Some investors have seized upon flaring, which generates greenhouse gas carbon dioxide, as a measure of environmental performance.
“It is the number one ESG (environmental, social and governance) thing they need to be focused on,” said Rob Thummel, portfolio manager at energy investors Tortoise Capital. “They can choose or not to flare ultimately.” Exxon, along with BP, Shell and Chevron, said in September it would minimize flaring, which exacerbates climate change by releasing carbon dioxide into the atmosphere. BP, which bought BHP Billiton’s assets in 2018 and said it has been trying to reduce flaring, burned 13.5% of its natural gas in the Permian last year.