• Will US Energy Companies Pledge to Cut Emissions?

Analytical Instrumentation

Will US Energy Companies Pledge to Cut Emissions?

Feb 05 2021

With Joe Biden now at the helm, pressure is mounting on US oil producers to cut emissions and set ambitious climate change targets. Independent oil and gas producer Pioneer Natural Resources is a pioneer of the movement, promising to reduce greenhouse gas emissions by 25% by the end of 2029. Rivals ConocoPhillips and Occidental Petroleum are also setting new environmental standards for American oil companies, a trend that’s heavily influenced by European producers.

Mark Burg, Executive Vice President of Pioneer Natural Resources says the company is under increasing pressure from eco-conscious investors. “I think it’s becoming increasingly important for investors to be able to address all aspects of ESG in their business.”

A new focus on emissions

The ESG acronym Burg refers to stands for environmental, social and corporate governance. It represents the key factors that measure the sustainability and societal impact of a business or company. It can also be used to predict the future success of an entity. “Emissions … The list on the ‘E’ side of the ESG is so high that I think we will be able to focus on that,” adds Burg.

European majors such as Shell, Total and BP are at the vanguard of the movement, all pledging to hit net zero emissions by 2050. Eni, Equinor and Repsol have also made similar commitments. In the past, shareholder pressure came primarily from religious groups, socially-focused investors and pension funds. Now, climate change is a front-of-mind topic and investors are forcing it onto the stage. After years of sluggish investment, analysts say a new focus on emissions could help boost cashflow and increase returns for US energy companies.

Decarbonising the grid

A new report from Morgan Stanley predicts coal will be eliminated from the US power grid by as early as 2033.  By 2030 the American investment bank and financial services company estimates almost 40% of US electricity will be generated by renewables, with this number increasing to 55% by 2035. Environmentally-minded states like California are setting new benchmarks, with the Department of Transportation installing more than 20 rapid charge EV stations along major highways. Free to use with no time limit, they’re designed to encourage the use of EVs in the Golden State.  

Want to know more about how climate change is transforming the energy landscape? ‘The intersection of sustainability and tribology’ explores how a better understanding of friction, lubrication and wear can impact the development of sustainable practices.


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