Posted on March 22nd, 2021
Posted in Newsletter Volume 1 Tags: ESG, Upstream
Without a doubt environmental implications are the hot button issue in the oil and gas industry. Driven largely by public sentiment and the investment community, the post COVID-19 world has high-graded the urgency in which carbon producers are looking at the sustainability and implications of their business. Whether you’re a super-major dramatically shifting your business model, or a smaller operator aiming to a set the environmental benchmark in your basin, there are concrete steps that make a significant impact.
A recent article by McKinsey & Company highlighted the need for operators to account for “carbon price” in their break even calculations. Advantaged oil now combines both lower break even prices and lower carbon intensity. With upstream operators accounting for nearly two-thirds of sector specific emissions, in an industry contributing a significant portion of overall emissions, there is plenty of room to work towards lower carbon intensity.
This is exactly what we at Halker Consulting and Halker Smart Solutions (HSS) are seeing in the market. Major Permian operators now have initiatives to reduce the two major sources of carbon; flaring and fugitive emissions, and operators have set out on initiatives to be “best in class” as it relates to carbon emissions in their basin. With digital flare mitigation projects in the works, smart multi-phase measurement eliminating fugitive emissions from separation equipment and pneumatic systems, and world-class engineers continually improving facility design and operations, Halker Consulting and HSS are your partners in developing environmental initiatives.
Sources: The big choices for oil and gas in navigating the energy transition