CDP CDP 2017 Climate Change 2017 Information Request
Noble Energy, Inc.
Module: Introduction
Page: Introduction
CC0.1
Introduction
Please give a general description and introduction to your organization. Noble Energy, Inc. (“Noble Energy” or “Company”) is a leading independent energy company engaged in worldwide oil and natural gas exploration and production. Founded by Lloyd Noble in 1932, Noble Energy, a Delaware corporation, has been publicly traded on the New York Stock Exchange (NYSE) since 1980 under the ticker symbol NBL. Noble Energy has seven main operating areas: the Denver-Julesburg (DJ) Basin (onshore U.S.), the Marcellus Shale (onshore U.S.), the Permian Basin (onshore U.S.), the Eagle Ford Shale (onshore U.S.), the deepwater Gulf of Mexico (offshore U.S.), offshore West Africa, and offshore Eastern Mediterranean (Noble Energy divested its Marcellus Shale assets in 2017. Proved reserves are geographically balanced amongst the international and domestic operations, with 1,437 million barrels of oil equivalent (BOE) proved at the end of 2016. In 2016, sales volumes from continuing operations totaled 301 thousand BOE per day. This report only includes operations under Noble Energy and excludes operations under Noble Midstream Partners LP. Visit Noble Energy online at www.nblenergy.com .
CC0.2
Reporting Year
Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).
Enter Periods that will be disclosed
Fri 01 Jan 2016 - Sat 31 Dec 2016
CC0.3
Country list configuration
Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.
Select country
United States of America
Equatorial Guinea
Israel
Falkland Islands
CC0.4
Currency selection
Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)
CC0.6
Modules
As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.
Further Information
Module: Management
Page: CC1. Governance
CC1.1
Where is the highest level of direct responsibility for climate change within your organization?
Board or individual/sub-set of the Board or other committee appointed by the Board
CC1.1a
Please identify the position of the individual or name of the committee with this responsibility
i) For reporting period 2016, Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation ii) The Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation at Noble Energy has the highest level of direct oversight for climate change within the organization for reporting period 2016. This individual provides periodic updates to the Board of Directors as frequently as quarterly. This process ensures responsibility and awareness for carbon management goes all the way up to the Chief Executive Officer (CEO) and Board of Directors.
CC1.2
Do you provide incentives for the management of climate change issues, including the attainment of targets?
Yes
CC1.2a
Please provide further details on the incentives provided for the management of climate change issues
Who is entitled to benefit from
these incentives?
The type of incentives
Incentivized performance
indicator
Comment
All employees Monetary reward
Emissions reduction project Efficiency project
Noble Energy’s EHSR department, partnering with Business Units in some cases, sets internal goals for specific projects, such as achieving greater emissions reduction and efficiency in operations. Evaluation of attaining these goals are considered in an overall company-wide EHSR factor that contributes to the calculation of the annual bonus compensation for all employees.
Further Information
Page: CC2. Strategy
CC2.1
Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities
Integrated into multi-disciplinary company wide risk management processes
CC2.1a
Please provide further details on your risk management procedures with regard to climate change risks and opportunities
Frequency
of monitoring
To whom are results
reported?
Geographical
areas considered
How far into
the future are risks
considered?
Comment
Annually
Board or individual/sub-set of the Board or committee appointed by the Board
Global > 6 years
Noble Energy is actively monitoring and anticipating climate change risks affecting its operations, including but not limited to, the impact of new legislation and regulations, application of international accords and the indirect consequences of regulation or business trends. For example, in 2015 Noble Energy provided comments to the EPA on New Source Performance Standards (40 CFR 60 Subparts OOOO/OOOOa) which set GHG emission standards in the form of methane emission limitations.
CC2.1b
Please describe how your risk and opportunity identification processes are applied at both company and asset level
Noble Energy is subject to many significant risks, including operational, strategic, financial, and compliance/regulatory risks. Noble Energy strives to maintain a proactive enterprise risk management process to plan, organize and control activities in a manner intended to minimize the effects of risk on capital, cash flows and earnings. The EHSR department plays a key role in the risk management process, with the influence and help of higher level executives and Business Unit Managers. The Company’s process includes risk analysis associated with accidental losses, as well as financial, strategic, operational, regulatory, political, and others including risks related to climate change and GHG emissions. Noble Energy’s risk management process is designed to integrate with long-range plans, and is supportive of capital structure planning. Elements include, among others, cash flow at risk analysis, credit risk management, a commodity hedging program to reduce the impacts of commodity price volatility, an insurance program to protect against disruptions in our cash flows, a robust global compliance program, and government and community relations initiatives. The Company benchmarks its program against peers and other global organizations. At the asset level, risks are assessed and identified at Noble Energy sites. During the site feasibility stage, Noble Energy’s planning group identifies risks and mitigation opportunities that are specific to an asset or location. If well sites are close to developments and/or populous areas, risks specific to that location are identified and mitigation options are assessed, including whether to develop the site in that specific location. Asset and company level risk management work together to provide platforms to share lessons learned and gained knowledge across other Noble Energy assets.
CC2.1c
How do you prioritize the risks and opportunities identified?
Noble Energy’s EHSR Department performs a risk assessment twice a year in conjunction with the Business Units to identify and prioritize risks. These assessments role up to the Company’s Enterprise Risk Management process and are consistent with corporate goals. Opportunities related to climate change are prioritized by the feasibility of the opportunity being implemented within Noble Energy’s operations. Next, the Company evaluates whether a positive change can occur through implementation of the opportunity, such as an environmental or economic benefit and an acceptable period for return on investment.
CC2.1d
Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future
Main reason for not having a process
Do you plan to introduce a process?
Comment
CC2.2
Is climate change integrated into your business strategy?
Yes
CC2.2a
Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process
i) Internal processes for collection/reporting information: For the 2016 reporting period, the Executive Vice President, Exploration, New Ventures, Frontier, EHSR and Business Innovation at Noble Energy provides periodic updates to the Board of Directors as frequently as quarterly. This process ensures responsibility and awareness for carbon management goes all the way up to the Chief Executive Officer (CEO) and Board of Directors. Data is collected at the field level by field personnel or environmental representatives. The environmental representatives are also responsible for reporting information to mandatory programs, such as the U.S. EPA’s mandatory GHG program, and voluntary programs such as the Carbon Disclosure Project and Noble Energy’s Sustainability Report. Relevant
information is then communicated to management for inclusion, as appropriate, in executive management discussions. ii) Aspects of climate change that influence the strategy: Noble Energy’s business strategy is influenced by applicable climate change-related regulations and its commitment to environmental stewardship and social responsibility. As part of Noble Energy’s risk management process, the Company monitors proposed and approved climate change regulations, such as the GHGRP and New Source Performance Standard OOOOa. Regulatory changes influence Noble Energy’s operations strategy because of compliance with existing rules and the potential of the impact of compliance with future regulations. Noble Energy’s approach to GHG management is to continually improve its methods to accurately calculate and reduce GHGs through business practices and emission reduction projects. iii) Short-term strategy: As part of the commitment to responsible operations and social responsibility, reducing GHG emissions is one of Noble Energy’s priorities. The Company’s GHG emissions reduction strategy includes maintaining an accurate emissions database, implementing operational enhancements, recovering or re-injecting natural gas that would otherwise be flared, proactively maintaining equipment, and reducing truck traffic. iv) Long-term strategy: Noble Energy’s long-term strategy is focused on identifying opportunities to increase operational efficiency and recovering otherwise wasted natural gas. The Company has shifted from individual vertical well sites to multi-well pads and horizontal drilling. This planning approach decreases emissions per production volume and reduces truck mileage and related emissions. Gas recovery efforts are increasing by greater use of vapor recovery units and leak detection and repair inspections. v) Strategic advantage: Working with governmental agencies to craft new GHG reduction legislation utilizing emissions reduction technology, Noble Energy obtains a competitive advantage on complying with new regulations since the Company is a) already implementing the technology and b) helped design the regulation. vi) Substantial business decisions made: In 2016, no substantial business decisions related to climate change were made pertaining to Noble Energy’s business strategy.
CC2.2b
Please explain why climate change is not integrated into your business strategy
CC2.2c
Does your company use an internal price on carbon?
No, and we currently don't anticipate doing so in the next 2 years
CC2.2d
Please provide details and examples of how your company uses an internal price on carbon
CC2.3
Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)
Direct engagement with policy makers Trade associations
CC2.3a
On what issues have you been engaging directly with policy makers?
Focus of legislation
Corporate Position
Details of engagement
Proposed legislative solution
Regulation of methane emissions
Support with minor exceptions
In 2015 Noble Energy submitted comments to the EPA on amendments to the New Source Performance Standards (40 CFR 60 Subparts OOOO/OOOOa) Amendments to the rule set GHG emission standards in the form of methane emission limitations. Noble Energy submitted comments to provide industry input and address potential concerns.
The new regulatory action, which was finalized in May 2016, sets a fixed schedule for monitoring leaks, typically done by optical gas imaging technology. It also phases in requirements for using the "green completion" process for hydraulically fractured oil wells. However in mid-June of 2017 the EPA has proposed a 2-year stay for the rule. This is on top of a 90 day stay finalized in early June 2017.
CC2.3b
Are you on the Board of any trade associations or provide funding beyond membership?
Yes
CC2.3c
Please enter the details of those trade associations that are likely to take a position on climate change legislation
Trade association
Is your position on climate change consistent with theirs?
Please explain the trade association's position
How have you, or are you attempting to, influence the position?
CC2.3d
Do you publicly disclose a list of all the research organizations that you fund?
CC2.3e
Please provide details of the other engagement activities that you undertake
CC2.3f
What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?
Noble Energy’s process for tracking current and proposed climate change legislation and regulation is achieved through functions of two internal groups at the company: the Regulatory Policy group (a component of the EHSR Department) and the Government Relations group (a component of Noble Energy's Corporate Affairs Department). The Government Relations group, with input from the Regulatory Policy group, works to coordinate messaging and activities with various non-governmental organizations (NGOs), the public, trade associations and advocate with legislators or regulators where appropriate. The Regulatory Policy group manages the internal strategy and development of internal corporate environmental and regulatory policy. This internal policy development focuses on the Company’s global and domestic regional interests, and works with the various asset groups and their EHSR support functions to ensure that a company-wide perspective is used as we set standards when appropriate. Additionally, the Regulatory Policy group tracks developing regulation and sometimes legislation as it relates to environmental policy, which includes issues related to climate change. To ensure consistency of this process with Noble Energy’s climate change/greenhouse gas emissions strategy, regular meetings are held with EHSR regional support functions and business units and leadership as appropriate. The Company also participates actively in trade associations that follow environmental policy for the energy industry, including climate change related issues.
CC2.3g
Please explain why you do not engage with policy makers
Further Information
Page: CC3. Targets and Initiatives
CC3.1
Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?
No
CC3.1a
Please provide details of your absolute target
ID
Scope
% of emissions in
scope
% reduction from base year
Base year
Base year emissions covered by
target (metric tonnes CO2e)
Target year
Is this a science-
based target?
Comment
CC3.1b
Please provide details of your intensity target
ID
Scope
% of emissions in
scope
% reduction from base
year
Metric
Base year
Normalized base year emissions covered by
target
Target year
Is this a science-based target?
Comment
CC3.1c
Please also indicate what change in absolute emissions this intensity target reflects
ID
Direction of change anticipated in absolute Scope 1+2 emissions at
target completion?
% change anticipated in absolute Scope 1+2
emissions
Direction of change anticipated in absolute Scope 3 emissions at target
completion?
% change anticipated in absolute Scope 3
emissions
Comment
CC3.1d
Please provide details of your renewable energy consumption and/or production target
ID
Energy types
covered by target
Base year
Base year energy for energy type covered
(MWh)
% renewable
energy in base year
Target year
% renewable
energy in target year
Comment
CC3.1e
For all of your targets, please provide details on the progress made in the reporting year
ID
% complete (time)
% complete (emissions or renewable energy)
Comment
CC3.1f
Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years
Noble Energy does not currently have a forecast for specific emissions reductions for the next five years. Due to Noble Energy's ongoing divestitures and acquisitions it is difficult to forecast aggregate emissions because the properties are sold and purchased in discrete packages. Continual improvement of data gathering and calculation methodologies also make it difficult to predict the impact on emissions. Because of this, the Company does not currently have a specific emissions reduction target; however, we believe emissions will likely increase due to projected growth in the DJ Basin and Texas assets.
CC3.2
Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?
Yes
CC3.2a
Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions
Level of
aggregation
Description of product/Group of products
Are you
reporting low carbon
product/s or avoided
emissions?
Taxonomy, project or methodology used to classify product/s as
low carbon or to calculate avoided
emissions
%
revenue from low carbon
product/s in the
reporting year
% R&D in
low carbon
product/s in the
reporting year
Comment
Company-wide
As a producer of natural gas, Noble Energy increases the ability for end users to substitute higher GHG fossil fuels with cleaner-burning fuels. In addition to being cleaner sources of energy, compressed natural gas (CNG) and liquefied natural gas (LNG) produced by Noble Energy are affordable, domestic alternatives to imported oil. CNG and LNG can be used as fuels for road vehicles and other oil field applications, as well as for marine and railway transport. In 2013, Noble Energy committed $5 million over five years to Weld County school districts to support the conversion and purchase of new CNG school buses. This project helps the school districts replace aging buses, reduces emissions and expands the market for CNG produced by Noble Energy in the region. By the end of 2016 there were 38 CNG school buses operating, with 9 more ordered and set to be delivered in 2017/2018. The CNG school buses emit approximately 23% less GHG than diesel. Each CNG school bus reduces GHG emissions by approximately 4.78 metric tons CO2e per year.
Avoided emissions
Other: Emission factor differences of combusting natural gas compared to diesel fuel
CC3.3
Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)
Yes
CC3.3a
Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings
Stage of development
Number of projects
Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)
Under investigation 1
To be implemented*
Implementation commenced*
Implemented* 2 778125
Not to be implemented
CC3.3b
For those initiatives implemented in the reporting year, please provide details in the table below
Activity type
Description of activity
Estimated annual CO2e
savings (metric tonnes CO2e)
Scope
Voluntary/ Mandatory
Annual monetary savings
(unit currency -
as specified in CC0.4)
Investment required
(unit currency -
as specified in
CC0.4)
Payback period
Estimated lifetime of
the initiative
Comment
Process emissions reductions
Noble Energy installs Vapor Recovery Units (VRUs) at many of its newly constructed well pad facilities in the United States. VRUs are commonly used to capture fumes for further use, while reducing flaring and volatile organic compound (VOC) emissions. The Company has invested
707034 Scope 1
Mandatory
7306568 32425000 4-10 years
>30 years
Activity type
Description of activity
Estimated annual CO2e
savings (metric tonnes CO2e)
Scope
Voluntary/ Mandatory
Annual monetary savings
(unit currency -
as specified in CC0.4)
Investment required
(unit currency -
as specified in
CC0.4)
Payback period
Estimated lifetime of
the initiative
Comment
millions of dollars to install more than 200 VRUs in its US Onshore operations. Noble Energy continues to optimize its vapor recovery program to capture oil tank vapors and, with new designs in forward development areas, will exceed the regulatory requirement to reduce VOCs by 90 percent from tank batteries in Colorado. The lifetime of this project is expected to be as long as Noble Energy has operations in this area.
Fugitive emissions reductions
Proactively identifying maintenance opportunities can help reduce air emissions and costs, while increasing the quantity of natural gas available for sale. Noble Energy has a team of individuals that monitor work sites with infrared cameras to detect natural gas leaks (Scope 1 emissions) that cannot be seen with the naked eye. Most of the inspections are mandatory in the DJ Basin and Marcellus, but a small percentage are voluntary only in the Marcellus. With dedicated staff assigned to the program, the Company found and fixed approximately 8,000 leaks in 2016.
71091 Scope 1
Mandatory
511963 1324000 1-3 years
>30 years
CC3.3c
What methods do you use to drive investment in emissions reduction activities?
Method
Comment
Compliance with regulatory requirements/standards
By complying with regulatory requirements, costly fines are avoided and operations are altered to be more efficient, thereby increasing production and revenue.
Employee engagement
Noble Energy has an environmental engineering group dedicated to implementing emission reduction activities and exploring new opportunities. The group works to reduce emissions at the corporate and field level to maximize the potential of the reduction activities. The group actively engages with field personnel to seek recommendations on possible emission reduction initiatives.
Partnering with governments on technology development
Noble Energy committed $5 million over five years to Weld County school districts to support the conversion and purchase of new CNG-fueled school buses. This project not only helps local school districts replace aging buses, it also helps the region expand the market for CNG. By the end of 2016 there were 38 CNG school buses operating, with 9 more ordered and set to be delivered in 2017/2018. The lower cost of CNG saves the districts an average of $3,500 per bus each year. Throughout this commitment, the Company will work with local and federal agencies to secure matching funds to convert as many buses as possible as well as support infrastructure development to enhance the ability of natural gas cars, trucks and vehicle fleets to grow in Colorado. A new CNG school bus fueling and maintenance station was also opened as part of this investment. The new station was funded in part by a grant from the Colorado Department of Local Affairs, and it will be available for public use and will support the district’s fleet of buses donated by Noble Energy.
CC3.3d
If you do not have any emissions reduction initiatives, please explain why not
Further Information
Page: CC4. Communication
CC4.1
Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)
Publication
Status
Page/Section reference
Attach the document
Comment
In mainstream reports (including an integrated report) but have not used the CDSB Framework
Complete 51-52, 65-66 https://www.cdp.net/sites/2017/95/13395/Climate Change 2017/Shared Documents/Attachments/CC4.1/2016_Noble Energy_Annual_Report.pdf
Annual Report includes information from SEC filings.
In voluntary communications
Underway - previous year attached
5-7, 23 https://www.cdp.net/sites/2017/95/13395/Climate Change 2017/Shared Documents/Attachments/CC4.1/NobleEnergy_Sustainability_Report_2015.pdf
Further Information
Module: Risks and Opportunities
Page: CC5. Climate Change Risks
CC5.1
Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply
Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments
CC5.1a
Please describe your inherent risks that are driven by changes in regulation
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Air pollution limits
Commercial risk to Noble Energy lies in the uncertainty of government-imposed climate legislation. Under the authority of the Clean Air Act, the EPA has finalized a new rule that will regulate methane emissions. The BLM has also proposed methane rules for waste (venting/flaring) on public lands. There is also various activity at the state level. All of these regulations could create a significant amount of risk as the full cost of compliance will not be known for some time.
Increased operational cost
1 to 3 years
Direct Virtually certain
Medium
Non-compliance with federal and state regulations can result in financial penalties. For example, Colorado’s Regulation 7 includes up to a $15,000 per day non-compliance penalty for leaking equipment or smoking flares.
Noble Energy has created an environmental engineering group that maintains an annual GHG inventory and drives efficiency and emission reduction projects. Additionally, this team has developed software for tracking and calculating GHG emissions as part of compliance with regulations. Furthermore, we have implemented an IR camera project in our DJ Basin and Marcellus Shale operating areas to identify and repair methane leaks in regards to passed and proposed regulation. In 2016, Noble Energy had 15
The costs of managing these risks include monitoring regulatory requirements and developments, and the costs of equipment and/or operational changes needed to comply. These annual costs will occur indefinitely.
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
dedicated inspectors with infrared leak detection cameras that repaired leaks, saving over 71,000 metric tons of CO2e from entering the atmosphere.
Cap and trade schemes
The uncertainty of government-imposed climate legislation, including cap and trade schemes, poses a commercial risk to the exploration and production of fossil fuels. A regulation such as this may have an adverse impact on Noble Energy’s financial condition, operations and cash flows, and could reduce the demand for Noble Energy’s products.
Increased operational cost
3 to 6 years
Direct Unlikely Medium-high
Using a carbon price range from the U.S. EPA’s latest estimate of cost of carbon of $11 (5% discount rate) and $56 (2.5% discount rate) per metric tonne, and applying this to Noble Energy's Scope 1 emissions, could result in additional costs of $27M-$138M.
Noble Energy actively prepares to respond to current and proposed climate change legislation and expects that some combination of performance standards, taxes, tradable emissions credits and production limitations will become a reality in most areas where it operates in the U.S. To mitigate these risks, Noble Energy has created an environmental engineering group that maintains an
Noble Energy has a specific annual budget allocated for the management of GHG emissions. The budget in 2016 was approximately $520,000 to measure, monitor, calculate and report annual GHG emissions and these costs will occur indefinitely. The cost of meeting GHG requirements may have some impact on Noble Energy’s financial condition, results of operations and cash flows. In
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
annual GHG inventory and drives efficiency and emission reduction projects. For example, this team led an emissions reduction project to replace all high-bleed pneumatic devices with low-bleed pneumatic devices on all onshore locations in the U.S.
2016, Noble Energy has continued to report its GHG emissions for operations throughout the U.S. to the EPA in accordance with the GHGRP.
Emission reporting obligations
The uncertainty associated with government-imposed emission reporting obligations poses a commercial risk to the exploration and production of fossil fuels. An example includes the EPA GHGRP, to which Noble Energy has been working to comply.
Increased operational cost
Up to 1 year
Direct Virtually certain
Medium
The cost of meeting regulatory requirements may have an adverse impact on Noble Energy’s financial condition, operations and cash flows, and could reduce the demand for its products. There are also financial implications for non-compliance. For example,
To mitigate these risks, Noble Energy has created an environmental engineering group that maintains an annual GHG inventory and drives efficiency and emission reduction projects. A new software system, implemented in 2014, is used to more efficiently collect and manage GHG
Noble Energy has a specific annual budget allocated for the management of GHG emissions. The budget is approximately $520,000 to measure, monitor, calculate and report annual GHG emissions and these costs will occur indefinitely. The cost of meeting GHG requirements may have some impact
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
companies who do not report to the GHGRP could be fined up to $37,500 per day of non-compliance.
emissions. on Noble Energy’s financial condition, results of operations and cash flows. In 2016, Noble Energy has continued to report its GHG emissions for operations throughout the US to the EPA in accordance with the GHGRP.
CC5.1b
Please describe your inherent risks that are driven by changes in physical climate parameters
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Tropical cyclones (hurricanes and typhoons)
Physical risks are primarily related to extreme weather events, which may increase in
Reduction/disruption in production capacity
Unknown Direct Likely Medium-high
Extreme weather conditions increase the Company’s operating costs, and damages
Noble Energy has developed an Incident Management System (IMS) to facilitate the Company’s
Costs of the systems for managing this risk include the capital needed to develop and install the
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
intensity with rising global temperatures. Therefore, climate change may lead to increased storm or weather hazards affecting the Company’s operations, specifically offshore operations.
may not be fully insured. Any severe weather increase in areas of the Company’s operations could potentially impact its ability to conduct normal activities.
response to various natural disasters including hurricanes, tornadoes and other emergency situations. The Company plans to transition its emergency response planning to an All Hazard approach. This process will create a comprehensive preparedness, response and recovery architecture, using the National Fire Protection Administration (NFPA) 1600 – Standard on Disaster/ Emergency Management and Business Continuity Programs. Through this process, the Company will revise existing plans to conform
system and employee time. These costs will occur on an annual basis indefinitely.
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
to a common response model based on the premises of the Incident Command System (ICS). Noble Energy is also exploring increased meta-ocean design criteria to operate under harsher storm conditions.
Change in precipitation extremes and droughts
Physical risks, including floods, may be related to extreme weather events, which some research suggests may increase in intensity with rising global temperatures. Any severe weather increase in areas of the Company’s operations could potentially impact its ability
Inability to do business
Unknown Direct Unknown Medium-high
Extreme weather conditions increase the Company’s operating costs, and damages may not be fully insured. Potential increased meta-ocean design criteria to operate under harsher storm conditions could require more robust design of equipment. Additionally,
Noble Energy has developed an Incident Management System (IMS) to facilitate the Company’s response to various natural disasters including hurricanes, tornadoes and other emergency situations. The Company plans to transition its emergency response planning to an All Hazard approach. This process will
Costs of the systems for managing this risk include the capital needed to develop and install the system and employee time. These costs will occur on an annual basis indefinitely.
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
to conduct normal activities.
any severe weather increase in areas of the Company’s operations could potentially impact its ability to conduct normal activities, which could negatively affect revenue.
create a comprehensive preparedness, response and recovery architecture, using the National Fire Protection Administration (NFPA) 1600 – Standard on Disaster/ Emergency Management and Business Continuity Programs. Through this process, the Company will revise existing plans to conform to a common response model based on the premises of the Incident Command System (ICS).
CC5.1c
Please describe your inherent risks that are driven by changes in other climate-related developments
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management method
Cost of
management
Reputation
Within the oil and natural gas industry, the increase in shareholder resolutions related to climate change indicates there is an increasing awareness around climate change issues. There has also been an anti-hydraulic fracturing movement around the country, which poses reputational risk to the oil and natural gas industry. For example, communities have been voting on ballot measures to ban hydraulic fracturing in certain areas
Inability to do business
Up to 1 year
Direct Virtually certain
Medium-high
Noble Energy’s reputational risks associated with climate change could affect shareholder investments and the license to operate in various communities and areas.
These risks are mitigated by engaging a range of stakeholders and increasing Noble Energy’s brand awareness. Noble Energy has produced a number of materials to support this effort. The Company has also developed an ambassador program that has helped coach hundreds of employees on community outreach efforts. Additionally, the Company continues to become more involved in communities through sponsorships, advertising, etc. and maintain its efforts to be a responsible and involved corporate citizen. Noble Energy currently has radio and TV advertisements that discuss the importance of community and environmental responsibility.
Noble Energy has incurred costs associated with producing scientific and knowledge-based materials, such as pamphlets and commercials, to respond to the anti-fracking movement. These annual costs will occur indefinitely.
CC5.1d
Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC5.1e
Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC5.1f
Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Page: CC6. Climate Change Opportunities
CC6.1
Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply
Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments
CC6.1a
Please describe your inherent opportunities that are driven by changes in regulation
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
General environmental regulations, including planning
The burning of natural gas produces lower levels of GHG emissions than other readily available fossil fuels, such as oil and coal, and represents approximately 66% of the Company’s production portfolio. If all of Noble Energy’s customers were to be subject to
Increased demand for existing products/services
3 to 6 years
Direct More likely than not
Medium-high
Since natural gas is a cleaner-burning fuel alternative to other readily available fossil fuels, such as oil and coal, Noble Energy believes there are many opportunities for growth within the natural gas market that could positively affect revenue. In the last year, demand for natural gas has increased as power
Noble Energy is well-positioned for an increase in demand of natural gas. Should renewable resources, such as wind or solar power, become more prevalent, natural gas-fired electric plants may provide an alternative backup to maintain consistent energy
Costs for managing this opportunity are included as part of Noble Energy’s operating expenses budget. These annual costs will occur indefinitely.
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
regulations like the EPA Clean Power Plan in the United States, it could increase the demand for natural gas.
generation has been switching from coal to natural gas. According to the U.S. Energy Information Administration, the percentage of U.S. electricity being generated by coal fell from 33.2% to 30.4% from 2015 to 2016. While during that same time frame, natural gas generated electricity rose from 32.7% to 33.8%.
supply. We are taking action to increase the natural gas discoveries by Noble Energy to allow for GHG reduction through conversion of power plants from other fuels to natural gas. For example, Noble Energy is developing resources for Israel to switch from coal-fired to natural gas-fired electricity, creating a growing demand for its products.
Other regulatory drivers
New regulations aimed at reducing greenhouse gas emissions
Increased demand for existing products/services
3 to 6 years
Direct More likely than not
Medium-high
The opportunity exists in increased market demand that leads to increased
A critical barrier to converting vehicles to natural gas is the lack of
Costs for managing this opportunity are included as part of Noble
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
from the transportation sector are making natural gas a more attractive fuel choice and the market demand for natural gas may increase. Natural gas vehicles are cleaner than traditional gasoline or diesel vehicles, resulting in 20-30 percent less carbon dioxide emissions. This regulation could increase demand for natural gas, which makes up approximately 66% of Noble Energy's production portfolio.
revenue. From 2015 to 2016 the percentage of U.S. electricity generated from natural gas increased by 3.4% to a total of 33.8%, according to the U.S. Energy Information Administration.
necessary infrastructure. To address this, Noble Energy is actively working with our industry peers, trade associations, local governments and the public to advocate for infrastructure and vehicle conversion. As part of its commitment to expanding the use of CNG/LNG, Noble Energy opened a new school bus fueling and maintenance station in 2014. The new CNG station, funded in part by a grant from the Colorado Department of
Energy’s operating expenses budget. This cost is evaluated on a yearly basis but will likely occur indefinitely.
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Local Affairs, will be available for public use and will support the district’s fleet of next-generation school buses, which were donated by Noble Energy in 2013. It is a vital link in the CNG station network resulting from Weld County’s Smart Energy Plan. As of the end of 2016, 38 donated CNG school buses were operating in Weld County, with 9 more set to be delivered in 2017/2018.
CC6.1b
Please describe your inherent opportunities that are driven by changes in physical climate parameters
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Change in mean (average) temperature
With increasing global temperature, line freeze events and production equipment maintenance issues will decrease, causing a decrease in equipment downtime. Less downtime equates to increased production capacity for Noble Energy.
Increased production capacity
Unknown Direct Unknown Medium
Less equipment downtime, such as downtime for VRUs, would increase the amount of gas being recovered. This results in more gas being sold, as opposed to being routed to a backup flare when VRUs are down for maintenance purposes. In 2016, the use of VRUs allowed Noble Energy to experience savings of over $7 million.
In some instances, equipment downtime can mean a cessation in production. Less downtime would enable increased production and increased revenue. In 2016, Noble Energy invested approximately $32 million in the vapor recovery program . This results in more gas being sold, as opposed to being routed to a backup flare when VRUs are down for maintenance purposes. Because Noble Energy has implemented this at many sites, the Company has been able to reduce emissions and increase revenue. More than 200 VRUs have been installed in Noble Energy’s DJ Basin operations.
As part of Noble Energy's ongoing vapor recovery program, in 2016 approximately $32 million was invested in VRUs. Since many of the VRUs are rented, this is a cost that occurs annually and will continue to be a cost indefinitely.
CC6.1c
Please describe your inherent opportunities that are driven by changes in other climate-related developments
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Shifting consumer attitudes and increased education on hydrocarbon production and use as an energy source, and GHG emissions could present some broad opportunities to Noble Energy. For example, Noble Energy is currently educating consumers about the benefits of emissions reduction realized by changing fleets to CNG. This could lead to increased demand for natural gas.
Increased demand for existing products/services
Unknown Indirect (Supply chain)
More likely than not
Medium-high
Natural gas will be an economically feasible bridge fuel until renewable sources can be deployed over the next several decades. If consumer attitudes shift and realize the benefits of natural gas, Noble Energy may financially benefit from increased revenues due to the increased demand of natural gas during this transition period. From 2015 to 2016 the percentage of U.S. electricity generated from natural gas increased by
Noble Energy engages with consumers and suppliers about the lower emissions associated with natural gas. For example, Noble Energy works with certain suppliers to support conversion of fleet trucks to run on CNG, reducing their emissions and creating demand for natural-gas fueled vehicles. Additionally, Noble Energy communicates the benefits of natural gas in the Company’s annual Sustainability Report, website and other publicly available communications intended to engage with stakeholders. For
Costs include employee time and resources in monitoring, researching, and educational activities. These annual costs will occur indefinitely.
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
3.4% to a total of 33.8%, according to the U.S. Energy Information Administration.
a quick reference, in last year's Sustainability Report, Noble Energy discussed the benefits of CNG on page 6.
CC6.1d
Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC6.1e
Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC6.1f
Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading
Page: CC7. Emissions Methodology
CC7.1
Please provide your base year and base year emissions (Scopes 1 and 2)
Scope
Base year
Base year emissions (metric tonnes CO2e)
Scope 1 Sun 01 Jan 2012 - Mon 31 Dec 2012
2078600
Scope 2 (location-based) Sun 01 Jan 2012 - Mon 31 Dec 2012
61630
Scope 2 (market-based) Sun 01 Jan 2012 - Mon 31 Dec 2012
0
CC7.2
Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions
Please select the published methodologies that you use
US EPA Mandatory Greenhouse Gas Reporting Rule
American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
CC7.2a
If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions
CC7.3
Please give the source for the global warming potentials you have used
Gas
Reference
CO2 IPCC Fourth Assessment Report (AR4 - 100 year)
CH4 IPCC Fourth Assessment Report (AR4 - 100 year)
N2O IPCC Fourth Assessment Report (AR4 - 100 year)
CC7.4
Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page
Fuel/Material/Energy
Emission Factor
Unit
Reference
Natural gas 37.3 Other: scf/hour/component high continuous bleed pneumatic device
Subpart W
Natural gas 13.3 Other: scf/hour/component pneumatic pumps Subpart W
Further Information
Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)
CC8.1
Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory
Operational control
CC8.2
Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e
2520114
CC8.3
Please describe your approach to reporting Scope 2 emissions
Scope 2, location-based
Scope 2, market-based
Comment
We are reporting a Scope 2, location-based figure
We have no operations where we are able to access electricity supplier emissions factors or residual emissions factors and are unable to report a Scope 2, market-based figure
CC8.3a
Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e
Scope 2, location-based
Scope 2, market-based (if applicable)
Comment
23011
CC8.4
Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?
Yes
CC8.4a
Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure
Source
Relevance of
Scope 1 emissions from
this source
Relevance of location-
based Scope 2 emissions from this
source
Relevance of market-based
Scope 2 emissions from this source (if
applicable)
Explain why the source is excluded
Noble Energy's rented office space in Canonsburg, PA
No emissions excluded
Emissions are relevant but not yet calculated
No emissions from this source
Noble Energy could not acquire electricity information for this facility.
Dilley, TX field office No emissions excluded
Emissions are relevant but not yet calculated
No emissions from this source
Electricity information was not acquired for reporting year 2016, but will be included in reporting year 2017.
Pecos, TX field office No emissions excluded
Emissions are relevant but not yet calculated
No emissions from this source
Electricity information was not acquired for reporting year 2016, but will be included in reporting year 2017.
CC8.5
Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations
Scope
Uncertainty range
Main sources of
uncertainty
Please expand on the uncertainty in your data
Scope 1 More than 10% but less than or equal to 20%
Data Gaps Assumptions Metering/ Measurement Constraints
Uncertainties can arise due to estimates in certain field-level data. Counts in components of equipment are sometimes estimated. Operating hours of some equipment can be estimated, or just assumed to run all year. Capturing 100% of all event data is also a challenge and leads to uncertainty in the data.
Scope 2 (location-based)
More than 20% but less than or equal to 30%
Data Gaps Assumptions
In some areas, electricity data was not completely available. Electricity data for some of the multi-tenant buildings is provided as a building sum and estimated among Noble Energy-occupied floors.
Scope 2
Scope
Uncertainty range
Main sources of
uncertainty
Please expand on the uncertainty in your data
(market-based)
CC8.6
Please indicate the verification/assurance status that applies to your reported Scope 1 emissions
No third party verification or assurance
CC8.6a
Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements
Verification or
assurance cycle in place
Status in the
current reporting year
Type of verification or
assurance
Attach the statement
Page/section reference
Relevant standard
Proportion of reported Scope 1 emissions
verified (%)
CC8.6b
Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)
Regulation
% of emissions covered by the system
Compliance period
Evidence of submission
CC8.7
Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures
No third party verification or assurance
CC8.7a
Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements
Location-based or
market-based figure?
Verification or
assurance cycle in place
Status in the
current reporting year
Type of verification
or assurance
Attach the statement
Page/Section reference
Relevant standard
Proportion of
reported Scope 2 emissions verified
(%)
CC8.8
Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2
Additional data points verified
Comment
Additional data points verified
Comment
No additional data verified
CC8.9
Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?
No
CC8.9a
Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2
Further Information
Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)
CC9.1
Do you have Scope 1 emissions sources in more than one country?
Yes
CC9.1a
Please break down your total gross global Scope 1 emissions by country/region
Country/Region
Scope 1 metric tonnes CO2e
United States of America 1486605
Equatorial Guinea 864947
Israel 159921
Falkland Islands 8643
CC9.2
Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)
By activity
CC9.2a
Please break down your total gross global Scope 1 emissions by business division
Business division
Scope 1 emissions (metric tonnes CO2e)
CC9.2b
Please break down your total gross global Scope 1 emissions by facility
Facility
Scope 1 emissions (metric tonnes CO2e)
Latitude
Longitude
CC9.2c
Please break down your total gross global Scope 1 emissions by GHG type
GHG type
Scope 1 emissions (metric tonnes CO2e)
CC9.2d
Please break down your total gross global Scope 1 emissions by activity
Activity
Scope 1 emissions (metric tonnes CO2e)
Combustion 1572573
Flaring 543249
Fugitive 120502
Mobile 28871
Venting 254920
Further Information
Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)
CC10.1
Do you have Scope 2 emissions sources in more than one country?
Yes
CC10.1a
Please break down your total gross global Scope 2 emissions and energy consumption by country/region
Country/Region
Scope 2, location-based (metric
tonnes CO2e)
Scope 2, market-based (metric tonnes CO2e)
Purchased and consumed
electricity, heat, steam or cooling
(MWh)
Purchased and consumed low carbon electricity, heat, steam or
cooling accounted in market-based approach (MWh)
United States of America
18717 0 27581 0
Israel 4295 0 5826 0
Equatorial Guinea 0 0 0 0
Falkland Islands 0 0 0 0
CC10.2
Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)
By business division
CC10.2a
Please break down your total gross global Scope 2 emissions by business division
Business division
Scope 2, location-based (metric tonnes CO2e)
Scope 2, market-based (metric tonnes CO2e)
Corporate Offices 7343
Field Offices/Operations 15668
CC10.2b
Please break down your total gross global Scope 2 emissions by facility
Facility
Scope 2, location-based (metric tonnes CO2e)
Scope 2, market-based (metric tonnes CO2e)
CC10.2c
Please break down your total gross global Scope 2 emissions by activity
Activity
Scope 2, location-based (metric tonnes CO2e)
Scope 2, market-based (metric tonnes CO2e)
Further Information
Page: CC11. Energy
CC11.1
What percentage of your total operational spend in the reporting year was on energy?
More than 0% but less than or equal to 5%
CC11.2
Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year
Energy type
MWh
Heat 0
Steam 0
Cooling 0
CC11.3
Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year
6141022
CC11.3a
Please complete the table by breaking down the total "Fuel" figure entered above by fuel type
Fuels
MWh
Aviation gasoline 8764
Motor gasoline 24795
Distillate fuel oil No 2 496012
Natural gas 5609504
Liquefied Natural Gas (LNG) 1947
CC11.4
Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a
Basis for applying a low carbon emission factor
MWh consumed associated with low
carbon electricity, heat, steam or cooling
Emissions factor (in units of metric
tonnes CO2e per MWh)
Comment
No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor
CC11.5
Please report how much electricity you produce in MWh, and how much electricity you consume in MWh
Total electricity consumed
(MWh)
Consumed
electricity that is purchased (MWh)
Total electricity produced
(MWh)
Total renewable
electricity produced (MWh)
Consumed renewable
electricity that is produced by company (MWh)
Comment
33407 33407 0 0 0
Further Information
Page: CC12. Emissions Performance
CC12.1
How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?
Increased
CC12.1a
Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year
Reason
Emissions value
(percentage)
Direction of change
Please explain and include calculation
Emissions reduction activities
1.27 Decrease Associated gas flaring decreased in Noble's Texas operations from 2015 to 2016, resulting in a decrease of 28,426 tonnes CO2e. This value divided by last year's gross global emissions of 2,245,928 tonnes CO2e resulted in a reduction of 1.27%. (28,426/2,245,928)*100 = 1.27%
Divestment .51 Decrease There were several divestitures in 2016 from certain properties in Noble's DJ Basin and Eagleford
Reason
Emissions value
(percentage)
Direction of change
Please explain and include calculation
properties. The Bowdoin property in northern Montana was also divested. Due to the difficulty of calculating the exact decrease of divested properties from larger business units, the 0.51% decrease is calculated only from the Montana divestment. A decrease of 11,383 tonnes CO2e resulted in a 0.51% decrease. (11,383/2,245,928)*100 = 0.51%
Acquisitions 4.4 Increase Noble Energy acquired the Thunder Hawk platform in the Gulf of Mexico in 2016. The added emissions (99,273) divided by last year's total (2,245,928) gave us a 4.4% increase. (99,273/2,245,928)*100 = 4.4%
Mergers 0 No change Noble Energy reported no mergers in 2016.
Change in output 1.72 Decrease The 1.72% listed here represents the reduction in venting from the Neptune Spar platform in offshore Gulf of Mexico. The reason for the reduction was less input into the facility, which resulted in a decrease of 38,562 tonnes CO2e. (38,562/2,245,928)*100 = 1.72%.
Change in methodology
1.11 Decrease In our Texas operations, the run-time for intermittent pneumatic devices was adjusted to more accurately reflect the actual run-time as opposed to the default of 8760 hours. This resulted in a decrease of 24,820 tonnes CO2e. (24,820/2,245,928)*100 = 1.11%.
Change in boundary
7.08 Increase
Due to an EPA rule change in 2016, a new industry segment, Onshore Petroleum and Natural Gas Gathering and Boosting, came into effect and caused an increase in Noble Energy's emissions. The largest change occurred in Texas where several large facilities that were exempt last year became applicable. This resulted in an increase of 202,967 tonnes CO2e. Also in 2016 Noble was no longer actively drilling in offshore Falkland Islands, although there was some remaining marine vessel usage. This resulted in a decrease of 44,007 tonnes CO2e. [(202,967-44,007)/2,245,928]*100 = 7.08%.
Change in physical operating conditions
8.09 Increase
There were several changes in operating conditions that resulted in the overall increase of 5.67%. Compressor use in the DJ Basin increased resulting in an increase of combustion emissions (125,142 tonnes CO2e). Due to the low oil and gas price environment there was a reduction in activity at Noble's Marcellus operations (52,181 tonnes CO2e). Flaring increased in Equatorial Guinea (110,618 tonnes CO2e). There was also slighlty less venting from Noble's Eastern Mediterranean operations (1,919 tonnes CO2e). [(125,142-52,181+110,618-1,919)/2,245,928]*100 = 8.09%.
Unidentified 0 No change Noble Energy had no unidentified changes.
Other 1.76 Decrease
Other various decreases are represented here and include lower counts of pneumatic devices and pumps, lower count of liquid unloadings, and lower tank emissions in our Texas operations due to the varied nature of liquid samples used to simulate tank flash emissions. These various decreases amounted to 39,503 tonnes CO2e. (39,503/2,245,928)*100 = 1.76%
CC12.1b
Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?
Location-based
CC12.2
Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue
Intensity figure =
Metric numerator (Gross global combined
Scope 1 and 2 emissions)
Metric denominator:
Unit total revenue
Scope 2 figure used
% change from
previous year
Direction of change from
previous year
Reason for change
0.00073 metric tonnes CO2e
3491000000 Location-based
2.34 Decrease
Although emissions rose from 2015 to 2016, revenue increased enough to result in a small decrease in intensity. The revenue increase was due to higher sales volumes in 2016.
CC12.3
Please provide any additional intensity (normalized) metrics that are appropriate to your business operations
Intensity figure =
Metric numerator (Gross global combined
Scope 1 and 2 emissions)
Metric denominator
Metric
denominator: Unit total
Scope 2 figure used
% change from
previous year
Direction of change from previous year
Reason for change
.013 metric tonnes CO2e
barrel of oil equivalent (BOE)
178691277 Location-based
18.2 Increase The intensity figure rose mostly due to the increase in emissions explained in CC12.1a.
Further Information
Page: CC13. Emissions Trading
CC13.1
Do you participate in any emissions trading schemes?
No, and we do not currently anticipate doing so in the next 2 years
CC13.1a
Please complete the following table for each of the emission trading schemes in which you participate
Scheme name
Period for which data is supplied
Allowances allocated
Allowances purchased
Verified emissions in metric tonnes CO2e
Details of ownership
CC13.1b
What is your strategy for complying with the schemes in which you participate or anticipate participating?
CC13.2
Has your organization originated any project-based carbon credits or purchased any within the reporting period?
No
CC13.2a
Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period
Credit origination
or credit purchase
Project type
Project identification
Verified to which standard
Number of credits (metric
tonnes CO2e)
Number of credits (metric tonnes
CO2e): Risk adjusted volume
Credits canceled
Purpose, e.g. compliance
Further Information
Page: CC14. Scope 3 Emissions
CC14.1
Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Emissions calculation methodology
Percentage of
emissions calculated using data obtained
from suppliers or value chain
partners
Explanation
Purchased goods and services
Relevant, not yet calculated
Capital goods Relevant, not yet calculated
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Relevant, not yet calculated
Upstream transportation and distribution
Relevant, not yet calculated
Waste generated in operations
Relevant, not yet calculated
Business travel Relevant, calculated
3434.93 EPA Climate Leaders Guidance
100.00%
Employee commuting Relevant, calculated
9240.29 EPA Climate Leaders Guidance
0.00%
Upstream leased assets
Relevant, not yet calculated
Downstream transportation and distribution
Relevant, not yet calculated
Processing of sold products
Relevant, not yet calculated
Use of sold products Relevant, calculated
35125181
GHG Protocol Category 11: Use of Sold Products. EPA Subpart W Combustion
0.00%
This was calculated by taking the natural gas sold value from the 2016 Annual Report and assuming it was all combusted by downstream customers. Methodology for the actual calculation was used from EPA Subpart W combustion
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Emissions calculation methodology
Percentage of
emissions calculated using data obtained
from suppliers or value chain
partners
Explanation
section.
End of life treatment of sold products
Not relevant, explanation provided
Noble Energy investigated the relevance of this Scope 3 source and concluded this source is not relevant due to the fact that GHG life cycle assessments of petroleum fuels do not include an “end-of-life treatment of sold products” stage, as our products are consumed during use.
Downstream leased assets
Not relevant, explanation provided
Noble Energy does not have any downstream leased assets at the current time.
Franchises Not relevant, explanation provided
Noble Energy does have any franchises at the current time.
Investments Not evaluated
Other (upstream) Not relevant, explanation provided
There are no activities upstream of Noble Energy and any work done on its operated site is included in the Scope 1 emissions inventory. Therefore, any emissions from hydraulic fracturing, drilling, or workover operations conducted by contractors are included in the Noble Energy Scope 1 inventory.
Other (downstream) Relevant, not yet calculated
CC14.2
Please indicate the verification/assurance status that applies to your reported Scope 3 emissions
No third party verification or assurance
CC14.2a
Please provide further details of the verification/assurance undertaken, and attach the relevant statements
Verification or
assurance cycle in place
Status in the
current reporting year
Type of
verification or assurance
Attach the statement
Page/Section reference
Relevant standard
Proportion of
reported Scope 3 emissions verified (%)
CC14.3
Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?
Yes
CC14.3a
Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year
Sources of
Scope 3 emissions
Reason for change
Emissions value
(percentage)
Direction of
change
Comment
Sources of
Scope 3 emissions
Reason for change
Emissions value
(percentage)
Direction of
change
Comment
Business travel Change in physical operating conditions
56.5 Decrease Business travel decreased in part due to the end of the Falkland Islands drilling campaign.
Employee commuting
Unidentified 6.5 Increase There was a slight increase in employee commuting emissions, , but the employee count decreased from 2015 to 2016. Due to the survey being voluntary, employee participation can vary from year to year.
Use of sold products
Change in output 18.0 Increase The increase was due to higher sales volumes in 2016 from the Marcellus, Texas, and offshore international operations.
CC14.4
Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)
Yes, our suppliers
CC14.4a
Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success
CC14.4b
To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent
Type of
engagement
Number of
suppliers
% of total
spend (direct
and indirect)
Impact of engagement
Active engagement
17 42.5%
Where possible, Noble Energy works with its supply chain to promote the use of CNG and LNG. Noble Energy gives preference to suppliers with lower GHG emitting technologies. In 2013, the Company began including information in some of its Request for Proposals (RFPs) requiring a response to the applicant’s commitment to natural gas and weighted this response when evaluating potential new suppliers. Noble Energy prioritizes supplier engagements by fuel usage and/or the ability to take trucks off the road all together. In 2016, Noble Energy has continued to work closely with the water haulers Renewable Fiber and Dillon Transport, where financing was provided for CNG trucks . Due to the Renewable Fiber and Dillon Transport partnerships, approximately 50 percent of all water in the DJ Basin is hauled by natural gas vehicles, a number the Company is proud of and will work to maintain and/or improve upon. These trucks help the companies reduce costs and emissions. Natural gas vehicles are cleaner than traditional gasoline or diesel vehicles, resulting in 70-90 percent less carbon monoxide, 75-95 percent less nitrogen oxide, and 20-30 percent less carbon dioxide emissions. Additionally, natural gas is significantly less expensive: on average, natural gas is over one-third less expensive than gasoline and between 25-42 percent less expensive than diesel. As a note, the number of suppliers and % of total spend in this table is from Noble Energy's DJ Basin operating area. The Company will look to broaden the scope of this reporting to other Business Units in the future.
CC14.4c
Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future
Further Information
Module: Sign Off
Page: CC15. Sign Off
CC15.1
Please provide the following information for the person that has signed off (approved) your CDP climate change response
Name
Job title
Corresponding job category
Steven Broadaway Environmental Engineer Environment/Sustainability manager
Further Information
Module: Oil & Gas
Page: OG0. Reference information
OG0.1
Please identify the significant petroleum industry components of your business within your reporting boundary (select all that apply)
Exploration, production & gas processing
Further Information
Page: OG1. Production, reserves and sales by hydrocarbon type - (1 Jan 2016 - 31 Dec 2016)
OG1.1
Is your organization involved with oil & gas production or reserves?
Yes
OG1.2
Please provide values for annual gross and net production by hydrocarbon type (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization
Product
Gross production
(BOE)
Net production
(BOE)
Production
consolidation boundary
Comment
Conventional non-associated natural gas Associated natural gas Shale gas Tight gas
134263000
Operational control
Natural gas condensate Light oil Medium oil
70225000
Operational control
OG1.3
Please provide values for reserves by hydrocarbon type (in units of BOE) for the reporting year. Please indicate if the figures are for reserves that are proved, probable or both proved and probable. The values required are aggregate values for the reporting organization
Product
Country/region
Reserves (BOE)
Date of assessment
Proved/Probable/Proved+Probable
Natural gas condensate Light oil Medium oil
United States of America
296000000 Sat 31 Dec 2016
Proved
Conventional non-associated natural gas Associated natural gas
United States of America
473000000 Sat 31 Dec 2016
Proved
Product
Country/region
Reserves (BOE)
Date of assessment
Proved/Probable/Proved+Probable
Shale gas Tight gas
Natural gas liquids (NGL)
United States of America
207000000 Sat 31 Dec 2016
Proved
Natural gas condensate Light oil Medium oil
Equatorial Guinea
34000000 Sat 31 Dec 2016
Proved
Associated natural gas
Equatorial Guinea
81000000 Sat 31 Dec 2016
Proved
Natural gas liquids (NGL)
Equatorial Guinea
12000000 Sat 31 Dec 2016
Proved
Natural gas condensate Light oil Medium oil
Israel 3000000 Sat 31 Dec 2016
Proved
Conventional non-associated natural gas
Israel 330667000 Sat 31 Dec 2016
Proved
OG1.4
Please explain which listing requirements or other methodologies you have used to provide reserves data in OG1.3. If your organization cannot provide data due to legal restrictions on reporting reserves figures in certain countries, please explain this
Reserves data presented in OG1.3 is extracted from Noble Energy’s 2016 Annual Report. Specifically, the “Proven Oil and Gas Reserves” table in the Form 10-K report.
OG1.5
Please provide values for annual sales of hydrocarbon types (in units of BOE) for the reporting year in the following table. The values required are aggregate values for the reporting organization
Product
Sales (BOE)
Comment
Natural gas condensate Light oil Medium oil
46529000
Conventional non-associated natural gas Associated natural gas Shale gas Tight gas
85185800
Natural gas liquids (NGL)
21825000
OG1.6
Please provide the average breakeven cost of current production used in estimation of proven reserves
Hydrocarbon/project
Breakeven cost/BOE
Comment
OG1.7
In your economic assessment of hydrocarbon reserves, resources or assets, do you conduct scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition?
OG1.7a
Please describe your scenario analysis and/or portfolio stress testing, the inputs used and the implications for your capital expenditure plans and investment decisions
OG1.7b
Please explain why you have not conducted any scenario analysis and/or portfolio stress testing consistent with a low-carbon energy transition
Further Information
Page: OG2. Emissions by segment in the O&G value chain - (1 Jan 2016 - 31 Dec 2016)
OG2.1
Please indicate the consolidation basis (financial control, operational control, equity share) used to report the Scope 1 and Scope 2 emissions by segment in the O&G value chain. Further information can be provided in the text box in OG2.2
Segment
Consolidation basis for reporting Scope 1 emissions
Consolidation basis for reporting Scope 2 emissions
Exploration, production & gas processing Operational Control Operational Control
OG2.2
Please provide clarification for cases in which different consolidation bases have been used and the level/focus of disclosure. For example, a reporting organization whose business is solely in storage, transportation and distribution (STD) may use the text box to explain why only the STD row has been completed
Noble Energy is only involved in the exploration and production segment of the oil and gas industry, and the operational control consolidation basis makes the most sense since it aligns with the U.S. EPA mandatory greenhouse gas rule consolidation basis.
OG2.3
Please provide masses of gross Scope 1 carbon dioxide and methane emissions in units of metric tonnes CO2 and CH4, respectively, for the organization’s owned/controlled operations broken down by value chain segment
Segment
Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)
Gross Scope 1 methane emissions (metric tonnes CH4)
Exploration, production & gas processing 2004933 20361
OG2.4
Please provide masses of gross Scope 2 GHG emissions in units of metric tonnes CO2e for the organization’s owned/controlled operations broken down by value chain segment
Segment
Gross Scope 2 emissions (metric tonnes CO2e)
Comment
Exploration, production & gas processing 23011
Further Information
Page: OG3. Scope 1 emissions by emissions category - (1 Jan 2016 - 31 Dec 2016)
OG3.1
Please confirm the consolidation basis (financial control, operational control, equity share) used to report Scope 1 emissions by emissions category
Segment
Consolidation basis for reporting Scope 1 emissions by emissions category
Exploration, production & gas processing Operational Control
OG3.2
Please provide clarification for cases in which different consolidation bases have been used to report by emissions categories (combustion, flaring, process emissions, vented emissions, fugitive emissions) in the various segments
There are no cases where different consolidation bases have been used.
OG3.3
Please provide masses of gross Scope 1 carbon dioxide and methane emissions released into the atmosphere in units of metric tonnes CO2 and CH4, respectively, for the whole organization broken down by emissions category
Emissions category
Gross Scope 1 carbon dioxide emissions (metric tonnes CO2)
Gross Scope 1 methane emissions (metric tonnes CH4)
Combustion 1500223 2742
Flaring 477018 2639
Process emissions 0 0
Vented emissions 593 10173
Fugitive emissions 375 4805
OG3.4
Please describe your organization’s efforts to reduce flaring, including any flaring reduction targets set and/or its involvement in voluntary flaring reduction programs, if flaring is relevant to your operations
Noble Energy attempts to reduce flaring as much as economically and feasibly possible. In our Equatorial Guinea operations, turbine compressors are used to re-inject produced gas that would otherwise be flared.
Further Information
Page: OG4. Transfers & sequestration of CO2 emissions - (1 Jan 2016 - 31 Dec 2016)
OG4.1
Is your organization involved in the transfer or sequestration of CO2?
No
OG4.2
Please indicate the consolidation basis (financial control, operational control, equity share) used to report transfers and sequestration of CO2 emissions
Activity
Consolidation basis
OG4.3
Please provide clarification for cases in which different consolidation bases have been used (e.g. for a given activity, capture, injection or storage pathway)
OG4.4
Using the units of metric tonnes of CO2, please provide gross masses of CO2 transferred in and out of the reporting organization (as defined by the consolidation basis). Please note that questions of ownership of the CO2 are addressed in OG4.6
Transfer direction
CO2 transferred – Reporting year
OG4.5
Please provide clarification on whether any oil reservoirs and/or sequestration system (geological or oceanic) have been included within the organizational boundary of the reporting organization. Provide details, including degrees to which reservoirs are shared with other entities
OG4.6
Please explain who (e.g. the reporting organization) owns the transferred emissions and what potential liabilities are attached. In the case of sequestered emissions, please clarify whether the reporting organization or one or more third parties owns the sequestered emissions and who has potential liability for them
OG4.7
Please provide masses in metric tonnes of gross CO2 captured for purposes of carbon capture and sequestration (CCS) during the reporting year according to capture pathway. For each pathway, please provide a breakdown of the percentage of the gross captured CO2 that was transferred into the reporting organization and the percentage that was transferred out of the organization (to be stored)
Capture pathway in CCS
Captured CO2 (metric tonnes CO2)
Percentage transferred in
Percentage transferred out
OG4.8
Please provide masses in metric tonnes of gross CO2 injected and stored for purposes of CCS during the reporting year according to injection and storage pathway
Injection and storage pathway
Injected CO2 (metric tonnes CO2)
Percentage of injected CO2 intended for long-term (>100
year) storage
Year in which injection began
Cumulative CO2 injected and stored (metric tonnes CO2)
OG4.9
Please provide details of risk management performed by the reporting organization and/or third party in relation to its CCS activities. This should cover pre-operational evaluation of the storage (e.g. site characterization), operational monitoring, closure monitoring, remediation for CO2 leakage, and results of third party verification
Further Information
Page: OG5. Emissions intensity - (1 Jan 2016 - 31 Dec 2016)
OG5.1
Please provide estimated emissions intensities (Scope 1 + Scope 2) associated with current production and operations
Year ending
Segment
Hydrocarbon/product
Emissions intensity (metric
tonnes CO2e per
thousand BOE)
% change
from previous
year
Direction of change from previous year
Reason for change
2016 Exploration, production & gas processing
Conventional non-associated natural gas Associated natural gas Natural gas condensate
13 18 Increase The intensity figure rose mostly due to the increase in emissions detailed in CC12.1a.
Year ending
Segment
Hydrocarbon/product
Emissions intensity (metric
tonnes CO2e per
thousand BOE)
% change
from previous
year
Direction of change from previous year
Reason for change
Shale gas Tight gas Light oil Medium oil
OG5.2
Please clarify how each of the emissions intensities has been derived and supply information on the methodology used where this differs from information already given in answer to the methodology questions in the main information request
The emission intensity is calculated from total emissions from the production segment of Noble Energy's operations divided by the total production in MBOE.
Further Information
Page: OG6. Development strategy - (1 Jan 2016 - 31 Dec 2016)
OG6.1
For each relevant strategic development area, please provide financial information for the reporting year
Strategic development area
Describe how this
relates to your business strategy
Sales generated
EBITDA
Net assets
CAPEX
OPEX
Comment
OG6.2
Please describe your future capital expenditure plans for different strategic development areas
Strategic development area
CAPEX
Total return expected from CAPEX investments
Comment
OG6.3
Please describe your current expenses in research and development (R&D) and future R&D expenditure plans for different strategic development areas
Strategic development area
R&D expenses – Reporting year
R&D expenses – Future plans
Comment
Further Information
Page: OG7. Methane from the natural gas value chain
OG7.1
Please indicate the consolidation basis (financial control, operational control, equity share) used to prepare data to answer the questions in OG7
Segment
Consolidation basis
Exploration, production & gas processing Operational Control
OG7.2
Please provide clarification for cases in which different consolidation bases have been used
Noble Energy is only involved in the exploration and production segment of the petroleum industry.
OG7.3
Does your organization conduct leak detection and repair (LDAR), or use other methods to find and fix fugitive methane emissions?
Yes
OG7.3a
Please describe the protocol through which methane leak detection and repair, or other leak detection methods, are conducted, including predominant frequency of inspections, estimates of assets covered, and methodologies employed
Noble Energy follows the leak detection and repair protocol set by Colorado's Regulation 7 for the DJ Basin's operations. Depending on the site's VOC emissions, monitoring requirements are either monthly, quarterly, or annually. Approximately 98% of Noble Energy's assets in the DJ Basin have been inspected by IR camera. A smaller program in the Appalachian Basin also is in effect based on local regulations.
OG7.3b
Please explain why not and whether you plan on conducting leak detection and repair, or other methods to find and fix fugitive methane emissions
OG7.4
Please indicate the proportion of your organization’s methane emissions inventory estimated using the following methodologies (+/- 5%)
Methodology
Proportion of total methane emissions estimated with methodology
What area of your operations does this answer relate to?
Direct detection and measurement 5% to <10% All
Engineering calculations >75% All
Source-specific emission factors (IPCC Tier 3) >75% All
IPCC Tier 1 and/or Tier 2 emission factors >0% to <5% All
OG7.5
Please use the following table to report your methane emissions rate
Year ending
Segment
Estimate total methane emitted expressed as % of natural gas production or
throughput at given segment
Estimate total methane emitted expressed as % of total hydrocarbon production or throughput
at given segment
2016 Exploration, production & gas processing
.15% .11%
OG7.6
Does your organization participate in voluntary methane emissions reduction programs?
No
OG7.6a
Please describe your organization’s participation in voluntary methane emissions reduction programs
OG7.7
Did you have a methane-specific emissions reduction target that was active (ongoing or reached completion) in the reporting year and/or were methane emissions incorporated into targets reported in CC3?
No
OG7.7a
If you have a methane-specific emissions reduction target that is not detailed as a separate target in CC3, please provide those details here, addressing all of the metrics requested in table CC3.1a or CC3.1b (for an absolute or intensity target, respectively)
OG7.7b
If methane emissions were incorporated into targets reported in CC3 (but not detailed as a separate target), please indicate which target ID(s) incorporate methane emissions, and specify the portion of those targets that is comprised of methane
OG7.7c
Please explain: (i) why you do not have a methane-specific emissions reduction target or do not incorporate methane into your targets reported in CC3; and (ii) forecast how your methane emissions will change over the next five years
Noble Energy does not currently have a forecast for specific methane emissions reductions for the next five years. Due to Noble Energy's ongoing divestitures and acquisitions it is difficult to forecast aggregate methane emissions because the properties are sold and purchased in discrete packages. Continual improvement of data gathering and calculation methodologies also make it difficult to predict the impact on methane emissions. Because of this, the Company does not currently have a specific methane emissions reduction target; however, we believe emissions will likely increase due to projected growth in the DJ Basin and Texas assets.
Further Information
CDP 2017 Climate Change 2017 Information Request