Published by Todd Bush on July 14, 2022
NEW YORK and DENVER, July 14, 2022 /PRNewswire/ -- Kimmeridge, a private investment firm focused on the energy sector, today published a white paper entitled, Why Net Zero Should Be the Standard for the E&P Sector. This report builds on several other white papers from Kimmeridge that have contributed to the evolution of the E&P business model. The firm's research and industry engagement have focused on the need for meaningful change, including prioritizing profitability, aligning management incentives and promoting sustainability through carbon neutrality. Kimmeridge has directly implemented these reforms through its leadership role at Civitas, Colorado's first carbon neutral oil & gas company.
>> Additional Reading: Kimmeridge Publishes White Paper: "Accelerating the Carbon Market: A Call for a Standardized Rating System for Removal and Avoidance Credits"
In this follow-up to Kimmeridge's September 2020 paper, Charting a Path to Net Zero for Oil & Gas Production, the firm acknowledges that the energy sector has made encouraging steps towards reducing the industry's environmental footprint. However, efforts to date have been inconsistent and difficult to compare between companies. Only 13 E&Ps have established net zero targets—with varying definitions, pathways and timelines, which range from "now" to 2050.
Through data-driven analysis of sustainability disclosures from 33 publicly traded E&Ps, the firm's paper assesses the current state of play in the industry and recommends a holistic approach to facilitating large-scale adoption of net zero targets. To this end, Kimmeridge calls for greater transparency around existing environmental targets, more aggressive commitments going forward and a greater sense of urgency around the timelines for execution. In practice, E&Ps must demonstrate:
Ben Dell, Co-Founder and Managing Partner of Kimmeridge, said: "Despite arguments that we must immediately slow or stop investing in oil and gas to accelerate the energy transition, the fact is that prematurely abandoning oil and gas will destine society to higher energy costs and tremendous volatility, disproportionately impacting the lowest income consumers. By focusing on decarbonizing production and making the sector net zero, E&Ps can remain a viable source of energy supply. With the right targets and strategies in place, the sector can contribute to the objective everyone should welcome: reliable energy at the lowest possible cost with a net zero carbon footprint."
Mark Viviano, Head of Public Equities at Kimmeridge, said: "The world has fundamentally changed since our initial Net Zero white paper in 2020. There is increased awareness that the energy transition must balance reliability and affordability with environmental impact. U.S. oil and gas producers are uniquely positioned to play a critical role in the energy transition but doing so will require greater transparency and accountability around their decarbonization efforts. Net zero oil and gas production is the clearest signal the industry can send that it is ready to be part of the solution while enhancing its sustainability in the eyes of investors."
To view more of Kimmeridge's research and thought leadership, please visit: http://kimmeridge.com/research-archive/.
SOURCE Kimmeridge Energy
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🔌 BP's Indiana Exit Is Not the Endgame for Clean Hydrogen ☀️ Cadiz Signs Second MOU for Hydrogen - Solar Development at Cadiz Ranch 🏗️ Heidelberg Materials Inaugurates Brevik CCS...
Inside This Issue 🧩 Who Gets Left Behind? Inside the Senate Plan Reshaping America's Clean Energy Future 🌿 TMD Energy Limited Enters into Strategic Memorandum of Agreement to Advance Green Bioener...
Inside This Issue 🛑 BP Pauses Project to Pipe, Store Carbon Emissions Underground in Indiana Indefinitely 🤝 Deep Sky Announces Multi-Year Offtake Agreement with Rubicon Carbon 🤖 Automating Hydroge...
Industry-first framework addresses critical gaps in carbon capture verification, enabling safer, more bankable projects DNV has released a new service specification (DNV-SE-0696) for the verificat...
Cadiz Signs Second MOU for Hydrogen - Solar Development at Cadiz Ranch
Clean energy and digital infrastructure projects at Cadiz expected to generate $7-$10 million per year in lease revenue and water supply sales, in addition to supporting sustainable water and farmi...
Expro Wins Well Test Contract for Major UK CCS Project
Latest contract extends Expro’s decade-plus support of the UK Carbon Capture and Storage (CCS) industry ABERDEEN, Scotland--Energy services provider, Expro (NYSE: XPRO), has secured a key contract...
MAX Power Team Identifies Rare Basement Source Rocks as Potential Natural Hydrogen Source
Multi-Well Drill Program Planned for Target-Rich Areas MAX Power Acquires Exploration Permits Covering 1.3 Million Acres Vancouver, British Columbia--(Newsfile Corp. - June 18, 2025) - MAX Power M...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.