Innovative processes. Leading technology. Efficient operations. We reduce our environmental footprint using the same tools we use to find and produce low-cost oil and gas.
Engagement with our communities. Diversity of our workforce. Safety of our employees. Our unique culture is more than a competitive advantage, it’s fundamental to our social sustainability.
Ethics. Respect. Fairness. Governance at EOG is more than just complying with the law, it’s about ethically conducting our business to build trust among all our stakeholders.
EOG proactively manages and minimizes greenhouse gas emissions from our operations by using innovative technology and practices, advance infrastructure planning, and efficient facility design. We continuously look for ways to improve the design of our facilities to minimize emissions and maximize the recovery of resources. Our facilities are also periodically reviewed to optimize equipment and implement new technologies. Where operationally appropriate, we install specialized control equipment. In addition, we develop and implement proprietary applications to optimize equipment efficiency and reduce emissions from our operations.
In addition to our focused efforts to optimize specific facility equipment components, we also apply facility-level technologies and practices. These include Closed Loop Gas Capture (CLGC) that
minimizes flaring during downstream interruptions, advanced planning of facility design and take away optionality, our leak detection and repair (LDAR) program, and continuous methane monitoring.
Many of the practices and technologies used by EOG are only possible because we operate significant portions of our own gathering and boosting infrastructure. This increased operational control and footprint allows us to further optimize how we manage our operations to drive emissions reductions across a larger scope of the value chain.
The diagram below highlights targeted practices, in-field equipment, and in- house technologies and solutions we implement to reduce emissions at our facilities.
Over the last several years, our leak detection and repair program, or LDAR, has advanced from audio-visual-olfactory (sound-sight-smell) surveys to surveys using more accurate optical gas imaging to today’s deployment of scalable solutions of the latest technology — continuous methane monitoring. This technology detects potential leaks and provides real-time alerts to help accelerate repairs and will provide data and trend analysis to potentially prevent future methane releases.
We have been evaluating continuous methane monitoring technology for the past few years. There are several third-party systems available to monitor and detect potential methane leaks, using either intermittent or continuous monitoring technology. About 18 months ago, we began a pilot project using a solution we built in-house, named iSense, which is a monitoring solution that uses methane sensing technology to continuously monitor facilities and provide real-time alerts of
potential leaks to a control center. We tested iSense against other monitoring solutions in use and available on the market today and confirmed that our sensor detected methane release events consistent with these third-party systems. The results from these tests confirmed that iSense is the most effective solution for EOG to use to detect leaks and accelerate repairs while also being scalable and economic.
Like so many of our innovations, this technology has been spearheaded by our employees across the company. Since the pilot, our employees are rapidly deploying iSense in the field, prioritizing areas of highest potential impact. The initial installations are focused in the Delaware Basin and currently cover about 60% of our production.* We expect that most of the remaining Delaware Basin production will be monitored by iSense by year-end. We plan to continue to roll out iSense in other operating areas next year.
Using our proprietary system allows us to own the data creation, flow, and storage, which is a priority with all our information systems. Owning the iSense data and retaining direct control of its collection provides invaluable flexibility to improve both data quality as well as the tools to analyze and integrate iSense data with existing operational data from our production facilities. This data, along with our ability to monitor our operations from any one of our four control centers, will enhance the 24/7 capability to continuously identify, prioritize, and repair leaks. In the future, when data from iSense is paired with other real-time production and facilities data, we expect to be able to make improvements in the design of facilities to minimize releases. We are also optimistic that we will be able to more readily determine the source of a methane release and assess its likely size.
The development and testing of continuous methane monitoring technologies and systems is an example of how EOG’s decentralized structure fosters innovation and drives performance improvements. Our iSense system is the product of EOG employees working on multidisciplinary teams to identify opportunities to improve and being empowered to develop, test, and pilot a solution.
Leveraging technology to enhance our methane leak detection and repair program is another great example of EOG’s culture of continuous improvement throughout our operations.
* Based on percentage of gross oil production handled at central tank batteries covered by iSense.
EOG’s environmental stewardship practices leverage our extensive suite of data and predictive analytics tools. Our Information Systems team has developed over 140 desktop and mobile applications in-house, a number of which help support our EMS and environmental performance, including:
These applications drive transparency throughout the organization by:
In 2021, we introduced two new emissions management applications, iSenseSM, our proprietary continuous methane monitoring system, and iEnergy, which helps EOG improve our data-driven planning and identification of operational GHG emissions reduction opportunities. These new applications expand the portfolio of proprietary information technology applications we use to identify and implement emissions reduction opportunities and to help manage and improve our environmental performance. Other environmental management applications include TridentSM, which helps manage our water resources in real time, and iDetectSM, our automated leak detection software.
To support our emissions reduction efforts, we continue to seek ways to better understand, measure, and manage emissions. In 2021, EOG launched a new data visualization tool to help track, anticipate, and manage our operational GHG emissions performance and support our emissions reduction efforts. The application, which we call iEnergy, provides greater visibility on operational GHG emissions at the facility level for our operations. This data helps us evaluate and monitor emissions performance across our U.S. operating areas on a daily basis and enhances data- driven planning and identification of potential areas for improvement.
Launching iEnergy also helps to drive transparency and informed decision-making throughout the company. For example, operational employees can use this data to identify potential areas for improvement in order to contribute to our emissions reduction efforts.
As a data-focused company, we believe that increasing the accuracy and transparency of emissions data across the company will help us continue to support our GHG emissions reduction efforts and drive further improvements across our company.
Employees power EOG’s tradition of volunteerism by donating their time to a wide range of charitable and community organizations. The company supports this culture of volunteering by providing employees with eight hours of paid volunteer time annually. This allows employees the flexibility to volunteer their time to support community causes that are meaningful to them. Additionally, members of our executive team sponsor, organize, and participate in volunteer activities that allow our employees to come together with purpose to support community needs.
Our corporate Energize You wellness program recognizes and encourages volunteerism as an important contributor to overall well-being. Participating in volunteer activities is one of the ways
that employees can earn points toward quarterly incentives. In 2021, the wellness program further promoted volunteerism through the Community Engagement Challenge, a competition among EOG divisions to have the highest percentage of employees using volunteer hours for community service activities. It resulted in more than 45 community service activities across our operating areas. Despite the ongoing pandemic, EOG employees found ways to safely donate their time and efforts to a broad range of community projects.
The oil and gas industry continues to be transformed by advances in technology and innovation that focus on lowering costs, increasing efficiency, and reducing its environmental footprint. STEM education has been key in this transformation and will help create the next generation of energy professionals.
EOG invests time and financial contributions in initiatives that increase access to STEM education across the communities where we live and work.
We strive to help students foster an interest in science, technology, engineering, and math and raise awareness of energy-related STEM careers. EOG supports a range of STEM programming that reaches students from elementary school through the college and university levels. At the elementary, middle, and high school levels, we often partner with a nonprofit or industry organization that promotes early access to STEM learning and exposure to STEM-related careers. Our support also includes financial contributions to schools and organizations as well as engaging with students and educators directly through tours and workshops.
Our relationship with Texas A&M International University (TAMIU) is a recent example of our STEM support. TAMIU welcomed the first class of students into its new petroleum engineering degree program in fall 2021, an important step in a multiyear initiative to create access to a petroleum engineering degree in the Laredo, Texas community.
EOG is proud to be among the industry partners to assist TAMIU financially with the launch of its new Bachelor of Science degree. Establishing a new degree program takes time and commitment; EOG made our first donation to TAMIU in 2013. In 2021, we continued our support for the university’s petroleum engineering students by creating an endowed scholarship. Full-time undergraduate petroleum engineering students who maintain a minimum GPA and meet the federal guidelines for a financially disadvantaged student are eligible for the scholarship.
EOG donated funds to help the Cal Ripken, Sr. Foundation build STEM centers that will give elementary school students in southeast New Mexico opportunities to participate in STEM activities. STEM centers will provide hands-on learning activities and access to learning tools that support STEM education.
EOG hosted a group of elementary school teachers for a drilling rig tour through Wyoming Agriculture in the Classroom. The nonprofit develops STEM and natural-resource-related curricula for elementary school students and offers teachers training and support to bring the curriculum into their classrooms.
EOG volunteered with the OERB to educate students and teachers on the oil and gas industry and STEM activities in the classroom. At a STEM summer camp, middle school students learned about oil and gas careers, geology, and safety. Another presentation took place at an energy education workshop for K–12 educators and covered bringing interactive STEM activities into the classroom.
EOG is unique in our ability to leverage our culture and operating structure to get incrementally better every year. Our decentralized model fosters innovation across operating areas and compounds the impact of innovation by taking ideas born in one operating area and expanding them across multiple basins and across multiple functions — from innovative completion techniques and drilling motor designs to improved procurement practices like self-sourced sand to information-technology-driven solutions to reduce emissions.
Executive leadership works to empower every employee as a decision-maker, idea generator, and critical contributor to EOG’s performance and success. This empowerment is further bolstered by giving employees access to real-time performance data across a wide range of operational and financial functions with more than 140 proprietary applications developed in-house through cross-functional collaboration.
Once improvement ideas have been identified locally, we foster collaborative, multidisciplinary teams across each of our operating areas to innovate, test, and share new technologies and practices to improve performance across everything we do. Examples of our communication and collaboration forums include the following:
Technical conferences bring employees from across our operating areas who work in the same discipline together to present and discuss ideas. Annual technical conferences are held for nearly every discipline across our operations (e.g., Drilling, Exploration) and support functions (e.g., Safety and Environmental, Accounting).
Division reviews are hosted by each EOG operating area multiple times a year to share performance as well as new innovations and to collect input from executive management. Executive management engages in daylong reviews of each operating and support discipline.
Specialized functional teams, such as our Sustainable Power Group (SPG), strategic water resources team, and Safety and Environment Group, share expertise and learnings from across the company on topics including emissions reduction, water management, and environmental and safety performance.
The EOG Technology Center provides a venue that functions as an innovation laboratory to test ideas and technological advancements for improved operational performance, including emissions reductions and produced water spill management.
The validity of our approach can be seen in the results from everyday operational practices to large projects. Closed Loop Gas Capture (CLGC) is one such success story. This technology provides an alternative to the flaring that can result from downstream market interruptions. While the idea was initiated by employees operating in the Delaware Basin, the innovative solution has since been shared across the company. Other operating areas are conducting pilot projects to understand its localized application. We have also supported regulatory adoption of CLGC, which has led to a successful partnership with the government of New Mexico for the approval of this technology.
In another example, we established the SPG to support emissions performance efforts. The SPG provides centralized communication and coordination to maximize contributions from across the organization. The group brings together employees who understand the unique features of each of our operational areas and have strong working relationships with their colleagues across disciplines and areas. Building on this knowledge and rapport, they test technologies in the field, utilize the EOG Technology Center, and then share results with the goal of scaling successful emission management solutions.