Illustration: Sarah Grillo/Axios

A group of the world's largest oil-and-gas companies this morning pledged near-term cuts to greenhouse gas emissions from their operations.

Why it matters: It's the latest step by energy giants — including Exxon and state-owned behemoths like China's CNPC — to address climate change. Activists say, however, the industry as a whole is moving far too slowly compared to the scope of the problem, especially outside of Europe.

How it works: The 12-member Oil and Gas Climate Initiative's target is to cut emissions intensity from exploration and production operations by 2025.

  • The target is 20-21 kilograms of CO2-equivalent per barrel of crude oil equivalent, down from a "collective baseline" of 23 kilograms in 2017.
  • The goal encompasses emissions of CO2 and the potent greenhouse gas methane.

The intrigue: "Intensity" means emissions per unit of output, as opposed to promising absolute reductions.

But OGCI said that if production levels remain constant, the pledge amounts to absolute emissions cuts equivalent to the energy use of 4-6 million homes.

What they're saying: “I don’t think it’s a small achievement to bring all these companies together — national oil companies, who have their own pressures, European and U.S. companies have different government and shareholder pressures on them — actually work together, particularly during the pandemic," Bob Dudley, the group's chairman and former BP CEO, tells Bloomberg.

Meanwhile, the Environmental Defense Fund's Mark Brownstein, who carefully tracks industry methane emissions, offers a mix of praise and criticism here.

Go deeper

Shale's struggles will persist despite a rise in oil prices

Illustration: Sarah Grillo/Axios

WTI, the benchmark U.S. oil future, traded Wednesday morning at its highest since early March — highlighting how the worst of shale's crisis is seemingly over, though more bankruptcies likely lie ahead.

Why it matters: Its price at the time — $43 — is still too low for many producers to do well, though it varies from company to company.

U.S. oil production saw biggest decline since 1980 in May

Data: EIA; Chart: Axios Visuals

U.S. oil production's nearly 2 million barrel per day decline in May was the steepest monthly drop since at least 1980, the federal Energy Information Administration said in a short report.

Why it matters: The agency's monthly production data, which is more robust than weekly snapshots but arrives with a lag, starkly shows the toll the pandemic took on U.S. output after the price collapse caused a major pullback. Some of the lost output has recently returned as prices improved, but production is expected to remain depressed.

Ford-owned scooter company Spin makes "carbon negative" pledge

Illustration: Sarah Grillo/Axios

Spin, the Ford-owned electric scooter company, said Wednesday that it will find a way to cut more carbon emissions than it creates by 2025.

Why it matters: It's a fairly quick time frame, which means lots of tangible stuff needs to happen soon. It also comes as "micro-mobility" services are emerging as a wildcard in urban carbon emissions.