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
When the White House announced ambitious plans to cut methane emissions from the oil and gas sector by 45 percent, EDF President Fred Krupp called it a landmark move. And according, to a recent poll, 66 percent of Americans agree that strong federal standards are needed to safeguard our air from methane pollution, which is responsible for about a quarter of today’s warming. The oil and gas industry– the largest industrial source of this climate pollutant–wastes enough unburned methane each year to heat six million homes.
The plan has drawn widespread support among opinion leaders as well as industry experts.
The everyday use of natural gas across the greater Boston area is resulting in much higher emissions of methane than previously thought, according to a study published this month in the Proceedings of the National Academy of Sciences. These emissions represent the waste of a valuable energy resource as well as an important source of greenhouse gas, since methane—the main component of natural gas—is 84 times more potent than carbon dioxide for the first 20 years it is in the atmosphere.
The reported emissions are more than two times higher than previously estimated using state emissions inventory data, with a yearly average loss rate from delivery and use of natural gas in the Boston urban region of 2.7 percent (with a margin of error of 0.6 percent). That’s enough natural gas to fuel about 200,000 homes each year.
While EPA data indicates that investments by many gas utilities in reducing leaks have made a difference, this study, led by scientist at Harvard University, demonstrates that the national statistics may mask significantly higher emissions in some parts of the country. Read More
Also posted in Natural Gas
A rising chorus of companies in the oil & gas services sector are adding their voices to the majority of Americans who think it’s a smart idea to limit vast waste of methane taking place every day in the nation’s the oil and gas operations. These companies in the methane mitigation industry are experts in finding and fixing methane waste. They issued statements welcoming the EPA’s announcement of planned rules aimed at reducing methane emissions from the oil and gas value chain.
As the ones who are working overtime to provide technologies and services to minimize release of methane and other pollutants throughout the natural gas value chain, these companies see limiting methane emissions as smart business for the oil and gas industry.
Consider their remarks:
- “Rebellion Photonics welcomes today’s announcement from the EPA regarding its methane plan. It is a positive step towards ensuring we minimize emissions of methane, a short-term climate forcer, from the US oil and gas value chain. America’s shale revolution holds vast potential to both power our economy and drive environmental gains. Limiting the amount of methane that leaks from natural gas equipment ensures that we will maximize the environmental benefits of America’s plentiful natural gas resources,” said Rebellion Photonics, a manufacturer of specialized cameras that detect methane leaks.
Also posted in Natural Gas
When credibility is your stock in trade, it’s important to have your facts straight. On Monday, the Wall Street Journal blew it.
In an unsigned opinion piece dubbed “Meth Heads in the White House,” the paper dismisses plans expected to be announced by the Obama administration in the next few weeks that would start to tackle the huge amount of methane leaking from America’s oil & gas production facilities.
The question is a significant one, because – as the article notes in passing – methane is an extremely potent greenhouse gas (in point of fact, packing more than 80 times the warming power of carbon dioxide over a 20 year time frame). According to EPA data, oil & gas operations emit roughly 8 million metric tons of unburned methane annually, enough gas to heat nearly 6 million homes. Read More
By Karin Rives, EDF's editorial manager and editor of the EDF Voices blog
New York’s statewide ban on fracking is a vindication for communities around the country that have been hit hard by unconventional natural gas production, writes Fred Krupp, Environmental Defense Fund’s president, in a Dec. 22 op-ed piece in The Washington Post.
It demonstrates what can happen when oil and gas producers erode public trust by brushing aside legitimate questions – and reinforces the urgent need for strong, sensible regulation.
The growing controversy surrounding our natural gas industry has created a decisive moment for President Obama.
As the administration prepares a policy to reduce methane emissions from the oil and gas sector, the president has an opportunity to cut both energy waste and climate pollution – in addition to protecting the ecosystem and public health.
In a second op-ed piece published Dec. 17 in The Hill, Fred lays out five principles that should guide the national methane standards the Obama administration is expected to announce soon: Read More