Posted on April 20th, 2021
Posted in Uncategorized
The Oil & Gas Industry continues to evolve and ESG plans are becoming an essential document for every owner. It is those ESG plans that will be primary drivers for groundbreaking solutions to keep our 160-year-old Industry advancing into the future.
One of the simplest improvements we can make as an industry is to reduce facility footprint, providing ESG and economic benefits that extend beyond the obvious surface area usage. Compact facilities result in faster construction requiring less time and energy to prepare the land. They reduce capital cost of equipment, reducing emissions. Properly planned, smaller facility footprints can reduce land acquisition costs. Most importantly, they can allow us to be better neighbors with a smaller impact on landowners and surrounding habitats and wildlife.
A moderate shift from traditional facility design is the tip-of-the-iceberg for many. Beyond simply reducing facility footprint size and equipment count, there are multiple other advancements to be considered. Focusing on energy efficiency and technology to manage carbon intensity, even viewing wellhead gas as a valuable commodity rather than a cost or biproduct of oil production can lead to enhanced investor returns. Reducing, and even eliminating, routine flaring is economically achievable while still operating a safe facility.
Ultimately, expectations of our industry will increase environmental and societal considerations. With the appropriate investment into engineering and design of new facilities, these considerations are not just boxes to be checked, but will genuinely improve the economics of every project. Targeted and meaningful ESG investments reduce capital expenditures and maintenance costs, improve compliance, better landowner and investor relations, and maximize our Industry’s contributions to our communities.