Energy Exchange

How the conversation changed at this year’s World Gas Conference

For years, conversations at major oil and gas industry conferences focused on one thing: the shale revolution. Excitement about the surge in economical new supply of unconventionally produced oil and gas was palpable, as panelists spoke of the potential for shale to transform everything from the geopolitics of American energy supply to the price of hydrocarbons. With such an unexpected and seismic change, a supply side story carried the day, with a focus on “below ground” drivers of energy abundance.

But today, the shale revolution is simply the new normal and the conversation has changed. “Above ground” factors like increasing competition from renewables, greenhouse gas emissions, and social license to operate will affect demand for natural gas for years. How industry confronts such challenges – both in the United States and internationally – will have a lot to do with industry’s longevity in putting resources to productive use in a changing world demanding cleaner energy.

At last week’s World Gas Conference in Washington, DC, difficult questions swirled about whether industry has done enough to earn society’s trust and prove natural gas has a constructive role to play in the transition to a low carbon economy. The biggest buzz of all surrounded one key issue: methane emissions, a core strategic challenge for the oil and gas industry.

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Posted in Methane, Natural Gas / Comments are closed

What the heck is an environmental group doing at the World Gas Conference?

The simple answer is this. Environmental Defense Fund (EDF) approaches challenges pragmatically. If we want to rid the planet of harmful climate pollution, our efforts must include working with the industries that can make the biggest difference.

That means I spend a lot of my time working with leaders from the oil and gas industry. While we don’t always agree, we forge solutions wherever we can.

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Posted in Methane, Natural Gas / Comments are closed

Sitting down with BP to discuss its new methane target

As part of its Energy Transition report, BP announced a stringent new quantitative target to address its emissions of methane, a powerful greenhouse gas pollutant. Effective immediately, BP will target limiting methane emissions from its global upstream oil and gas operations that market natural gas to 0.2 percent. Ben Ratner, Senior Director with EDF+Business, sat down with Paul Jefferiss, Head of Policy, BP, to learn more.

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Posted in Methane, Natural Gas / Comments are closed

As API changes leaders, it must change leadership

With Jack Gerard stepping down as head of the American oil and gas industry’s most powerful trade association, industry has an important opportunity to change with the times.

The oil and gas industry and its ecosystem are evolving rapidly before our eyes. Technology improvements allow ever more efficient production. Resource discovery in areas like the Permian Basin unlock opportunity and drilling activity that few ever thought possible. But the most profound change is happening above ground—the steadily growing calls for climate action by investors, governments, corporate energy users, and society at large.

The future of industry—its very prospect of surviving, let alone thriving, in a decarbonizing world—depends on its ability to meet society’s demands, not just for energy, but for leadership.

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Posted in Natural Gas, Washington, DC / Tagged | Comments are closed

Five things to watch as industry tackles methane in 2018

As we close out 2017, we are energized by successes in our work with oil and gas industry partners. And as we look forward to a new year and a fresh start, here are five things we’ll be looking for as industry leaders step up methane action in 2018.

  1. Target setting

This year, 10 leading companies through the Oil and Gas Climate Initiative supported the ambition of achieving “near zero” methane emissions, and committed to set quantitative methane targets in 2018. This was an important and welcome moment as CEOs upped their methane pledge. 2018 will be a key year for follow through in establishing and announcing those targets. We will look for targets that are ambitious, innovation-forcing, and linked to credible plans for verification. We will also look that this action addresses emissions from both oil and gas production, as the International Energy Agency’s data shows that more methane emissions comes from oil production than from gas production. Read More »

Posted in General, Methane, Natural Gas / Comments are closed

Oil & gas CEOs up their methane pledge: Here’s what to watch for as promises turn to action

This post was co-authored by Drew Nelson

The CEOs of ten leading oil and gas companies today announced intentions to move toward “near-zero” methane emissions, pledging to set a quantitative reduction target by this time next year. At first blush, it might sound like a modest step – a promise to make a promise. In fact, the CEOs announcement constitutes an important and welcome recognition that oil and gas methane emissions impact the climate, are too high, and must be reduced. The new pledge comes just days after the International Energy Agency previewed its analysis showing that methane is a “critical issue for the long term natural gas outlook” and steep emission reductions are possible with today’s technology, and enormously cost effective.

From Social Issue to Business Issue

The 10 companies, which together are responsible for 20 percent of global production, joined forces three years ago to form the Oil and Gas Climate Initiative. Last year, they invested $1 billion to accelerate commercial deployment of low carbon energy technologies. The new pledge is the next important step on the road to decarbonizing their operations, with methane playing a central role. Read More »

Posted in Climate, Methane, Natural Gas / Tagged | Comments are closed