Energy asset manager Kimmeridge recently issued a report detailing why net-zero should be the standard for the E&P sector. The report was a follow-up to the company’s September 2020 paper, “Charting a Path to Net Zero.”
In its latest report, Kimmeridge explains that the oil and gas industry should not abandon what it does, but instead more rapidly adopt carbon management practices.
“Properly set net-zero goals can counter the narrative set by standards organizations that the only path forward for the E&P sector is winding down its business,” Kimmeridge reported. “The net-zero ambition needs to be credible, which means the net-zero targets need to be well defined, complemented by interim targets and disclosures, and most importantly, accelerated. In short, net-zero by 2030 should be the standard for the energy sector.”
Hart Energy recently talked with Megan Hays, managing director at Kimmeridge and one of the lead authors of the report. Hays discussed how the industry can achieve its net-zero goals in a shortened time frame, rather than decades out, as well as some of the E&P companies that have been leaders in achieving their net-zero goals.
- 0:43 – The message Kimmeridge is sending to the oil and gas industry
- 2:36 – Kimmeridge’s position on displacement of oil and gas
- 3:30 – Why the push for a shorter-term net-zero goal
- 5:31 – Companies who are achieving early net-zero goals
- 7:43 – Explaining “high quality” carbon offsets
- 8:32 – Overcoming challenges in differences in emissions reporting
- 9:22 – Risk of not prioritizing climate initiatives
- 11:26 – Leveraging free cash flow to achieve net-zero ambitions
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