What are Scope 3 emissions and why do they matter for oil?
Quick Answer
Scope 3 emissions are indirect emissions from a company's value chain—for oil companies, primarily the burning of sold products by consumers. These account for about 85% of oil industry emissions. Critics argue oil companies should be responsible for these; industry counters that consumers make the choice to burn the fuel. This debate shapes climate litigation and corporate accountability discussions.
Key Numbers
Full Analysis
In-depth exploration with citations and evidence
The Three Scopes Explained#
Greenhouse gas accounting divides emissions into three categories:
Scope 1: Direct Emissions
Emissions from sources a company owns or controls:
- Flaring and venting
- Refinery operations
- Company vehicles
Scope 2: Indirect Energy Emissions
Emissions from purchased energy:
- Electricity for operations
- Heating/cooling
Scope 3: Value Chain Emissions
All other indirect emissions:
- Upstream: Drilling services, materials, employee travel
- Downstream: Product transportation, end-use combustion
Why Scope 3 Dominates for Oil#
For a typical oil company :
- Scope 1: ~10% of total emissions
- Scope 2: ~5% of total emissions
- Scope 3: ~85% of total emissions
This massive Scope 3 share comes from one activity: consumers burning the company's products in cars, trucks, planes, ships, and heating systems.
The Accountability Debate#
The Case for Oil Company Responsibility
- Companies profit from products they know cause emissions
- Industry marketing promotes consumption
- Historical knowledge of climate risks
The Case Against
- Consumers make purchasing decisions
- Governments regulate and tax fuels
- Modern life requires oil with no alternatives
- Double-counting if consumers also report
Implications for Net Zero Claims#
When oil companies claim "net zero" commitments, the devil is in the details:
- Operations only: Covers Scopes 1 and 2 (~15% of emissions)
- Full value chain: Includes Scope 3—requires actual product reduction
Most industry commitments focus on operational emissions, not Scope 3.
Steelmanned Counterarguments
We present the strongest version of opposing viewpoints—not strawmen.
1Oil companies can't be responsible for consumer choices.
Critics argue that oil companies design and market products knowing they will be burned, similar to tobacco. However, unlike tobacco, oil products are legal necessities for modern life with no immediate alternatives available to many consumers.