Devon Energy Establishes New Environmental Performance Targets Including Net Zero GHG Emissions
June 21 2021 - 6:58AM
Devon Energy Corp. (NYSE: DVN) announced today it is establishing
new environmental performance targets focused on reducing the
carbon intensity of its operations, minimizing freshwater use, and
engaging constructively with its value chain.
“We know that strong environmental performance is essential to
protecting the communities in which we live and operate, managing
risk, and generating long-term value for stakeholders,” said Rick
Muncrief, President and CEO. “Devon is setting aggressive goals to
lower its carbon impact, while continuing to return value to
shareholders. We know the need for oil and gas will remain for
decades, but as good stewards, it is incumbent on us to improve how
we produce and deliver it.”
NET ZERO GHG EMISSIONS
Since its founding in 1971, Devon has been at the forefront of
technological innovation in the oil and natural gas industry. The
company’s long history of using advanced technologies to improve
efficiencies across the business will be key to delivering on its
ambition to achieve net zero GHG emissions for Scopes 1 and 2 by
2050.
In pursuit of continued transparency, Devon will refresh its
Climate Change Assessment Report by year-end 2021, outlining its
approach to proactively address climate-related risks and
opportunities.
GHG AND METHANE EMISSIONS REDUCTIONS
To demonstrate Devon’s progress in achieving its longer-term net
zero ambition, the company is targeting reductions of its Scopes 1
and 2 GHG emissions intensity by 50% and methane emissions
intensity by 65% by 2030 from a 2019 baseline.
Devon’s emission reduction strategy will involve a range of
potential actions including expanding its leak detection and repair
program; implementing advanced leak detection technologies;
reducing the volume of natural gas that is flared; electrifying
facilities to reduce the use of natural gas and diesel consumed
onsite, including transitioning from gas-driven to air-driven
pneumatic controllers; and optimizing facility design to minimize
leaks and eliminate common equipment failures.
FLARING PERFORMANCE
A key component of Devon's broader emissions reduction strategy
is to focus on reducing flared volumes to protect the
environment.
Devon is establishing a two-pronged approach to improve its
flaring performance — targeting a flaring intensity of 0.5% of
gross natural gas produced by 2025 and eliminating routine flaring,
as defined by the World Bank, by 2030. The company expects to drive
results by continuing to engage in pre-production planning,
optimize facility design and operating conditions, assess and
deploy beneficial reuse technologies, and collaborate with service
providers to prevent and mitigate midstream and downstream
constraints.
WATER CONSERVATION
Devon is committed to conserving and reusing water and has set a
target to advance its recycled water rate and use 90% or more
non-freshwater for completions activities in its most active
operating areas within the Delaware Basin. To minimize freshwater
use, the company employs economically and operationally feasible
freshwater alternatives wherever possible and has a dozen water
recycling facilities throughout the basin.
VALUE CHAIN ENGAGEMENT
Devon will continue evaluating how it can constructively engage
stakeholders upstream and downstream of operations to improve ESG
performance across its value chain. By 2023, Devon’s contractors
who perform work on Devon locations will begin undergoing annual
evaluations to assess their ESG performance in key areas.
“Devon is proud to produce affordable, accessible energy that is
vital to powering modern life, while further minimizing our carbon
footprint,” said Clay Gaspar, Chief Operating Officer. “Our new
targets reflect our dedication and commitment to achieving
meaningful emissions reductions while pursuing our ultimate goal of
net zero GHG emissions.”
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with
a premier multi-basin portfolio headlined by a world-class acreage
position in the Delaware Basin. Devon’s disciplined cash-return
business model is designed to achieve strong returns, generate free
cash flow and return capital to shareholders, while focusing on
safe and sustainable operations. For more information, please visit
www.devonenergy.com.
Investor Contacts |
Media
Contact |
Scott Coody, 405-552-4735 |
Lisa Adams, 405-228-1732 |
Chris Carr, 405-228-2496 |
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FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within
the meaning of the federal securities laws. Such statements are not
promises or guarantees of future conduct or policy and are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond our control. Consequently, Devon’s actual activities and
future results, including the development, implementation or
continuation of any program, target or initiative discussed in this
press release, may differ materially in the future due to a number
of factors, including, but not limited to, the risk that Devon is
unable to implement the new technologies and practices contemplated
to achieve the environmental performance targets successfully or on
a timely basis; the risk that such technologies and practices
result in higher than anticipated costs or cause operational
disruptions that adversely impact Devon’s financial performance;
and the other risks identified in Devon’s 2020 Annual Report on
Form 10-K and its other filings with the Securities and Exchange
Commission. The forward-looking statements in this press release
are made as of the date hereof, and Devon does not undertake, and
expressly disclaims, any duty to update or revise our
forward-looking statements based on new information, future events
or otherwise.
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