With intensifying concerns over energy crisis, U.S. oil producers are now drilling more. In the longer term, this would translate into higher returns, which would lead to more investment toward climate goals, noted Alisa Lukash, vice president of shale research at Rystad Energy.

“Companies are facing this challenge on how to balance between keeping focus on reduced GHG intensity and at the same time ramping up production and overcoming supply chain bottlenecks,” Lukash told Hart Energy’s Faiza Rizvi.

Even though absolute emissions will spike in the short term due to increased production, Lukash said that in the longer term, more activity will have a positive impact on climate goals since more drilling will generate more cash flow, which will be redirected toward sustainability initiatives.