Our Position on Global Climate Change : EOG Resources, Inc.


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				EOG Home > Corporate Responsibility > Global Climate Change Global Climate Change EOG’s Position on Global Climate Change Emissions Management and Reporting Conservation Programs Regulatory Risks Physical Risks EOG’s Position on Global Climate Change EOG supports efforts to understand and address the contribution of human activities to global climate change through the application of sound scientific research and analysis. Approximately 85 percent of EOG’s total current production is natural gas, one of the cleanest burning and most environmentally–friendly fossil fuels. In addition, we believe that the reduction of emissions throughout our operations is both in the best interests of the environment and a prudent business practice. A safety and environmental report that includes climate change issues is presented to the EOG Board of Directors annually. EOG is a member of the American Exploration and Production Council (AXPC), a national trade association that represents large United States independent natural gas and crude oil exploration and production companies. AXPC companies have been active in voluntarily reducing methane emissions. Additionally, the AXPC has issued a formal position statement on climate change, which supports continued research on the contribution of human activities to climate change and the development of policy and regulatory initiatives in a sound scientific and economically transparent manner. The AXPC supports the sharing of best management practices and recognizes that natural gas will be a critical component of any climate change policy. The complete AXPC position statement, which EOG supports, is available at http://www.axpc.us/enviro/pdf/070509.pdf. EOG is also a member of the Independent Petroleum Producers of America (IPAA), a national trade association that represents independent oil and natural gas explorers and producers in the United States. The IPAA and many of its member companies support programs to voluntarily reduce methane emissions. With respect to climate change, it is the stated position of the IPAA that science must serve as the foundation for global climate policymaking; economic and social impacts must be addressed; and the role of American oil and natural gas production must be recognized in any policy actions. Our company strives to promote policies within these and other trade associations that are consistent with EOG’s position on global climate change. Top of Page Emissions Management and Reporting EOG is developing a system that will be utilized in estimating greenhouse gas (GHG) emissions from all of its operating facilities. The system will compute emissions based on the EPA–recognized AP–42 standard, where applicable, and on commonly accepted engineering practices. The system is expected to be tested in 2008, and EOG is planning to report estimations of its GHG emissions for 2009 in the report which will be submitted to the Carbon Disclosure Project (CDP) in 2010. EOG provided responses to the CDP5 questionnaire for its 2006 operations and plans to continue to participate annually. It should be noted that EOG expects to increase production and drilling activity in future years, as a normal part of the company’s growth. Therefore, on an overall basis, EOG expects that total GHG emissions from its operations may actually increase but decline on a per–unit–of–production basis. Top of Page Conservation Programs EOG frequently reviews its energy use and efficiency, and takes appropriate actions to reduce consumption as well as improve efficiency as a normal part of our operations. As a result of the energy reviews, we have installed electric or dual–fuel compressors in some areas. Additionally, in support of recent regulatory initiatives, EOG has accelerated its use of electric–driven compression in certain regions of the United States to lessen the emissions generated in those areas. Top of Page Regulatory Risks EOG is aware of the increasing focus of national and international regulatory bodies on GHG emissions and climate change issues. We are also aware of legislation, recently proposed by the Canadian legislature, to reduce GHG emissions. Additionally, proposed United States policy, legislation or regulatory actions may also address GHG emissions. EOG will continue to monitor and assess any new policies, legislation or regulations in the areas where we are operating to determine the impact on our operations and take appropriate actions, where necessary. EOG believes that any new climate change policies must be based on sound scientific and economic considerations, which are fully disclosed to the public, and rely on market forces to efficiently encourage consumer conservation and the development of alternative energy sources. Also, EOG believes that application and enforcement of policies and regulations should apply appropriately to all sectors of the economy and be uniform at the local, state, national and international levels. Moreover, EOG believes any emissions limits or standards imposed on industry should be based on reliable, available and economically feasible technology. Since GHG emissions from the combustion of natural gas are among the lowest of any fossil fuel on a per–unit basis, EOG expects that the increased use of natural gas in preference to other fossil fuels will be a critical component of any climate change policy. EOG will strive to increase its production of natural gas where economically feasible in response to this expected increase in natural gas demand. Top of Page Physical Risks EOG has offshore operations in the Gulf of Mexico and Trinidad and interests in properties operated by third parties in the United Kingdom North Sea. These facilities are subject to environmental risks, including sea level changes and extreme weather conditions such as hurricanes. Extreme weather conditions could also impact other areas of our operations, including access to our drilling and production facilities for routine operations, maintenance and repairs and the installation of new facilities. We will continue as part of our planning process to review the risks to the company posed by diverse environmental matters, including climate change. Mark G. Papa Chairman and Chief Executive Officer Top of Page	Search EOG:

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