The management team of Active Iron Energy are committed to managing the balance between Environmental, Social, and Corporate Governance (ESG) and the demand for inexpensive and plentiful energy to improve people’s lives. 

While the world moves inexorably toward more renewable energy sources, it will be many decades before there is sufficient scale for renewable energy sources to substantially replace fossil fuels.

In the meantime, the world will depend on oil, gas, and coal to fuel economic growth and provide quality of life for people everywhere.

Within the oil and gas energy sector, it is important for management teams and investors to be aware of and to focus on development that optimizes production efficiencies, minimizes waste, and that complies with industry environmental standards. 

There is no other energy producing industry or country on the planet that respects ESG goals more than the domestic oil and gas producers.  Even the most optimistic projections of renewable growth demonstrate that oil and gas will still be the dominant energy source 40 years from now. 

It is our intent to preserve our environment and  produce hydrocarbons to improve people’s lives and grow the economy for the good of us all.

The following summarizes Active Iron Energy’s ESG Outlook

• Despite growing demand for cleaner energy, the overriding driver for non-OECD governments is providing cheap energy for their constituents and growing economies 

• With the additional production from US shale keeping commodity prices low, the energy consumption growth in the next decade from non-OECD economies will be more likely met by natural gas for power generation and liquid fuels for shipping in lieu of more expensive alternative sources

• Renewables will play a growing role in power generation and be implemented wherever electrification is possible, however there are large sectors of the economy which will continue to depend largely on hydrocarbons

• The industrial sector accounts for more than 50% of end-use energy consumption and oil and gas maintain the dominant supply position due to their high energy content and no current viable substitute as feedstock in manufacturing

• The transportation sector accounts for an additional 25% of energy demand and is almost entirely depended on hydrocarbon liquids for the foreseeable future

• The electrification trend will continue to grow and a transition from coal to the cleaner natural gas in OECD countries will bolster demand

• Improvements in efficiency across all sectors as well as processes to mitigate greenhouse gas emissions and environmental degradation will be implemented on a large scale, however reliance on hydrocarbons will not change only how we use them

• In light of public perception with increased focus on environmental and social considerations, institutional investors have already limited M&A activity in the oil and gas sector, depressing equity and asset valuations