Achieving sustainable development goals in the oil and gas industry requires a multifaceted approach that balances economic growth with environmental protection, social responsibility, and long-term viability.
Major oil companies are increasingly prioritising sustainability and implementing strategies to address environmental, social, and governance (ESG) concerns.
Rig to Pump highlight some key strategies to promote sustainable practices within the industry with examples of what major oil companies are doing in line with the strategies:
Investment in Renewable Energy:
Encourage diversification of energy sources by investing in renewable energy technologies such as solar, wind, and hydroelectric power. Transitioning towards cleaner energy sources reduces greenhouse gas emissions and minimises environmental impact. It may be of note to mention what few of the companies have done in this regard:
Shell has been actively investing in renewable energy projects, including wind, solar, and biofuels. They aim to allocate up to 10% of their annual capital expenditure towards new energies by 2030, while Total Energy has diversified its portfolio to include renewable energy sources such as solar and wind power. They have set a target to reach 35 gigawatts of gross renewable energy capacity by 2025.
Efficient Resource Management:
Implement efficient resource management practices to minimise waste, optimise production processes, and reduce environmental footprint. This includes adopting advanced technologies for exploration, drilling, extraction, and refining operations to maximise resource recovery and minimise energy consumption.
ExxonMobil, Chevron, BP, and Equinor are each committed to implementing advanced technologies and operational excellence to optimise resource utilisation, maximise recovery, and minimise environmental impact. ExxonMobil focuses on improving energy efficiency and reducing emissions, Chevron employs advanced drilling techniques, BP aims for net-zero carbon emissions by 2050 through CCUS projects, and Equinor is actively involved in offshore wind energy projects while minimising environmental impact.
Environmental Conservation:
Prioritise environmental conservation by implementing stringent environmental protection measures, such as reducing air and water pollution, mitigating habitat destruction, and preserving biodiversity. Adherence to environmental regulations and best practices ensures responsible stewardship of natural resources and ecosystems.
BP has committed to achieving net-zero carbon emissions by 2050 or sooner through investment in carbon capture, utilisation, and storage (CCUS) projects, while Equinor is actively engaged in environmental conservation, particularly in offshore wind energy projects, as part of their goal to lead the energy transition while minimising environmental impact.
Community Engagement and Stakeholder Collaboration:
Foster positive relationships with local communities, indigenous groups, and other stakeholders by engaging in transparent communication, consulting with affected parties, and addressing social concerns. Collaborative initiatives, such as community development projects, capacity building, and local employment opportunities, promote social inclusion and enhance mutual trust and cooperation.
Chevron and ExxonMobil both prioritise community engagement by implementing programs focused on community development, education, and capacity-building projects. They emphasise stakeholder consultation and collaboration to address community needs and ensure indigenous voices are heard in project planning and implementation.
Health and Safety Standards:
Uphold rigorous health and safety standards to protect the well-being of workers, communities, and the environment. Implementation of robust occupational health and safety protocols, emergency response plans, and risk management strategies minimises the likelihood of accidents, injuries, and environmental incidents.
Major oil companies, including Shell, Total Energies, ExxonMobil, and Chevron, prioritize health and safety across their operations. They implement rigorous protocols, training programs, and technology to protect workers and communities and maintain a culture of safety.
Technology Innovation and Research:
Promote innovation and research in clean technologies, carbon capture and storage, and sustainable practices to drive continuous improvement and reduce environmental impact. Investing in research and development facilitates the adoption of cutting-edge solutions for enhancing efficiency, reducing emissions, and mitigating environmental risks.
ExxonMobil invests in research and development to develop cleaner technologies and reduce emissions from its operations. They collaborate with academic institutions and research organisations to advance sustainable solutions, while other companies such as BP also invests in technology innovation to enhance energy efficiency, reduce carbon emissions, and develop low-carbon solutions. They focus on developing next-generation technologies for the energy transition.
Transparency and Accountability:
Embrace transparency and accountability in corporate governance, reporting, and decision-making processes. Companies should disclose relevant environmental, social, and governance (ESG) metrics, adhere to international standards and guidelines, and actively engage with stakeholders to build trust and credibility.
Most of the multinationals are committed to transparency and accountability, regularly disclosing ESG performance metrics and engaging with stakeholders through dialogue and consultation. Few of the companies publishes annual sustainability reports and participates in ESG ratings and rankings to demonstrate transparency and accountability to investors and stakeholders.
Climate Action and Carbon Neutrality:
Commit to climate action by setting ambitious emission reduction targets, investing in carbon offset projects, and transitioning towards carbon-neutral operations. Adoption of cleaner technologies, energy efficiency measures, and carbon pricing mechanisms contributes to mitigating climate change and achieving long-term sustainability goals.
Corporate Social Responsibility (CSR) Initiatives:
Implement CSR initiatives that create shared value for communities, promote socio-economic development, and support sustainable livelihoods. By investing in education, healthcare, infrastructure, and social welfare programs, companies can contribute to poverty alleviation, economic empowerment, and inclusive growth.
Partnerships and Collaboration:
Foster partnerships and collaboration across government, industry, academia, and civil society to address complex sustainability challenges collaboratively. Multi-stakeholder initiatives, public-private partnerships, and industry alliances facilitate knowledge sharing, capacity building, and collective action towards achieving common objectives
Taking cognisance of how the industry players have taking proactive steps to address sustainability challenges and contribute to global efforts towards a more sustainable energy future, there is still the need to enhance these strategies and embrace a holistic approach to sustainable development. The oil and gas industry can play a pivotal role in advancing global sustainability goals while ensuring long-term prosperity for current and future generations.
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