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New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
How to use circular economy indicators in the oil and gas industry
13/8/2025
10 min read
Feature
Incorporating circular economy principles enables the oil and gas sector to better align with broader sustainability goals, long-term viability, resilience and responsible resource management. As the industry evolves, measuring circularity can act as a compass, guiding decision-making and investments, promoting innovation and driving tangible actions that contribute to increased sustainability and circularity. Part of the new second edition of guidance published by the Energy Institute, which includes a worked case study from SLB, is reproduced below.
Measurement is integral to the successful implementation of circular economy principles. It provides insights into a company’s baseline, tracking progress, identifying areas for improvement and demonstrating the value of (increasing) circular practices. Accurate measurements enable organisations to quantify material efficiency, design for reuse or repurposing, waste reduction and materials repurposing; fostering transparency and accountability.
Effective reporting can demonstrate the environmental and economic benefits derived from circular initiatives, enhancing stakeholder engagement and investor confidence. Furthermore, industry standards for measurement and reporting help peers identify best practices, driving continuous innovation and optimisation. There are currently no global standards for circular economy measurement specific to the oil and gas industry.
A potential approach to move towards further circularity in the oil and gas sector is to apply a mix of qualitative and quantitative indicators in line with what fits each individual company best. The EI guidance includes tables of qualitative and quantitative indicators and suggestions on how to operationalise them. The qualitative indicators act as an important starting point to create a circular economy governance. Circular economy is closely connected to other environmental and social matters, which should be considered when being implemented by oil and gas companies. Quantitative indicators are important for steering and making data driven decisions.