With a growing focus on climate change, oil and gas companies are increasingly no longer attracting investments solely based on their ability to generate returns but also how environmentally responsible they are while generating those returns.

“The investor community is ultimately seeing a change in risk profiles of the oil and gas companies they are investing in and a growth opportunity, of course for ‘greener’ forms of energy,” David Linden, head of energy transition at Westwood Global Energy Group, told Hart Energy.

In this exclusive interview, Chris Wright, CEO of Liberty Oilfield Services, shares details from the company’s inaugural ESG report plus the campaign to increase awareness of the benefits of oil and gas that went viral.

In an exclusive interview, Wright told Hart Energy’s Faiza Rizvi that there has been a lot of dialogue around the negative impacts of the oil and gas industry, which are “real and should be acknowledged.” However, he also stressed the need to understand the benefits of the oil and gas industry and how plentiful and affordable energy is absolutely critical across several industries including health care and transportation.

After spending decades focused on production growth, oil and gas companies transitioned to a free cash flow model in recent years to boost their financial performance and now it appears investor demands are changing again.

“Firms representing over $100 trillion of assets under management have signed up for responsible investments, stating they will consider ESG when allocating capital,” said Manuj Nikhanj, president of global energy data analytics and SaaS technology company Enverus.

Even though everyday the number of oil and gas companies publishing sustainability reports grow, ESG targets aren’t new to the industry, according to Christopher Valdez, CEO of PureWest Energy, a private E&P company focused on the production of natural gas in Wyoming.

“Commitment to the community, safety and environmental stewardship—these are core values for PureWest but also shared broadly throughout the industry,” Valdez said.

“I think it’s just something that we need to change the narrative and make sure that message is getting out in the marketplace,” he added.

Aggreko, which set its own net-zero target, helps oil and gas operators achieve sustainability goals by providing power solutions and energy services aimed at improving the efficiency of the operations. Haugan, who serves as sector manager for Aggreko’s North America oil and gas group based in Houston, recently sat down with Hart Energy’s Emily Patsy to discuss what operators can do in the field to boost their ESG scorecard plus how Aggreko can help.

During the interview, Haugan noted the Sustainability Accounting Standards Board (SASB), which publishes specific accounting standards to help companies navigate ESG reporting goals. To align with the industry standards, he said producers could focus their sustainability efforts where they have the greatest impact on the SASB metrics including greenhouse-gas emissions, air quality, water management and biodiversity.

When it comes to ESG, it’s important to remember the golden rule: “Whoever has the gold makes the rules.”

“ESG is part of being a U.S. public company, especially in the energy industry now, so embrace it and get on board,” said Hillary Holmes, partner in the Houston office of Gibson, Dunn & Crutcher LLP who also co-chairs the firm’s capital markets practice group.

Holmes recently sat down with Hart Energy’s Emily Patsy to discuss the ESG movement and what opportunities exist for oil and gas companies, including the emergence of sustainability bonds.

How to get public and private capital back  to the oil patch? This expert share what’s on investors’ minds and how  E&Ps are solving for it.

SPEAKER(S):

Tom Petrie, Chairman, Petrie Partners

Chris Wright was a leader in the 1990s on  tight-rock experiments that transferred to unlocking the Barnett Shale  and now the U.S. is a leading world oil and gas producer again. Here, he  takes us to school on what’s next and provides insight into Liberty OFS  plus Schlumberger’s completions business unit.

SPEAKER(S):

Chris Wright, CEO, Liberty Oilfield Services

Producing reserves at the northern end of the Delaware Basin, this E&P describes its development program and plans.

SPEAKER(S):

Michael Hale, Vice President, Exploration, Novo Oil & Gas LLC

This session was recorded on January 27, 2021.

This operator is focused on maintaining its  production levels with a slimmed-down capex budget and judicious mix of  new wells and DUC well completions.

SPEAKER(S):

Daniel Rohling, Executive Vice President & Chief Operating Officer, Battalion Oil Corporation