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Sustainability and low-carbon transition toward US oil and gas companies’ efficiencies

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Abstract

A global imperative for climate change has constrained a fundamental shift in the energy sector towards sustainable and low-carbon practices. The important first step towards sustainability involves assessing the environmental and operational efficiency and sustainability of companies. This study uses a true fixed-effect model to analyse operational and environmental efficiency for 53 oil and gas companies during 2000–2022 in United States. This study also explores the impact of U.S. energy transition policy on the OGCs’ efficiency, considering the US administrations' contradictory priorities regarding sustainability and low-carbon transition policy. The findings reveal a convergence in the level of operational and environmental efficiency, with similar trends and reduced gaps over the study period, except in crises periods, as both influenced by economic activity levels and the Covid-19 pandemic. The results highlight a discernible trend among U.S. OGCs towards reduced CO2 emissions in recent years. Moreover, the research indicates that U.S. energy transition policy and increased power generation from new renewables capacity, primarily wind and solar, contribute to promote environmental efficiency.

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Data availability

All data used in this study are available in the Thomson financial databases and in the NYSE Energy index and also the U.S. Energy Information Administration.

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Acknowledgements

Princess Nourah bint Abdulrahman University Researchers Supporting Project number (PNURSP2024R548), Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia.

Funding

Princess Nourah bint Abdulrahman University Researchers Supporting Project number (PNURSP2024R548), Princess Nourah bint Abdulrahman University, Riyadh, Saudi Arabia, Hind Alofaysan.

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Authors and Affiliations

  1. Department of Business Administration, College of Science and Humanities - Al Quwayiyah, Shaqra University, Al Quwayiyah, Saudi Arabia

    Sami Jarboui

  2. Department of Economics, Faculty of Economics and Management, University of Sfax, Sfax, Tunisia

    Sami Jarboui

  3. Department of Economics, College of Business Administration, Princess Nourah Bint Abdulrahman University, P.O. Box 84428, Riyadh, 11671, Saudi Arabia

    Hind Alofaysan

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  1. Sami Jarboui
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Correspondence to Sami Jarboui.

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Jarboui, S., Alofaysan, H. Sustainability and low-carbon transition toward US oil and gas companies’ efficiencies. Environ Dev Sustain (2024). https://doi.org/10.1007/s10668-024-04945-3

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