Direct GHG (Scope 1) Emissions Reductions

Direct emissions are from sources that are owned or controlled by Pioneer. Pioneer’s GHG emissions inventory and emissions reduction targets include Scope 1 emissions under our operational control. To achieve our emissions targets, we are developing proactive strategies around operational best practices, technological innovation, applied research and industry partnership.

Through collaboration, we leverage the varied skillsets of our teams to create innovative approaches to minimize emissions and mitigate emission-related risks. We reinforce this alignment through incentive compensation policies established by the Board. Reducing GHG and non-GHG emissions, while increasing the capture of salable product, are key considerations in how Pioneer drills and completes our wells; designs, builds and operates our facilities; and manages our relationship with third-party midstream providers who gather, process and transport our oil and natural gas.

Summary:

Emission-Reduction Actions Supporting Our Targets

ACTION	BEST MANAGEMENT PRACTICES
Drilling and Completions	Reducing diesel fuel combustion Minimizing venting and flaring Driving technology improvements to improve efficiency
Facility Construction and Operations	Constructing modern facilities for new oil and gas production Requiring natural gas sales connections prior to placing a well on production to prevent flaring Partnering with gas processors to minimize flaring due to operational upsets Installing VRUs to capture tank emissions that can be routed to sales Actively monitoring flares and emission controls Expanding use of instrument air with pneumatic devices Capturing facility maintenance blowdown emissions Updating acquired facilities to Pioneer standards Plugging and reclaiming uneconomic wells
	Detecting and repairing methane and non-GHG emissions leaks Monitoring facilities with aerial, fixed site and regional methane technologies Working to improve emissions quantification

Methane Emissions

Prioritizing Vapor Recovery – Pioneer prioritizes gas capture over venting and flaring and installs vapor recovery units (VRUs) at our horizontal well tank batteries. These tank batteries handled more than 98% of our oil and gas production in 2022, making VRUs an important means of managing facility emissions. Pioneer VRUs captured 6.6 million tonnes of methane (in CO2e). This practice, along with constructing adequate gas takeaway infrastructure prior to initiating production from a well and continuing our comprehensive Leak Detection and Repair (LDAR) activities, enhances Pioneer’s ability to capture and sell a maximum volume of gas, while reducing our emissions footprint.

Designing and Operating Top-tier Facilities – Pioneer incorporates emissions reduction as a criterion in its facility design. Pioneer also strives for excellence in how we operate and maintain our production facilities. The following tables highlight some of the initiatives that have driven our reductions in flaring, venting and emissions.

Top-tier Design:

Emissions-focused Engineered Solutions

EQUIPMENT	BENEFITS
Storage Tanks Install high-pressure-rated tanks	Increase capability to maintain tank pressures without the need to flare or vent
Thief Hatches Improve quality and performance range	Decrease venting; improve hatch re-seating after upset condition to maintain tank pressures and prevent oxygen introduction
Tank Vapors Route gas to flare	Increase capability to maintain tank pressures and, in upset situations, route captured gas to flare for combustion instead of venting
Flare Design Dual tip flares	Manage low- and high-pressure volumes with fewer flares and pilots in operation
Flare Design Combustion efficiency testing	Actively manage flare performance and improve data accuracy
Flare Design Monitor remotely	Minimize potential for unlit flares; minimize response time through timely notification to production operations personnel
Pneumatic Controllers Install or retrofit with instrument air systems at tank batteries and well pads	Reduce or eliminate the need for natural gas to actuate controllers while improving on-site safety

Operational Excellence:

Facility Operations and Maintenance Programs

ACTIVITY	BENEFITS
Truck Loading Capture and route truck-loading vapor to low-pressure flare	Combustion of emissions rather than venting of emissions
Automatic Tank Gauging Measure tank levels without introducing oxygen into the system	Prevent introduction of oxygen that must be purged by flaring; mitigate venting that would occur with manual gauging; eliminates need to open tanks
Oxygen Minimization Implement processes to minimize oxygen introduction into system	Reduce purchaser shut-ins and decrease venting by sending gas to flare for combustion when oxygen levels are out of specification due to malfunction
Blanket Gas Install blanket gas for storage vessels	Prevent oxygen introduction that must be purged by venting or flaring
Compressor Blowdowns Capture and route gases to sales pipelines	Depressurize gas to closed system prior to maintenance to reduce venting
Engine Catalyst Maintenance Install higher-performing elements and conduct routine maintenance	Increase the life and efficiency of catalysts leading to greater reduction of carbon monoxide and VOCs

Reducing Pneumatic Controller Emissions – Pioneer has reduced emissions by changing to “instrument air” pneumatic controllers from gas-driven pneumatic controllers. Instrument air pneumatic controllers are included in our standard design for new horizontal tank batteries. In addition to converting existing controllers at acquired facilities, Pioneer is executing a three-year program to install air compressors to operate pneumatic controllers at its legacy horizontal tank batteries and targeted well pads.

The Benefits of Instrument Air

Pneumatic controllers traditionally use pressurized natural gas to actuate facility equipment, then intermittently or slowly emit the working gas, resulting in methane and non-GHG emissions. An instrument air system replaces natural gas with compressed atmospheric air, eliminating those emissions and providing additional safety benefits.

Monitoring for Fugitive Emissions – We use various techniques such as audio, visual and olfactory (AVO) inspections, optical gas imaging (OGI) cameras, portable gas detectors, and aerial methane detection across Pioneer operations to monitor facilities for fugitive emissions leaks. Pioneer employs a team of thermographers with OGI cameras to survey our facilities, including well pads, tank batteries and associated gathering pipelines. Infrared sensors in OGI cameras enable instant detection and visualization of emissions. Each Pioneer thermographer receives biennial OGI training to review proper safety protocols, operation of the camera, gas identification techniques and limiting environmental conditions.

While our Leak Detection and Repair (LDAR) program emphasizes detection of methane, emissions of other non-GHGs, such as VOCs and hydrogen sulfide (H2S), are also mitigated when leaks are found and repaired. Pioneer currently surveys all facilities multiple times per year. In 2022, Pioneer performed more than 23,000 site surveys using OGI and aerial technologies at Pioneer well pads and tank batteries. Any leaks detected were promptly repaired.