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Devon (DVN) Reveals Latest Plan, Targets Zero GHG Emission

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Devon Energy Corporation (DVN - Free Report) announced plans to lower greenhouse gas emission (“GHG”) from the production process and substantially reduce freshwater usage for completion activities. Devon will utilize advanced technologies to improve efficiencies across the business, which in turn will assist it in reducing scopes 1 and 2 GHG emissions intensity by 50% by 2030. The company also aims to achieve net zero GHG emission for Scopes 1 and 2 by 2050.

Devon, through its extensive plan, will be able to lower direct emissions from owned or controlled sources and indirect emissions stemming from the generation of purchased energy. The company will also lower methane emission by 65% and eliminate routine flaring by 2030. Moreover, it will aim to use 90% or more non-freshwater for completions activities and minimize freshwater usage.

Oil and Gas Operators to Cut Emissions

Per International Energy Agency (“IEA”) report, to reach net-zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion. The IEA also states that a complete transformation is essential in the global energy system, with focus on clean energy sources and renewables, to achieve net-zero emission by 2050.

Devon is not the only operator in the oil and gas space that it working toward cutting emission from the production process. Other oil and gas behemoths like BP Plc (BP - Free Report) , TotalEnergies SE (TTE - Free Report) and Royal Dutch Shell (RDS.A - Free Report) have already announced plans to attain net-zero emission by 2050. Apart from implementing emission control measures, all these companies have decided to make fresh investments in non oil and gas businesses, which will assist them in the reduction of emissions.

Oil and gas majors are investing millions of dollars in the adoption of new technologies that will assist them in emission reduction. New methods of carbon capture, reduction in gas flaring, and detection of leaks and repairs are noteworthy in this regard.

Zacks Rank

Devon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance

Devon’s shares have outperformed the industry’s growth in the past six months.

Zacks Investment ResearchImage Source: Zacks Investment Research

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