Abstract

Recognizing the need to update the original version of the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions (the Guidelines) to reflect changing practices, IPIECA and API jointly developed their second edition in 2011. First published in 2003, the petroleum industry has recognized the need for GHG accounting and reporting guidance that is focused specifically on its operations for over a decade. The Guidelines continue to promote credible, consistent, and reliable greenhouse gas (GHG) accounting and reporting practices from oil and gas operations.

The new edition holds significantly revised chapters on setting boundaries (including discussion of financial control and clearer reference to Scope 1, 2, and 3 emissions) and the evaluation of industry GHG emissions, including uncertainty. There are also revisions to discussions around reporting emissions over time, de minimis emissions, and normalization. The WRI/WBCSD GHG Protocol was, as with the original edition, carefully considered for consistency. The revised Guidelines have also aimed to achieve consistency with the approaches described in the IPIECA publication Oil and Gas Industry Guidance on Voluntary Sustainability Reporting revised in 2010.

INTRODUCTION

For over a decade the petroleum industry has recognized the need for greenhouse gas (GHG) accounting and reporting guidance that is focused specifically on its operations. The American Petroleum Institute (API) first published the Compendium of Greenhouse Gas Emissions Estimation Methodologies for the Oil and Gas Industry in April 2001, with a third edition released in August 2009 (API 2009) (referred to as the Compendium). The original edition of the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions, (referred to as the Guidelines) was issued in December 2003 to fulfil the need for industry guidance focused specifically on the accounting and reporting of GHG emissions at the facility through to the corporate level. Since the original version of the Guidelines was published, GHG emission reporting has become much more widespread. Mandatory reporting of GHG emissions has increased and for companies that are not required to report emissions, or are required to report only for some of their operations, voluntary corporate reporting has also increased.

The second edition of the Guidelines (IPIECA 2011) was developed to reflect changing practices, and to continue to promote credible, consistent, and reliable GHG accounting and reporting practices. The development of these Guidelines proceeded in recognition of the large number of existing GHG accounting and reporting approaches. The World Resources Institute (WRI)/World Business Council on Sustainable Development (WBCSD) GHG Protocol (WRI/WBCSD 2004), and the International Standards Organisation ISO 14064–1(ISO 2006) standard were carefully considered for the revised Guidelines.

The Guidelines have been developed as a complement to the API Compendium of Emissions Methodologies and the IPIECA Sustainability Reporting Guidance (IPIECA 2010). While the Compendium focuses on GHG emissions estimation methodologies for industry sources (how to calculate emissions), the Guidelines primarily address GHG accounting and reporting for the GHG indicators identified in the Sustainability Guidance. Together, these three publications provide a comprehensive set of guidance for the estimation, accounting and reporting of petroleum industry GHG emissions.

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