Industry Will Not Abandon ESG During Crisis, Others Must not Abandon Industry

During a crisis, such as Russian President Putin’s unprovoked invasion of Ukraine, our industry will not abandon and should not forgo its ESG goals. At the same time, outside investors and interested parties must recognize this is not the time to boycott or divest in domestic energy production. This would be irresponsible and counterproductive to our economic and national security as Putin’s actions have brought to the forefront the need to maximize U.S. domestic energy resources and not be beholden to world tyrants that disrupt and destabilize global energy markets. 

U.S. production can ramp up production in conjunction with energy infrastructure and the pullback of excessive regulatory hurdles, while staying true to its ESG commitments.

The oil and gas industry has adopted ESG into its core values and organizational missions. ESG disclosures are on the rise and being made publicly available on websites through sustainability reports and company annual reports. 

To assist industry partners in adopting ESG programs and meeting requirements, more than four years ago, Energy Workforce and Technology Council launched its ESG Committee and two years ago launched an ESG Certification program. 

Through the ESG Certification program, we are supporting ESG and sustainability as integral to operations. Educating our membership base and others that a properly implemented ESG program can lead to profitability and highlighting that corporate commitment to ESG sets companies apart from their competitors.

We are working with our members to develop clear, smart, achievable and non-duplicative targets that are adaptable to address improving technology and heightened awareness of the importance of ESG issues.

Our team is also seeking reporting standardization in an effort to reduce duplicative efforts to comply with ESG requirements. Often companies face confusion and an unwillingness to engage due to multiple reporting frameworks, key performance indicators and competing metrics.

ESG is about identifying gaps, managing risk and applying what we’ve learned to improve our environmental performance, be a good neighbor in the communities where we operate and make the industry a desirable and equitable place to work. 

Additionally, the industry is setting aggressive goals to reduce emissions and will continue to make great strides in lessening its carbon footprint through innovation, new technology development and implementation, and diversifying domestic energy resources. 

Technologies like CCUS and geothermal are rapidly being improved and perfected by U.S. energy service companies. While often not yet scalable at a commercial level, government investments in this technology will help spur additional investments leading to a growing number of energy choices. 

U.S. energy service companies are also working to bring more of the lithium supply chain to the U.S., which will aid in expanding the ability to locally produce solar panels and lithium batteries.    

Now is not the time to hamper the U.S.’s economic and national security, and that of its allies by sequestering investment in U.S. production. Vilification, boycotts and unnecessary burdensome regulations hurt workers and the workforce, not just industry giants and executives. The industry continues to support the workforce, create jobs and is ready to make a robust turnabout to pre-pandemic production that will boost the economy where we work and produce. 

The industry has the expertise, technology, workforce and innovation to increase domestic supplies of oil and natural gas in a clean, environmentally safe, responsible manner. But to maximize its abilities, government leaders must take immediate action to embrace the security and reliability of domestic energy.

The domestic industry stands ready to meet global energy demand. However, this is only possible through robust investment and consistent support of U.S. oil and natural gas. 

About the author: Leslie Beyer is the CEO of the Energy Workforce and Technology Council, the national trade association for the energy technology and services sector, representing more than 600,000 jobs in the technology-driven energy value chain.