NOCs' efforts in reducing upstream emissions are crucial for Latin America

NOCs in the region represent more than 60% of the region’s hydrocarbon production, and their related emissions account for 80% of total upstream emissions. Their role and measures in decarbonizing their own operations are crucial to lead the region in achieving lower emission targets. A main structural issue to address is the high level of flaring in countries like Mexico and Venezuela, a combined estimate for both countries at more than 1 bcfd during 2023. In contrast to the challenges of legacy assets, the region shows a positive emissions performance in their deepwater projects. Not are only these projects key contributors to NPV increases, but also display an average emission intensity of 17 tCO2 e/kboe (2024), while the global average is 20. CO2 injection is also an important component in the decarbonizing advantage of deepwater resources. According to the Brazilian NOC, Petrobras, they have already injected more than 53 million tons of CO2 in its deepwater reservoirs.