Building a Future Proof Oil and Gas Company
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The fossil fuel industry has come under increasing pressure to mitigate emissions, lower production costs and produce more energy in the face of growing global demand and disruption caused by Russia’s invasion of Ukraine.
It is uncertain exactly how oil companies will be able to meet these, at times, conflicting aims. Some oil companies are diversifying into renewable energies. Others are betting that hydrogen will be the fuel of the future. Still others are exploring new technologies for batteries and lower emissions motor fuels.
While the path is still unclear, one thing that is for sure is that the oil industry will look different by 2050.
What does it take to future proof your business for the low carbon future? Executives from three oil producers weighed in at our Decarbonizing Oil and Gas event held earlier this year in Houston.
Here’s what they had to say:
Jason Piggot, CEO, Laredo Petroleum
"When we think about future proofing it, we think about drilling our wells with the lowest carbon footprint that we can. We went out with our inaugural ESG report with goals of reducing emissions 33% from 2019 levels. We’ve eliminated flaring for all practical purposes already. We are trying to get our methane below the 0.2%, which we are well on our way to doing already. We’re in really good shape and we’re just trying to be the most efficient, low-cost producer with the least amounts of emissions.”
Paul Ulrich, Vice President-Government and Regulatory Affairs at Jonah Energy LLC
“When I look at future-proofing, I look at what’s next beyond emissions. For those of us in the Rockies – and probably everywhere – we need to look at our impact on wildlife. Are we tracking and measuring reclaiming surface disturbance in a responsible manner. Is the surface disturbance productive for wildlife? […] Clearly we’re focused on emissions today but looking out five to ten or fifteen years […] [we need to look] at all those other environmental resources as well because they are coming and we will be held accountable for them.”
Lisa Epifani, General Manager, ESG, Chevron
« When I think about future proofing, I think about the long-term value proposition that Chevron can offer. There has been a shift in thinking over time in there’s much more emphasis on the low carbon area. The areas that Chevron has really put forward as why we believe we’re a company that can bring long term value is around financial strength, our improved performance plan, and transparency.”
Interested in learning more about this topic?
Leading oil and gas companies are preparing for changes to the rules on methane emissions. If you want to future proof your business by reducing methane emissions in your operations, join us at the National Summit on Methane Mitigation, taking place at the Norris Conference Centre, Houston on December 6-8, 2022. Download the agenda for more information.
