Globally there is concern on the rising concentration of CO2 as it is one of the six Green House Gases (GHG'S) considered responsible for Global warming. Scientifically concluded, the anthropogenic GHG'S are contributing to Global warming. The resultant effect is ‘Climate change’ which is now perceived to be one of the global risk factors, the business faces. The Quantification & Management of Climate related impacts on business, investments, reduction of risk / liability & pursuit of opportunities, is therefore necessary. Along with risk, Carbon emissions (CO2) as a financial commodity currently represent a rapidly growing international market worth over $10 billion. Therefore, it uniquely positions CO2 to leverage opportunities in the carbon emissions trading as well.

Oil & Gas industry is one of major sources for GHG emissions. The O&G activities involve burning, processing, flaring & transporting fossil fuels which emit CO2. It is therefore, imperative that O&G industry need adopt initiatives in mitigating GHG emissions, monitoring & control. The Carbon Management is the key to mitigating CO2 emission. There is an increasing trend amongst oil companies to adopt Carbon Management practices. The challenges include GHG estimation, to internalize externalities, future allocations, caps, low carbon development abatement technologies & the mitigation measures. Globally new developments include energy, fuel consumption & the emissions taxes. There are National control of emission inventories & the forecast, for national planning purposes.

In this paper, development of GHG inventory (& Prediction), GHG accounting system, GHG information system, climate protection policy, protocols, scientific assessments, sustainability reporting, purported benefits to stakeholders, Industry / business, new regulatory requirements , sustainability & economic development, climate change & carbon management opportunities available to the service providers, have been covered. Other issues associated with Climate change briefed are; Scientific complexity, Government policy, International debate and the Competitive pressure.

Carbon Management is going to be a reality in near future for oil companies and the Global trend is in vogue. It is beneficial to adopt proactive approach to be a Competitive, Effective & Credible Organization and realize first mover benefit besides fostering innovation & technology development and influencing global financial systems.

This paper deals with sharing of experience & addresses ‘tomorrow's actions today’.

Keywords:
investment, emission reduction, reporting, carbon management, Upstream Oil & Gas, Efficiency, inventory, disclosure, verification, quantification
Subjects:
Environment, Climate change
Copyright 2007, Society of Petroleum Engineers
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