Corporate Responsibility
Corporate Responsibility Overview
Global energy demand will continue to increase as standards of living and quality of life improve around the world. Renewable energy supply will increase dramatically over the coming decades to help meet this demand while oil and gas demand will plateau and eventually enter a long, slow decline. As demand for oil and gas plateaus and ultimately declines, the ability to effectively manage this existing capacity will become critically important to ensure that the energy transition occurs in an orderly manner and consumers have access to affordable, reliable energy.
Hilcorp will play a vital role in the energy mix that will develop over the decades to come with the acquisition and efficient operation of late-life oil and gas properties. In many cases, these properties have experienced decreasing investment and declining production rates prior to our ownership. Hilcorp’s ability to reduce infrastructure, modernize and optimize equipment, reduce emissions, and increase production while safeguarding the environment is not only a sustainability strategy; it is our business model.
By the Numbers
Management Philosophy
Hilcorp focuses on maintaining a flat organizational structure and is committed to open book management principles which stress that every level of the company have access and understanding of key metrics, goals, and resources. No more than five levels of management exist at the company. Decisions and budget authority exist at the lowest operational level using an asset team model approach. The asset team is responsible for the operations, budget, goals, and environmental impact of its assets. Innovation and urgency come from an intimate understanding of the assets. The development of goals and objectives is a collective process encouraging every employee to challenge themselves to get better every day. Our open book management style gives employees the information and impetus to act.
Alignment
Alignment is an essential element of the “Hilcorp Magic” and gives clarity, focus, and inspiration to our employees to work together toward our common goals.
Employee compensation and incentives all center around the necessity of alignment on key objectives. Delivering on our agreed upon environmental and safety goals is core to those objectives.
Principles of an Effective Sustainability Program
At Hilcorp, we believe that an effective sustainability program should be driven by the most impactful metrics and guided by uniform, consistent reporting methodologies (e.g. Sustainability Accounting Standards Board (SASB) or similar). A sustainability program is successful when:
- Thoughtful and ambitious targets are understood and owned by every employee of the company.
- There is a reduction of emissions, spills, and other environmental impacts.
- End-of-life assets are responsibly decommissioned and restored to reduce environmental impact.
- Employees have a safe and inclusive work environment.
- There is meaningful engagement and partnership with the communities in which we operate.
- Employees are aligned with corporate goals to drive success.
Our Commitment in Action
Check out ways in which we continue to uphold our commitement to safe, responsible, and efficient development and operations.
