Challenges and opportunities of domestic oil and gas industry under “dual carbon” goal: Based on inspirations from European Union energy transformation

Author of the article:CONG Ran, XU Wei, XING Tong

Author's Workplace：China Petroleum Engineering & Construction Corp., Beijing, 100120, China

Key Words：“Carbon peaking” and “carbon neutrality”goal; Oil and gas industry; Carbon trading; Natural gas; Carbon Capture, Utilisation and Storage CCUS; Hydrogen energy

Abstract：“Carbon peaking” and “carbon neutrality” bring new challenges to the emission reduction of the worlds energy industry. The oil and gas industry is the first to bear the brunt. As a strong advocate of “carbon neutrality”, Europe has been at the forefront of the world energy transformation. In order to discover the development direction of Chinas oil and gas industry under the new circumstances of “carbon peaking” and “carbon neutrality”, this paper studied the challenges faced by European energy companies and the practices of these companies to seize opportunities to deepen reform; and put forward appropriate suggestions for Chinas oil and gas companies, taking into considerations domestic oil and gas industrial situation. For domestic oil and gas companies, it is recommended to actively pursue business transformation, vigorously develop natural gas business, green energy technologies (such as Carbon Capture, Utilisation and Storage or CCUS, and hydrogen) and expand funding channels, introduce green finance, so as to better meet the challenges and seize opportunities of “dual carbon”goal, and achieve high-quality development in all aspects.