Opinion: ESG Ain’t the Villain

With mounting concerns of energy security, there is a greater need for oil and gas companies to adopt a concrete ESG strategy.

(Source: Calin Tatu/Shutterstock.com)

Even though Russian President Vladimir Putin has never been a big fan of the U.S. shale, his recent Ukrainian invasion triggered a chain of events leading the Biden administration to ask U.S. oil and gas companies to drill more oil and gas.

As producers scramble to increase production, some industry folks are taking this chance to vilify ESG by saying ‘if only ESG didn’t push investors away from fossil fuels,’ and ‘this is the end of the ESG era.’

I beg to disagree with these statements.

ESG was never an obstacle for oil and gas, and to debunk a myth you’ve probably heard a lot—it’s not just an “impress-the-investor scheme” either. In fact, a well-devised strategy to deal with ESG issues is a glaring opportunity, which—if used in the right way—can bring numerous benefits to the business. 

Especially now, when the Biden administration has finally realized the need to ramp up domestic oil and gas production to ensure energy security, there is a greater need for producers to adopt a robust ESG strategy. This includes attracting new types of investors and promoting long-term financial outcomes as well as focusing on responsible production by promoting sustainability and slashing emissions

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.