.
Consequences of rising temperatures
The repercussions of rising temperatures are already starkly visible, extending beyond Greenland. Record-breaking floods in Italy (2024), unprecedented droughts in Africa (2025) and devastating hurricanes along the US coastline underline shifting climatic patterns.
Satellite images from NASA and ESA in 2024 showed a drastic reduction in Arctic sea ice, directly impacting wildlife and local communities dependent on these ecosystems.
Global commitments and their shortcomings
International agreements, notably COP21 in Paris (2015) and COP28 in Dubai (2024), committed to limiting global temperature rise. Yet, progress remains insufficient.
Governments preoccupied with short-term issues, such as the cost of living, frequently prioritise national interests over collective global climate targets.
Public perception often struggles to connect personal daily choices with global temperature increases.
Moving forward
Addressing these challenges requires systemic changes, including:
- harmonising international regulatory frameworks to ensure consistent standards
- strengthening enforcement mechanisms through robust international oversight
- creating substantial financial incentives for sustainable practices within industries.
While awaiting systemic changes, businesses can proactively take meaningful action by reassessing their energy use and reducing their carbon footprint, benefiting both the climate and their bottom line:
- Implement methane emission reduction programmes, including leak detection and repair (LDAR) systems, to minimise the environmental impact of gas extraction and processing.
- Integrate renewable energy into oil and gas operations, for instance, by powering extraction sites and offshore platforms with solar or wind energy, reducing reliance on diesel generators.
- Adopt green hydrogen technologies to support the decarbonisation of refining processes and industrial applications.
- Invest in carbon capture, utilisation, and storage (CCUS) technologies to significantly reduce emissions from fossil fuel operations.
- Diversify business portfolios towards renewable energy projects to mitigate risks associated with fossil fuel market volatility.
Future Energy Partners can enable oil and gas businesses to navigate this energy transition effectively by providing specialised consulting on methane reduction programmes, CCUS strategies, feasibility analyses for renewable integrations, and project management services tailored to industry-specific challenges.
Next issue preview
Stay tuned for next week’s exploration of methane—a critical yet often overlooked greenhouse gas with substantial implications for climate change.
References
World Meteorological Organization (WMO) on 2024 Temperatures
AP News on Arctic Sea Ice Extent (2024-2025)
Climate.gov on Antarctic Sea Ice 2024
National Snow and Ice Data Center (NSIDC) on Antarctic Melt Season 2024-2025
The Guardian on Sea-level Rise in 2024
Brookings on Greenland’s Natural Resources
TIME on Greenland and Climate Change
NY Post on Greenland’s Strategic Mineral Interests (2025)
Natural Habitat Adventures on Greenland Ice Melt
AP News on Global Weather Patterns and Greenland Ice Melt
EPA on Marathon Oil Emissions Violations (2024)
EPA on Apache Corporation Settlement (2024)
The Guardian on ExxonMobil and Shell Emissions (2025)
DeSmog on ExxonMobil’s Carbon Capture Role
Reuters on Shell’s 2024 Emissions
The Guardian on Shell’s Appeal on Emission Reductions (2024)
Reuters on TotalEnergies’ Emissions and Natural Gas Plans (2025)