Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

Ben Dell's job is to buy oil and gas assets, as a managing partner of private equity firm Kimmeridge. And he has a message for his peers: You're going unacceptably slow on carbon neutrality.

Driving the news: Kimmeridge recently formed Civitas Resources, via the $2.3 billion all-stock merger of publicly traded Bonanza Creek Energy and Extraction Oil & Gas. Civitas then purchased Crestone Peak, creating the largest pure-play energy producer in Colorado's DJ Basin.

  • Civitas also claims to be Colorado's first carbon-neutral oil and gas company.

In the well weeds: Yes, the idea of a carbon-neutral E&P feels inherently insincere. But Dell argues that companies like Civitas can improve production efficiency and buy carbon offsets to satisfy Scope 1 and Scope 2 emissions (both of which relate to activities within a company's direct or indirect control).

  • "I believe all of our upstream investments in our go-forward funds need to be net zero on Scopes 1 and 2," Dell says. "Civitas is the beginning of that, and can demonstrate to others what the new business model for E&Ps needs to be. We can be carbon neutral for the planet and generate cash-flow for shareholders."
  • He adds that Civitas was a good test case because of the DJ Basin's rock quality and Colorado's stringent regulations in areas like air quality, emissions, noise monitoring and reporting.

But, wait, what about Scope 3? These are emissions resulting from activities that a company doesn’t control, but which result from the use of a company's products (e.g., burning gasoline to power a truck).

  • To be sure, Civitas contributes to Scope 3 emissions by its very existence. And most oil companies indirectly create way more Scope 3 than Scopes 1 and 2 combined. But Dell argues that Scope 3 responsibilities belong to the consumer, and are best managed via techniques like increased carbon pricing.
  • If it's layered onto the E&Ps, he adds, then there's less incentive for Escalade drivers to transition to more efficient vehicles. It makes a certain amount of sense, even if self-serving, and is a distinction that could help persuade energy producers and private equity to not pass the buck on Scopes 1 and 2.

The bottom line, per Dell: "Most oil and gas companies and investors are talking about carbon neutrality by 2040 or 2050, but there's no reason they can't get there by 2030 at the latest. It's about walking the walk, not just talking the talk."

Go deeper

Ben Geman, author of Generate
Jan 10, 2022 - Energy & Environment

The oil industry's decarbonization divide

Illustration: Aïda Amer/Axios

A pair of recent surveys shows how plans to curb emissions have only partially taken hold in the oil-and-gas industry.

Driving the news: The Kansas City Fed's latest quarterly poll of firms headquartered or located in its district found that 45% had a plan to reduce CO2 emissions and 41% had a plan to cut methane.

3 hours ago - World

Biden will move U.S. troops to Eastern Europe "in the near term"

President Biden boards Air Force One at Joint Base Andrews on Jan. 28. Photo: SAUL LOEB/AFP via Getty Images

President Biden said on Friday he plans to move U.S. troops to Eastern European and NATO countries “in the near term.”

Driving the news: “Not too many” U.S. troops, Biden added in remarks to reporters at Joint Base Andrew upon returning from a trip to Pennsylvania. 

Updated 3 hours ago - Energy & Environment

Bomb cyclone prompts blizzard warnings from Virginia to Maine

Computer model projection showing the intense storm off of Cape Cod on Jan 29, 2022, with heavy snow and strong winds lashing the coastline. (Weatherbell.com)

Blizzard warnings are in effect for 11 million people from coastal Virginia to eastern Maine as a potentially historic winter storm is set to slam the Mid-Atlantic and Northeast beginning Friday.

Why it matters: The storm will bring hazards ranging from zero visibility amid hurricane force wind gusts and heavy snow, to coastal flooding that will erode vulnerable beaches and threaten property from the Jersey shore to coastal Massachusetts.