US Shale Producer SM Energy Sets New Environmental Targets, Zero Routine Flaring

Hart Energy Staff
Mon, December 20, 2021

SM Energy Co. on Dec. 20 set new emissions reduction targets and unveiled plans to eliminate routine flaring by 2023.

The new environmental targets set by SM Energy, whose operations are focused in the Permian Basin and Eagle Ford shale plays, were largely driven by the company’s shareholders, according to President and CEO Herb Vogel.

“Feedback from our stakeholders has emphasized the importance of proper stewardship by the upstream sector, particularly in the important areas of flaring, and methane and GHG (greenhouse-gas) emissions,” Vogel commented in a company release on Dec. 20.

SM Energy announced the following targets in the release:

Zero routine flaring at all SM Energy operations and non-routine flaring not to exceed 1% of natural gas production, each by 2023 based on the full-year average;

BUT NO SCOPE 3

A 50% reduction in Scope 1 and 2 GHG emissions intensity by 2030 with 2019 as the base year; and

Maintaining its already very low methane emissions intensity at the company’s 2020 level of 0.04 (metric tonnes CH4/Mboe) or better going forward.

(Source: SM Energy December 2021 Investor Presentation)

“Our environmental strategy incorporates a number of actions, many of which are already underway,” Vogel added, “and which provide a pathway to the achievement of these targets, positioning SM Energy as a leader in environmental performance.”

At present, SM Energy’s investment portfolio is focused in five counties in the state of Texas, specifically the Midland Basin in West Texas and the Maverick Basin in South Texas, according to the company website.