The oil and gas industry is at an inflection point: according to the International Energy Agency (IEA), the role that natural gas can play in the future of global energy is inextricably linked to its ability to help address environmental problems.
One of these problems is methane emissions–a key focus of the World Gas Conference in Washington, D.C. this week–which represent a reputational risk to the oil and gas industry, a waste of saleable resources, and a contributor to both poor local air quality and climate change.
This article was originally published in Petroleum Economist.
With the corporate annual shareholder season coming to a close and the World Gas Conference around the corner, one thing is abundantly clear – investors are strengthening their stance on climate, and they want the oil and gas industry to step up and reduce methane emissions.
In an open letter in the Financial Times earlier this spring, investors overseeing more than $10.4 trillion wrote they are expecting the oil and gas industry to change how it operates and transition its operations and corporate strategy to a low-carbon economy.
In the past three years, nearly 40 methane shareholder resolutions have been filed, and it doesn’t require a crystal ball to know that more are coming. This year’s shareholder season included 11 methane issue resolutions; eight were withdrawn (meaning the companies took action on their own without a vote). Chevron shareholders generated a 45 percent vote in favor of a methane resolution, and Range Resources’ resolution passed with a majority vote, while Kinder Morgan garnered a strong 38 percent shareholder vote.