Pioneer also plans to release its first-ever Climate Risk Report later this year detailing the company’s progress towards fully implementing Task Force on Climate-related Financial Disclosure principles into its business strategy, risk management, scenario planning and target and goal setting processes. (Source: Photo collage by Hart Energy; images by Pioneer Natural Resources Co., Hart Energy)
Pioneer Natural Resources Co. adopted a net-zero emissions target on Sept. 15 that CEO Scott D. Sheffield said will ensure the major U.S. shale producer remains an “ESG leader.”
“We are dedicated to reducing our emissions intensities, being proactive and transparent in our engagement with stakeholders and the communities in which we operate and ensuring our governance policies and performance metrics align with our ESG goals,” Sheffield commented in a company release.
Pioneer is a large independent oil and gas E&P company with operations focused in the Permian Basin. The company grew its acreage position in the basin to over 1 million net acres earlier this year following back-to-back acquisitions of Parsley Energy and DoublePoint Energy.
Alongside the publication of its 2021 Sustainability Report on Sept. 15, Pioneer adopted a net-zero ambition by 2050 for both Scope 1 and Scope 2 emissions that the company said builds on many key initiatives already underway.
Other notable environmental targets include a goal to reduce freshwater use in completions and the implementation of Task Force on Climate-related Financial Disclosure principles, which will be detailed in an inaugural Climate Risk Report Pioneer said will be published during fourth-quarter 2021.
“These efforts, in conjunction with Pioneer’s low breakeven costs, low-emissions intensity, strong balance sheet and highly-skilled and diverse workforce, position the company for continued long-term success,” Sheffield said in the release.
Among the highlights from its sustainability report, Pioneer reported a 27% reduction in greenhouse-gas (GHG) emission intensity and 50% reduction in methane intensity in 2020. These reductions exceeded the company’s previously established targets, according to the release. As a result, the company said it decided to increase its 2030 goals to a 50% reduction in GHG intensity and a 75% reduction in methane intensity from its 2019 baseline.
Pioneer, which previously announced plans to end routine flaring by 2025, also reported a flaring intensity that was 79% lower than its goal to limit flaring to 1% of natural gas produced. Further, the assets acquired in the Parsley and DoublePoint transactions will be incorporated into this target in 2021, the release said.
Chairman of the Pioneer board, J. Kenneth Thompson, also stated: “Pioneer’s goals and strategies will further strengthen our ESG leadership and allow us to provide reliable and affordable, low-emissions intensity, oil and gas to the world. Pioneer’s best-in-class assets and people, coupled with our commitment to environmental stewardship, position the company to remain a sustainable supplier of the world’s energy needs for decades to come.”
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