ESG has always been part of their career


The focus on ESG – Environment, Social and Governance – and its impact on energy companies caught the attention of the organizers of the Permian Basin Petroleum Association’s annual meeting, with an afternoon panel discussion focusing on on the subject.

Michael DeShazer, vice president of the Permian business unit for Cimarex Energy, said ESG has been part of his career since before it became known as ESG, a sentiment that sparked the deal. other panelists Dan Noack, vice president, alternative energy and process optimization at Plains All American, and Joe Niederhofer, senior vice president, operations at Rattler Midstream.

“What has changed is the volume of the discussion,” he said.

Noack agreed, saying there had been a tsunami of talk on the subject from analysts, investment funds and bondholders about what the company is doing on ESG issues and how. it tracks the results.

Niederhofer said Diamondback Energy – the parent company of Rattler Midstream – tries to be environmentally responsible by producing every barrel of oil and Mcf of natural gas. The industry as a whole is looking at what it does well and how to do it better, he said.

The three cited technological efforts to improve their environmental footprint, with DeShazer citing Cimarex’s efforts to reduce emissions and increase its water recycling. He said he was excited about Cimarex’s business with Halliburton to deploy an electric fracking fleet next year that will be powered by the electricity grid. The company is building a substation in Culberson County to support the project.

Noack highlighted Plains’ efforts like energy harvesting and looking to the future with the energy transition by exploring opportunities in hydrogen energy and carbon sequestration.

Niederhofer said his company has increased the percentage of recycled water it uses in its Bluebonnet development – the starting point for Rattler Midstream – and will duplicate that concept in its other areas. Company-wide, the company has grown from 8% of its recycled water from 17% in 2020 to 27% in the first half of this year.

Asked by moderator Tracee Bentley, CEO of the Permian Strategic Partnership about the impact of ‘S’ and ‘G’ in ESG, Niederhofer said his company is headquartered in Midland, its employees are part of the community. and management as well as individual employees support a range of local organizations, from schools to first responders.

Regarding the ‘G’ part of ESG, he said the key was strong leadership and strong board members who make sure the company does what it needs to do to be. respectful of the environment and transparent about these efforts.

The three panelists stressed that successful ESG initiatives must go beyond talking points of senior company executives to investors to the people on the ground who must feel free to implement these initiatives without having to obtain management authorization.

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