Pioneer Natural CEO calls on investors to divest in companies with high flaring
The chief executive of Pioneer Natural Resources, Scott Sheffield, on Thursday called on energy investors to sell shares or pull funding from companies that have rates of natural gas flaring.
If producers in the Permian Basin, the top U.S. shale field, cannot drop flaring rates below 2% of gas produced by the first half of next year, when new pipelines would have come online, Sheffield asked investors in public shares, bonds or private equity firms to "end up either not doing business or sell whatever you have in regard to that company."
The idea, Sheffield said during an earnings call, came out of a late January workshop in Austin, Texas, coordinated between Columbia University and the University of Texas at Austin, which brought together producers, pipeline companies, policymakers, non-governmental organizations, academics and analysts to talk about Permian Basin flaring. The workshop was invitation-only, but Columbia plans to release a report on it.