Corporate Responsibility

Environmental Stewardship

Environmental responsibility is core to Hilcorp’s strategy as we continue to expand operations and the life of legacy assets.

Overview of Environmental Stewardship

As the world seeks affordable and reliable energy while reducing the amount of carbon emitted in the atmosphere, operators of late-life oil and gas assets play a vital role in meeting global demand. Late-life assets, known as legacy assets, are previously established facilities and wellsites that are nearing the end of their productive life, but can still provide decades more of production. In these late-life fields, the infrastructure has already been fully developed. We seek to maximize the societal benefit from these large, mature fields while reducing environmental impacts. Without effective management of these late-life assets, new facilities and wells would be needed. When wells or facilities have reached their end-of-life, Hilcorp responsibly decommissions these facilities and wellsites and restores the land. Our dedication to responsible and sustainable operations provides Hilcorp with a competitive advantage.

Emissions & Air

Hilcorp is committed to reducing emissions and expanding production across our operations. By driving down the emissions intensity of our production, we ensure that the maximum societal benefit is realized from the late-life assets we acquire. We have a demonstrated track record of achieving such improvements, as discussed below.

Leaders in Carbon Sequestration

Prior to the Federal Government expanding the 45Q tax credits to incentivize similar projects, our West Ranch CO2 Flood was the first project of its kind in the U.S. to capture a coal plant’s emissions and extract CO2 for commercial use.

  • To date, we have successfully sequestered over 3.7 million metric tons of CO2 at West Ranch Field using CO2 captured by the coal plant operator.
  • The CO2 capture potential is the equivalent of taking 350,000+ cars off the road.
  • Many of our late-life assets may have future CO2 sequestration potential and are being evaluated.


Identifying Sources and Monitoring

Hilcorp recently completed its largest and most comprehensive equipment inventory. This survey of tens of thousands of locations establishes a quality baseline for emissions reporting and reductions. Accurate inventory management combined with a robust monitoring program helps not only reduce EPA-calculated emissions estimates, but more importantly, actual emissions. Because each asset team possesses different variables that might affect actual emissions, we use a wide variety of technologies and methods for monitoring. We have a robust emissions monitoring program that exceeds national and state regulations in every state in which we operate.

  • In the San Juan Basin, Audio, Visual, and Olfactory (AVO) inspections on over 12,000 wells are performed on a weekly or monthly basis.
  • Dedicated personnel perform Optical Gas Imaging (OGI) to identify and fix leaks.
  • In 2023, Hilcorp completed over 20,000 OGI site surveys, using advanced FLIR technology.
  • Operators and Environmental Health and Safety personnel regularly complete facility inspections to ensure equipment is maintained and functioning properly.
  • Laser technology is deployed to survey sites and identify and repair leaks.
  • Aerial flights are performed by third party partners to detect and report identified leaks.


Pneumatics

Pneumatics are our largest source of reported methane emissions. Their elimination, or conversion to zero-bleed, is a priority in our journey to reduce methane emissions.

  • In 2022, we eliminated emissions on 14,000 pneumatic devices.
  • All high bleeds devices have been removed from service.
  • In San Juan, full basin coverage of our leak detection and repair (LDAR) program allows us to quickly identify and fix malfunctioning pneumatics.


Current Pilots Underway

By harnessing the collective power of over 3,400 employees, we have quickly moved to reduce emissions across our assets. Highlights of these efforts include:

  • Asset Teams are testing the viability of solar powered air compressors to replace natural gas with compressed air.
  • Natural gas-powered equipment is being replaced with electric equipment where electricity is readily available.
  • If pneumatics cannot be eliminated, we seek to route their discharge to an on-site compressor to offset fuel usage.
  • Ground and aerial monitoring methods are constantly tested and evaluated as possible solutions, including the most advanced imaging technologies, drones, and other technologies.


Meaningful Reductions

San Juan Basin

Hilcorp’s asset-level approach allows the individual asset teams to utilize the appropriate tools and methods that exist for each asset type. Because the San Juan Basin is a natural gas basin, pneumatics and combustion are drivers for both methane and CO2. The asset teams’ focus on inventory management and monitoring resulted in reductions in the number of pneumatics needed, the modernization of existing pneumatics toward no bleed, and the right-sizing of compression. These efforts have contributed to a 58% reduction in Greenhouse Gas Emissions (GHG) emissions in the basin, compared to a 2016 baseline prior to Hilcorp taking over operatorship.


Alaska North Slope

Hilcorp’s presence on Alaska’s North Slope includes assets acquired over time. For those North Slope assets operated by Hilcorp for at least four years, Greenhouse Gas Emissions (GHG) intensity has been reduced by 36% since 2016 driven by facility optimization. Combustion and the associated CO2 emissions remain a focus area.


Cook Inlet and Kenai (Alaska)

In Alaska’s Cook Inlet and Kenai Peninsula, Greenhouse Gas Emissions (GHG) emissions are down 34% and Greenhouse Gas Emissions (GHG) intensity is down 21%. A continued focus on reducing combustion through right-sizing and more efficient use is driving emissions down.


Reductions and Planned Reduction

Hilcorp is continually innovating and finding solutions to unique challenges facing legacy fields.

  • At Prudhoe Bay, Hilcorp will spend $10M on a pilot project to develop the potential to capture CO2 from the fuel gas stream—a project that could result in the capture of over 600,000 metric tons of CO2 per year
  • Hilcorp conducted a pilot study to verify the efficiency of solar powered heat trace pumps, and is currently in the process of aggressively replacing old pumps that previously vented to atmosphere
  • Hilcorp developed a prototype mechanical drain valve that is currently in operational testing.
  • Our tank Refresh Program resulted in the proactive testing of 1,400 tanks and taking proactive measures to potentially prevent future problems on nearly 1,300 tanks.
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Water

We are experts in the responsible development of resources while protecting waterways. Across all operations, we limit the use of fresh water. Hilcorp operates near or around water in the wetlands of Louisiana and in Alaska’s Cook Inlet and North Slope.

Across the country, Hilcorp is a member of organizations that provide us with response assets, training, exercise support, technical expertise, and assistance in managing regulatory compliance. All are certified by the U.S. Coast Guard to provide oil spill response personnel and equipment in support of Hilcorp’s operations. For example:

  • Cook Inlet Spill Response, Inc. and the Alaska Clean Seas, covers our southern and northern operating areas in Alaska, respectively.
  • The Clean Gulf Associates supports our Gulf Coast operations.
  • Our drilling operations utilize closed loop fluid systems, which allow drilling fluids to be recycled and minimize waste. As a result, we prevent impacts to the soil and groundwater.
Water

Wildlife

Wildlife

Wildlife exists in every area of operation for Hilcorp. It is our duty to preserve and protect the habitat and life cycle of any species we might encounter. Hilcorp partners with several governmental agencies and NGOs and provides financial, logistical, or other resources in support of more than 30 environmental studies.

Through these efforts, we have been able to better understand animal behaviors, migrations, and hibernation in order to protect biodiversity. Our commitment to responsible operations has safeguarded polar bears in Alaska, Whooping Crane along the Gulf Coast and Eagles nesting in New Mexico.

Polar Bear Monitoring

Hilcorp closely monitors polar bear activity surrounding our areas of operations in Alaska. Data from every sighting is collected and shared with the U.S. Fish and Wildlife Service (USFWS).
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