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The green trend: TC Energy pledges to be carbon-free by 2050

To achieve carbon neutrality from operations, TC Energy Corporation announced its environmental, social, and governance (ESG) goals, as well as emission reduction strategies.

Currently, this Calgary-based Canadian company is a leading midstream energy services provider among those focused on natural gas. Yet, aside from pipeline maintenance and power generation, the company also distributes and stores natural gas.

Over the past six months, TC Energy's stock has outperformed the industry average with almost a 3 point lead: gaining 11.3% versus 8.6%.

Due to the global industry moving towards green energy, an increasing number of investors and environmental groups are pushing the company to become 100% emission-free by 2050. In addition, these pressures align with the plans of Canada's prime minister, Justin Trudeau, which envisions a relatively quick transition for the country from carbon to renewable energy sources.

Thus, it came as no surprise when TC Energy announced that it would target this goal alongside them, as well as hope to cut greenhouse-gas emissions intensity from its operations by 30% by 2030.

Five major areas will be targeted by the company to reduce the intensity of its emissions. By acquiring low-carbon energy sources and investing in low-carbon energy, TC Energy will reduce its carbon emissions. It also plans to use carbon credits and offsets. Aside from this, the company also plans to improve efficiencies in its operations with some additional automation of the linear processes. It will help manage emissions, reduce methane leaks and flaring from normal operations.

The carbon dioxide, methane, and nitrogen oxide emissions that TC Energy targets pertain to Scope 1 and 2. The company's natural gas pipeline assets generate these emissions primarily from fuel combustion. It is commendable, that as an interim measure to reach net-zero emissions, TC Energy also commits to reducing Scope 3 emissions.

Additionally, a partnership between TC Energy and Nikola Corporation NKLA was announced in early October in order to build hydrogen production facilities in the U.S. and Canada, as part of each company's sustainability initiatives. Hydrogen is particularly important when it comes to carbon neutrality.

But TC Energy is not alone in this process. Investors' demands to reduce emissions have pushed a lot of industry's top players to set targets to increase renewable capacity and improve efficiency. And in order to clean up the environment, energy companies invested billions of dollars in renewable energy.

Pipeline operator Enbridge Inc. is a prime example of such a trend. Last year the company set emissions reduction targets, hoping to be a net-zero emitter of greenhouse gases by 2050 as well. In the future, we anticipate that there will be a significant increase in pledges like this one. But whether or not they will be fruitful still remains to be seen.

Watch how you can use Rextag to identify ESG improvement opportunities in our latest webinar here: https://youtu.be/XBa_MbL0FME

If you are interested in learning more about the industry's journey to sustainability, as well as how it may impact your local businesses, please, connect with our Houston sales office to see our intelligence for yourself.

Tel. +1 713-203-3128

Email: treitmeier@hartenergy.com

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Ain't Nothing Like a $2 Billion Deal: Oasis Sells Midstream Affiliate to Crestwood

Crestwood & Oasis Midstream merge to create a top Williston #basin player. $1.8 billion deal is expected to close during the Q1 of 2022. The transaction will result in a 21.7% ownership stake for Oasis in Crestwood common units. The remaining ownership of Oasis in Crestwood will also be of benefit to the company since it will create a diversified midstream operator with a strong balance sheet and a bullish outlook after this accretive merger.

TC Energy splurged $0.8 billion on the project that targets emissions. Well, sorta. According to the idea, existing lines of the ANR Pipeline Company will be expanded to serve markets in the #Midwestern US and simultaneously updated to reduce discharge by 30,000 metric tons CO2e per year - equivalent to removing almost 7000 cars from the road annually. Remarkable goals. With the current timeline, the project will be fully operational by the end of 2025, thanks to long-term transportation agreements secured by ANR.

Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.

The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.

No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.

2022 blog posts