Energy Exchange

UN Special Report confirms urgent need to reduce methane emissions

The latest UN IPCC report makes it crystal clear that carbon dioxide (CO2) is not the only pollutant that matters for limiting future warming.

Deep reductions in emissions of non-CO2 pollutants, particularly methane (CH4), are essential to staying below temperature targets, and have the added benefits of improving public health, food security, and ecosystems.

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Also posted in Climate, Natural Gas / Comments are closed

California’s move to cut utility gas leaks is a critical part of moving towards a low carbon future

As shown by the recent special report from the Intergovernmental Panel on Climate Change, emissions from fossil fuel combustion in California and elsewhere present dire consequences for the planet. This means California, like the rest of the world, must take real steps now to shift toward a low carbon future.

Similar to many other developed economies, California has a vast oil and gas delivery infrastructure that is integrated into its modern way of life – a system that supports the combustion of fossil fuels in nearly every corner of society. As a result, making dramatic shifts toward a carbon neutral economy as envisioned in a recent executive order by Governor Brown will take a lot of investment. While this investment is underway, it’s appropriate to also make sure the system that delivers energy to homes and businesses is as environmentally benign as possible.

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Also posted in Aliso Canyon, California, Gas to Clean, General, Natural Gas / Comments are closed

Harvard Management Company discusses challenges, opportunities for reducing methane emissions in oil and gas industry

Last month, we had the opportunity to speak about methane and ESG (Environmental, Social and Governance) investing with Michael Cappucci, Senior Vice President of Compliance and Sustainable Investing at Harvard Management Company (HMC). An early leader in ESG investing, HMC was the first U.S. university endowment to sign the UN-supported PRI ESG investing initiative in 2014.

HMC manages the university’s $37 billion endowment and believes ESG risks can have indirect and direct impacts on a company’s performance. Part of HMC’s work with Principles for Responsible Investment (PRI) includes co-leading a group of institutional investors examining the global efforts underway to limit methane emissions and the opportunities to increase their effectiveness. As HMC’s representative to that group, Michael explains below why methane is a risk for all investors and how far the industry has come in just a few short years. Read More »

Also posted in Natural Gas / Comments are closed

What to watch for as methane targets become the new normal

Last October, the 10 CEOs of major oil and gas producers, including BP, China National Petroleum and Saudi Aramco, announced an aspiration to reach near zero methane emissions from their companies’ natural gas value chains. They pledged, as part of their participation in the Oil & Gas Climate Initiative (OGCI), to work together on a target that would deliver on this future by the time they reconvened for their next annual event.

Because that anniversary is right around the corner, it’s timely to revisit an analysis EDF released this year – with support from several leading investors and industry experts –that lends key criteria for companies to craft robust methane targets, and for stakeholders to evaluate them.

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Also posted in Natural Gas / Comments are closed

3 “Digital Oilfield” trends to watch at Gastech 2018

Four years ago, I stood in the centralized data command center of an American oil and gas company, watching a former colleague remotely adjust infrastructure at wellsites thousands of miles away because an algorithm detected a potential failure. This was the first time I personally witnessed the power of the “digital oilfield.”

Essentially, the “digital oilfield” refers to a transformative effort to bring solutions such as automation, predictive maintenance, and IoT technologies to the world’s oil and gas industry. Oilfield digitization has started to change the way decisions are made, operations are conducted, and facilities are managed across the entire oil and gas value chain. While early adopters are already employing automated and connected innovations to gain a competitive advantage, only a few are applying digitization technologies to address one of the industry’s biggest challenges: methane.

Fortunately, this is starting to change—because despite a contentious political environment in the United States with the current Administration’s attempts to dramatically weaken methane emissions standards—the opportunities surrounding digital methane management are unprecedented and global, and both the bottom line and the environment can benefit. That’s something that everyone along the oil and gas value chain can get behind.

As Gastech gets underway in Barcelona this week, here are three oilfield digitization trends I’m watching. Read More »

Also posted in Natural Gas / Comments are closed

Methane rollbacks create moment of truth for oil and gas executives

How top energy companies engage in the U.S. methane policy debate in the coming weeks may tell us a lot about the future of natural gas.

As these companies have themselves recognized, the role of natural gas in a world that can—and must—decarbonize depends on minimizing harmful emissions of methane from across oil and gas production and the natural gas value chain. But a recent comprehensive study involving dozens of leading academics and companies around the country found that U.S. methane emissions from industry are 60 percent higher than prior estimates—enough to double the climate impact of natural gas.

Such wasteful emissions leak away the potential climate benefits of natural gas, threatening the credibility of executives making the case to institutional investors and society that natural gas can meet what some industry leaders have deemed the “dual challenge” of meeting energy demand while reducing emissions.

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Also posted in Natural Gas / Comments are closed