The ESG Agenda In The Oil And Gas Industry

Abstract

The Oil and Gas Industry (O&GI) has been a major contributor to global
economies for almost two hundred years. Further, in light of the fact that known
oil deposits are predicted to be depleted by 2052, the way in which this resource is
used and transitioned is essential. In the meantime, countries continue to expand
exploration with a view of discovering new reserves to extend the life-span of some
economies which are based on non-renewable energy sources. The close nexus
between the O&GI and the environment, society and economy is what prompted
the ESG Agenda to be established. This Agenda speaks to the environmental, social
and governmental (ESG) factors which are affected by an industry such as the
O&GI. It also seeks to create strategies that can protect the ESG Agenda against
the deleterious effects of the O&GI. The multi-focus perspective of the Agenda
reaffirms the interconnected nature of the extractive industry and the broader
context in which it operates. It is the focus of this paper to engage in an analysis of
the O&GI at a macro level to determine whether the industry adequately addresses
its impact on the ESG factors. Inherent in any discussion on the extractive industry
in 2024, is the relationship between that industry and climate change. It is in this
regard that attention will be paid to the factors of global boiling, resource depletion
and sustainable renewable energy sources as the ESG Agenda is analyzed.