Dear Stakeholders,
EOG’s value proposition and energy transition strategy are one in the same – to be among the lowest cost, lowest emissions and highest return producers, playing a significant role in the long-term future of energy.
To meet the dual challenge of the energy transition - supplying reliable, affordable energy while addressing climate risk - requires investments in technology to reduce emissions across all forms of energy supply, not the elimination of energy sources. The growth of future demand will require energy supplies from all sources, including oil and natural gas. EOG’s robust inventory of premium resources, those that deliver at least a 30% well-level returni at $40 oil and $2.50 natural gas, positions us to play a significant role in the long-term future of energy.
Piloting Carbon Capture and Storage
EOG piloted a CCS project to capture and store concentrated CO2 emissions from the treating of our natural gas at a facility in Texas. The injection well was permitted and construction began in the summer of 2022 and initial CO2 injection commenced in 2023.
Joined OGMP 2.0
In early 2023, EOG joined the Oil and Gas Methane Partnership (OGMP) 2.0, a comprehensive measurement-based reporting framework designed to improve the accuracy and transparency of methane emissions reporting in the oil and gas industry.
2022 Industry Wildlife Stewardship Award Recipient
EOG was recognized by the Wyoming Fish & Game Department for the positive impact our stewardship and conservation activities have had on wildlife and habitat in Wyoming.
EOG's culture drives employee engagement, satisfaction and performance by empowering employees as idea generators and decision makers; enabling innovation and continuous improvement with creative technology solutions and access to real-time performance data; and fostering collaboration through multidisciplinary teams across operating areas and cross-company communication channels.
Broad Recognition from Energage's Top Workplace
EOG continues to be recognized as a Top Workplace, a designation awarded to companies that create a positive work environment by prioritizing a people-centered culture and giving employees a voice.
EOG's strong corporate governance practices enhance board and management accountability to our shareholders and other stakeholders and enhance our risk oversight and management efforts.
In 2022, the Compensation and Human Resources Committee again established a separately weighted ESG-related annual performance goal and increased the weighting to 10%. The goal included the following:
- Reduce total recordable incident rate and oil spill rates below the prior three-year averages
- Maintain gas capture rate of 99.8% or higher
- Reduce GHG, methane, and flaring emissions intensity rates compared with 2021
In 2023, the Compensation and Human Resources Committee increased the separately weighted ESG-related performance goal to 15%.