Environment, Social & Governance
2024 Sustainability Report shows H&P cut its emissions intensity by 34% since 2018
H&P achieved an overall emissions intensity reduction of approximately 11% in 2024, which was approximately 6% higher than the average annual reduction of 5% from 2018 to 2023, the company stated in its 2024 Sustainability Report.
In total, H&P has seen a nearly 34% reduction in its emissions intensity since 2018. This means the company has already achieved a target it had set for 2030 for a 30% reduction in net CO2e per distance drilled, compared with a 2018 baseline.
The report highlighted the increased use of highline power as part of the company’s emissions reduction efforts. During 2024, an average of 21 rigs ran on highline power, displacing an estimated 7.8 million gallons of diesel fuel equivalent to 80,000 metric tons of CO2e. On average, highline-powered rigs emit approximately 40% less greenhouse gas emissions than those running on standard diesel engines.
In addition, the report noted that the company continues to employ more advanced data and software to monitor energy use and identify efficiency opportunities as part of its engine management product offerings to operators.
Further, in 2024, there were zero reportable spills in H&P operations. This achievement was partly attributed to the roll-out of a comprehensive scenario-based spill prevention training program to rig-based employees.
Report: High-impact exploration can help cut emissions
Oil and gas exploration has a role to play in decarbonization efforts by providing advantaged barrels in the energy transition, according to a new report from Wood Mackenzie.
The firm estimates that the world already has more than 45 years of oil resources needed and more than 60 years of gas resources needed. “With so much in place, it begs the question – why is exploration still needed?” said Andrew Latham, SVP Energy Research. “It’s important to point out that newly discovered fields would not increase demand, as demand neither grows when exploration succeeds nor shrinks when it fails. What can be said is that successful exploration cuts carbon intensity, lowers the cost of oil and gas to consumers, and adds value for both resource holders and explorers. As demand is proving resilient, investment in new supply is needed to displace dirtier alternatives.”
According to the report, lowering Scope 1 and 2 emissions is better served by finding new fields than by cleaning up old ones. New fields are cleaner, thanks to modern decarbonization technologies and higher facilities throughput.
Wood Mackenzie’s research shows that new fields about to begin production in the next few years will have an average Scope 1 and 2 emissions intensity of 17 kgCO2e/boe over 2025-2030. That compares with existing supply from mature fields averaging 28 kgCO2e/boe.
“Potential gains are not trivial,” Mr Latham said. “Exploration through the current decade is on track to provide 12% of global oil and gas supply. If we assume that these new fields displace existing supply options with emissions intensity typical of older fields, then global Scope 1 and 2 emissions in 2030 would be cut by around 6%, or 100 Mtpa CO2e.”
In this regard, deepwater exploration in frontier basins can offer the most effective plays. Deepwater projects enjoy high recovery per well and tend to have lower emissions intensity (<15tCO2e/kboe) than shelf and onshore projects.
“Huge exploration opportunities still exist, but exploration does suffer from a serious image problem,” Mr Latham said. “The widespread perception that exploration is bad for the climate threatens everything from access to opportunity and the social licence to operate to talent attraction and retention. That misconceptions abound in this regard does not mean they will be easily overcome. Exploration has a role to play in decarbonizing oil and gas supply.”
Equinor, partners approve execution of UK’s first CCS projects in Teesside
Equinor, alongside project partners, has announced financial close after taking a final investment decision (FID) to progress to execution phase on two of the UK’s first carbon capture and storage (CCS) projects in Teesside – the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power).
NEP is the CO2 transportation and storage provider for the East Coast Cluster. Construction is expected to commence in mid-2025, with startup in 2028. It includes a CO2 gathering network and onshore compression facilities, as well as a 145-km offshore pipeline and subsea injection and monitoring facilities for the Endurance saline aquifer. It could transport and store up to 4 million tonnes per year of captured CO2 emissions from three Teesside projects initially, rising to an average of 23 million tonnes by 2035.
NZT Power will be a first-of-its-kind gas-fired power plant with carbon capture. It will have the capacity to generate up to 742 megawatts of decarbonized power and capture up to 2 million tonnes of CO2 per year for transport and storage by the NEP.
