Due Diligence
Oil & Gas Environmental Due Diligence
Maximize environmental certainty for oil & gas investments & property transactions
Is your next deal environmentally accretive? De-risk your acquisition or divestiture with our streamlined review process that delivers decision-ready results.
Through advanced automation tools, data analytics capabilities, and a team of seasoned experts, ESG Dynamics has optimized every stage of the due diligence process. This includes rapid data collection, efficient analysis of regulatory filings, and precise risk assessment methodologies.
How is ESG Dynamics reshaping environmental due diligence?
In the fast-paced world of oil and gas acquisitions, environmental due diligence is a critical step to assess risks and maximize regulatory compliance. However, this process has historically been time-consuming and costly. A typical assessment may take several weeks to months, contingent on its depth and breadth. The costs linked to environmental due diligence can also vary significantly, ranging from tens of thousands of dollars for small-scale, low-risk acquisitions to hundreds of thousands or even millions for larger, more intricate evaluations involving high-risk assets.
This reality has often meant that companies had to proceed with acquisitions without a complete understanding of potential environmental liabilities until the post Purchase-and-Sale-Agreement (PSA) execution phase. This limitation deprived them of the chance to negotiate environmental terms within the PSA based on early findings.
Enter ESG Dynamics, a trailblazer in oil and gas environmental solutions, transforming the landscape of due diligence in the energy sector. ESG Dynamics’ innovative approach has streamlined and accelerated this process significantly, reducing both time and costs by an order of magnitude, through leveraging automation, analytics, and deep industry expertise.
Images below serve as several examples of our analytics (click image to enlarge):
For Property Buyers
You owe it to yourself and your stakeholders to identify environmental risks on every deal. Our rapid, low-cost and non-disruptive Environmental Due Diligence process provides the quick due diligence you need and narrows the focus of what onsite Phase 1 ESA field work is required and most important.
For Property Sellers
Don’t wait until a deal is on the table before cleaning up your administrative records and operations. Get ahead of the due diligence by including our Environmental Due Diligence report in your data room. Demonstrate to buyers your environmental commitment and transparency, leading to more marketable and faster transactions.
The typical environmental due diligence process involves evaluating the environmental risks associated with the target assets, such as potential contamination, regulatory violations, and liabilities. Several key steps and factors are involved in conducting environmental due diligence:
Review of Regulatory Filings
A regulatory filings review is conducted to identify issues or red flags associated with the target assets. This includes an in-depth review of filings with regulators at state and federal levels, assessing compliance history, permits, rule violations, spills, air emissions, and well liabilities.
All relevant data is programmatically pre-integrated into our dynamic analytics modules. This means that pertinent data and findings are only a few clicks away. The time spent is reduced from days or weeks to mere minutes or hours.
Historical Data Analysis
Historical data related to the target’s environmental performance and any past incidents are reviewed. This includes environmental performance and compliance trends, data filing consistency, and remediation efforts.
Assessment data is automatically plotted and trended, allowing for metrics to be calculated and compared against industry performance benchmarks. Key focus items are highlighted, transforming raw data into actionable intelligence.
Site Risk Assessment
Based on the findings from the filings, a risk assessment is conducted to evaluate the potential environmental liabilities and risks associated with the acquisition, including recommendations on Site Inspection locations.
Leveraging the actionable intelligence generated, our team uses focused time on assessing sites with higher risk profiles. They then recommend an optimized target list of sites to visit. This translates into a reduced liability profile for the deal and realized due diligence time and cost savings.
Site Visit and Inspection
A thorough site inspection is conducted to assess the current environmental conditions of the target assets. This may involve sampling and testing soil, water, and air quality, evaluating waste management practices, and inspecting infrastructure such as storage tanks and pipelines.
Equipped with smart reports and target site lists, our assessment team prioritizes sites and navigates through site-specific risk profiles during visits, highlighting additional findings and recommendations.
Save up to an order of magnitude in time and costs by conducting due diligence with ESG Dynamics!
Next level due diligence for oil & gas investments with ESG Dynamics
By harnessing technology and expertise, ESG Dynamics empowers oil and gas companies and industry stakeholders to make informed investment decisions with agility and confidence. The reduction in time and costs allows companies to focus on strategic priorities, such as mitigating risks, maximizing compliance, and boosting value from acquisitions, while, where appropriate, having the capability and optionality to conduct assessments pre-PSA.
In the ever-evolving landscape of oil & gas investments, ESG Dynamics stands as a game-changer, enabling companies to navigate environmental challenges seamlessly and unlock new opportunities for growth. Stay tuned as we explore the transformative impact of ESG Dynamics on environmental due diligence in oil & gas acquisitions.