E&P Plus Cover Story: ESG in Oil and Gas—Searching for Answers

Building an ESG case and presenting the right evidence to stakeholders across the value chain has become a riddle wrapped in a mystery inside an enigma for producers and service providers in oil and gas. So how are they setting about solving it?

(Source: Shutterstock.com and Hart Energy/Melissa Ritchie)

If you want answers to ESG in oil and gas, be prepared to join the search party. The answers are hard to decipher, mainly because ESG in oil and gas remains something far from a black-and-white issue with unquestioned solutions. Collectively, the work is being done; it’s just that there isn’t really one right way, one right measurement or one all-encompassing goal between all three prongs of ESG—as of yet.

“There’s a different answer between the E, the S and the G,” admits Sean O’Donnell, managing director with Quantum Energy Partners, one of the largest private equity investors in oil and gas. “Private equity has always had the ‘G’ figured out pretty well in terms of ownership, alignment and control. You’re seeing the conversation in the public market change to catching up on having ESG-oriented scorecards.”

So, the money wants ESG to be a big part of the oil and gas industry. That’s a well-documented fact that satisfies why producers and oilfield service (OFS) providers are scrambling to get their ESG-friendly operations and reporting in order.

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Len Vermillion

Len Vermillion is Hart Energy's editorial director. Based in Houston, Texas, he manages an editorial department consisting of HartEnergy.com, Oil and Gas Investor, E&P and Midstream Business, as well as nine digital newsletters and several special projects.