ESG Dynamics was delighted to sponsor the Environment, Social and Governance (ESG) session at the Society of Petroleum Engineer’s A&D Symposium on March 2, 2022.
The panel discussion revealed how the oil and gas sector can leverage data and benchmarks to identify ESG risks and strategic opportunities. Panelists:
- Jason Modglin, President, Texas Alliance of Energy Producers
- Emily Funk, ESG Manager, Evolution Well Services
- Ted Wurfel, Vice President of ESG, Rockcliff Energy
ESG is not going away and it’s not just about metrics. Equity owners now send more frequent and detailed questionnaires on these issues. A simple annual summary no longer suffices. Owners and lenders want to know a company’s ESG goals and risks, looking for quarterly improvement over time.
Investors have led the ESG pressure, but lenders and customers are also pushing companies to reduce negative impacts. Some companies embrace ESG as a strategic opportunity to serve their stakeholders.
- Evolution Well Services provides the tools for its customers to meet ESG targets. Its electric pressure pumping equipment reduces emissions, noise and wellsite footprint of hydraulic fracturing operations. Supply chain has become critical than ever, because customers care about the actions of suppliers.
- Rockcliff Energy found an opportunity to meet customers’ desire for cleaner energy by providing responsibly-sourced gas. Applying high standards – like full-time emissions monitoring and eliminating leaks – reduces methane intensity of operations while generating revenue, putting captured gas to beneficial use.
Implementing ESG programs provides social benefits too. Engaging with and investing in local communities drives more positive relationships with a company, especially through the ups and downs inherent to the energy industry. These programs attract younger employees, voters and customers, who tend to be more interested in ESG issues.
Successful ESG programs start with a vision and mission at the highest levels of an organization. Oil companies can start by benchmarking themselves against competitors or refer to reporting frameworks. Ultimately, leaders from across the company need to come together to set ESG goals specific to that business, then measure and reevaluate progress toward those targets.
Need help getting started with an ESG initiative or benchmarking against competitors? Searching for techniques to improve your operations toward your ESG goals? Preparing to sell assets or evaluating environmental metrics of an acquisition target? ESG Dynamics provides the data and guidance you need at every stage of your journey in the oil and gas industry.