Enverus President Talks Rise of ESG Investing in Oil and Gas

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.

Capital markets and policymakers are taking climate change seriously, Nikhanj told Hart Energy’s Faiza Rizvi, adding that investors and companies evaluating portfolios and quantifying ESG investments are on the rise. Additionally, he noted a good ESG program requires smaller capital investments, which is why he sees ESG investments as a “win-win” for oil and gas operators.