A Message from Dave Stover
Noble Energy is committed to finding and delivering affordable energy through oil and natural gas exploration and production while living our purpose – Energizing the World, Bettering People's Lives®. We strive to build trust through stakeholder engagement, acting on our values, providing a safe work place and respecting our environment.
Since our first sustainability report in 2011, we have continued to enhance our disclosures on environment and safety, people, communities and governance. We believe our ability to be welcomed in our host communities, recruit talented people, and deliver on our goals over the long run is enhanced by our commitment to operate responsibly, sustainably and compassionately.
Marking our 85th anniversary, 2017 was a transformative year for us. In our onshore portfolio, we sold our Marcellus Shale assets and acquired Clayton Williams Energy, a company with substantial assets in the Delaware Basin. This year, in our offshore portfolio, we divested our U.S. Gulf of Mexico assets.
As we position our portfolio to deliver long-term, sustainable shareholder value, we consider a number of strategic scenarios. We continually monitor, measure and analyze information concerning the ever-changing:
- Macro factors that influence energy supply and demand
- Cost competitiveness of various sources of energy supply
- Risks in the regions where we choose to operate
- Legal, regulatory and public policy factors
- Environmental and social standards
- Community factors that influence a wide variety of decisions
- Workforce patterns that affect our employee recruiting and retention
- Shareholder and stakeholder views
This analysis and other information are fed into our risk management process, our strategic planning activities and our commodity pricing scenarios that guide our capital allocation, portfolio development and strategy decisions. This report provides insight into elements that influence these scenarios and our strategic planning.
Core Sustainability Beliefs
We believe that oil and natural gas will continue to play a critical role in the world’s energy mix for decades to come, even as alternative energy sources become more readily available. Our belief takes into account, among other things, rising global populations, improving living standards, emerging market developments, technological advancements in all forms of energy development, cost competitiveness and reliability of energy sources, and political discourse and policy trends.
Our goal is to offer an attractive investment opportunity both within the energy industry and across all sectors. This requires financial along with environmental and social sustainability. Therefore, we:
- Maintain a diverse global portfolio and focus our operations on high-margin, high-return investment options
- Benefit from synergies created by our midstream business, which includes an integrated planning approach and a diversified marketing approach
- Manage our leverage to maintain financial flexibility through commodity cycles and pursue value creating opportunities to grow our business
As a large-cap company, we understand the growing importance of environmental, social and governance (ESG) performance to ensure we remain a leader within our industry, deliver shareholder value and meet the expectations of our stakeholders. We believe that effective stakeholder engagement means being able to demonstrate responsible operations, emissions and environmental footprint management.
Transparency and Partnership
Part of our commitment to environmental and social sustainability is our focus on governance and transparency. This is our seventh annual sustainability report, in which we disclose our environmental, social and governance performance, and align ourselves with well-established ESG disclosure standard-setters that align with our priorities.
We take pride in our sustainability accomplishments in 2017, including:
- A 45% decrease in Total Recordable Incident Rate year over year
- A 4% decrease in direct greenhouse gas emissions while expanding our operations
- Methane emission reductions of more than 2 billion cubic feet
- Increased hazard awareness and reporting through our Global Event Management System
- 4th place ranking in the Disclosing the Facts scorecard (out of 28 U.S. onshore exploration and production companies)
I encourage you to read more about our sustainability investments and performance in the pages that follow. Also, please share with us your comments and insights as we learn from you – our employees, partners, and stakeholders. Thank you for your continued interest in Noble Energy.
David L. Stover
Chairman, President and Chief Executive Officer