After months of anticipation, the Obama Administration this month released its new methane emissions strategy – a plan that opens up new opportunities for industry writ large, and especially for operators that want to cut waste and get ahead.
The centerpiece of the strategy are imminent rules that will help us meet a new national goal to reduce harmful methane pollution from oil and natural gas operations by 45 percent by 2025.
But the rules also bring direct industry benefits. Here are four reasons the new methane emissions strategy is a boon, rather than bane, for America’s $1.2-trillion oil and gas sector:
1. It tackles $1.8 billion in annual waste and adds market certainty
Leaky infrastructure and unnecessary venting across the oil and gas value chain cost an estimated $1.8 billion in wasted product and lost revenue annually.
The new rules require companies to include up-to-date controls as they build out new and modified infrastructure, keeping gas in the pipeline while making new facilities more efficient. Read More
Source: MIssy Schmidt/Flickr
The technologies we see today didn’t all start out in the forms we’re used to. The phones we carry in our pockets used to weigh pounds, not ounces. Engineers developed hundreds of designs for wind turbines before landing on the three-blade design commonly seen in the field.
Fast forward and now we're looking at a drunk-driver-and-alcohol sensor that was converted into a methane leak detector. And a sensor purchased off the web for less than $30 that was transformed into a monitor that fights off greenhouse gases.
I was excited to see the diversity of technologies such as these moving forward in the Methane Detectors Challenge. Read More
Good energy policy ideas can come from all corners, and Wall Street is no exception.
Goldman Sachs recently served up a powerful case for action on methane in a stroke of market logic grounded in data. In a recent report, the investment bank argues that environmental regulation is more than a necessary evil when it comes to oil and gas development – it’s a vital enabler for economic growth.
There’s power in diverse groups coming together.
Goldman’s insight for the U.S. oil and gas industry – that the current environmental policy vacuum is a major cause of investor queasiness – suggests that markets can help drive environmental progress. Read More
Source: Ron Dahlquist, Getty Images
Recently, the White House took a crucial stride to tackle methane pollution and natural gas waste. A key aspect of the strategy tasks the U.S. Environmental Protection Agency (EPA) with enacting policy to reduce emissions from the oil and gas industry. Yesterday, EPA formally initiated its process, issuing five white papers focused on the biggest opportunities to cut the industry’s methane emissions. A final decision for action is expected later this year.
The Administration’s strategy to reduce methane emissions is an urgently needed development to slow the rate of climate change in our lifetimes. That’s because methane is an incredibly powerful and climate-destabilizing greenhouse gas. Whether you’re a concerned citizen who wants better protections from pollution, an individual compelled to see the U.S. do more to defend the people and places most vulnerable to global climate change, or an energy watchdog who wants to minimize needless waste—know that solutions are within our grasp.
Let’s look at a key piece of the process that the White House galvanized and that EPA has now started to carry forward. EPA’s white papers provide thorough, technical assessment of oil and gas methane emission sources and mitigation technologies, and they provide the factual basis to support policy action. The process requests feedback from the public and a range of expert stakeholders that will help EPA answer: Is now the time to create a real methane policy for oil and gas? I am optimistic the answer will be a resounding “YES.”