carbon-neutral crude oil

Every day, midstream companies in North America transport massive volumes of crude oil, natural gas, NGLs, and refined products to market. Without their pipelines, economic activity would rapidly grind to a halt. Still, environmental critics and ESG-conscious investors and lenders are quick to point out that the commodities that midstreamers pipe are among the leading sources of greenhouse gas emissions, and that, at the very least, pipeline companies should be reducing or even offsetting the carbon dioxide (CO2) and other GHGs associated with operating their networks. That’s now happening in a big way — and in a variety of ways — as we discuss in today’s blog.

Carbon-neutral hydrocarbons may sound like an oxymoron, but an increasing number of international shippers have been assembling and sending out cargoes of LNG whose expected lifecycle carbon-dioxide (CO2) emissions have been fully offset by carbon credits. What’s next? No-calorie cherry pie? No-loss gambling on DraftKings? A winning season for the Houston Texans? (Probably not.) As you’d expect, carbon-neutral cargoes of LNG — and crude oil and LPG — are designed to help hydrocarbon sellers and buyers alike meet their goals for reducing their greenhouse gas emissions (GHGs). The concept is still relatively new, though, and many of the participants in these deals are still in learning mode, seeking to gain experience with something they expect to see a lot more of soon. In today’s blog, we discuss the relatively short history of this type of shipment and the first signs that carbon-neutral hydrocarbons are about to go mainstream.