I hope everyone had a safe and restful Memorial Day and thank you to the men and women who served in the Armed Forces and made the ultimate sacrifice for our country. Most of you have seen the news regarding the landmark ruling by a Dutch court last week ordering Royal Dutch Shell to cut greenhouse gas emissions by 45% before 2030. Analysts predict that with this ruling, similar lawsuits in other European countries could swing in the same direction creating a ripple effect of harsher restrictions on emissions. Interestingly, 3x the number of lawsuits seeking relief from climate change have been filed in U.S. courts compared to various other countries (Reuters). These lawsuits are targeting companies including BP Plc, ExxonMobil, and Chevron Corp and are seeking damages to pay for sea walls and other infrastructure to guard against extreme weather as a result of rising sea levels (Reuters). Our industry is actively investing in clean energy but the percentage increase in climate-friendly initiatives is small (up 4% compared to 1% from the previous year (Bloomberg). The figure below depicts the global investment in clean energy technologies from IEA and much of this shift has been driven by European companies.
It will be interesting to watch this figure change in the next few years as more pressure is applied on U.S. based companies to increase investment in clean energy (specifically in some of the smaller categories like low-carbon fuels and CCUS). Based on the information above, this energy transition will be slow but as most of us know, change is imminent.
As we brace for this change, our decisions will be key in maximizing our assets and deriving value. If you work unconventional assets, don’t miss Kyle Haustveit’s Distinguished Lecture series on “Making Decisions Using Completions Diagnostic Tools in Unconventional Reservoirs” which is being held virtually today (register here)! Our next monthly meeting will be on June 16th featuring Beth McDonald presenting “Leading Through Challenging Times” (register here). The YPs are hard at work planning the next in-person networking event for the last week of June so please keep an eye on the website to register once that event is posted. Finally, we are working to bring back all of our wonderful sports and social events that had to be postponed or cancelled due to COVID-19 so please keep an on website as we head into the fall months for our Annual Clay Shoot and other events!
Many of you have asked when we plan to return to in-person meetings and I assure you that we are working hard to make this a reality sooner than later. Unfortunately, many venues and campuses (including our beloved Brookhaven campus) are still closed and not offering rental space so we are actively working to find other solutions that are central to the Dallas area. I hope to see all of you at our in-person networking events (these are not only for the YPs!) and as soon as we can schedule in-person meetings, you will be the first to know.
As always, please don’t hesitate to reach out and I look forward to seeing all of you soon!